ondon’s FTSE 100 fell initial trade, as investors across global markets track the spread of popular protests against the Beijing government’s strict anti-Covid lockdown measures.
Michael Hewson, chief market analyst at CMC Markets, the spread better, said the mood in dealing rooms “is being tempered this morning by civil unrest in China over fresh anti-covid restrictions”.
By way of distraction, there was news of one of the few companies planning to make its debut in London this year. Hellenic Dynamics will raise around £40 million when it comes to market next week.
Live updatesShow latest updates 1669630231Barclays’ chief executive CS Venkatakrishnan diagnosed with cancerBarclays said today that its chief executive, CS Venkatakrishnan, has been diagnosed with cancer.
The bank told investors that he would be undergoing treatment for Non-Hodgkin Lymphoma. In a letter to staff, he said “the matter has been detected early, with scans and biopsies confirming it to be very localised” and “cruable”.
Known throughout the company as Venkat, he said he would be working from home during periods of his treatment, likely to last between 12 and 16 weeks. He said the company would continue to run “normally”, and that he would “continue to be actively engaged in managing it.”
1669627913Monday markets: oil price tumblesBACK in March supposed energy market guru Pierre Andurand had a stark warning on oil prices— they could double to $250 a barrel as the chaos from the Ukraine war spiralled.
The hedge funder told investors: “Wakey, wakey. We are not going back to normal business in a few months.”
This morning Mr Andurand was splashing cold water on his face as Brent crude fell 3% to its lowest price January.
Brent was down to $81.48 a barrel, while the US equivalent was below $75.
Andurand, who among other accolades has an MSc in Mathematical and Theoretical Physics from Oxford was today on his calculator offering investors theories as to why he was so wrong.
The simple reason is that recession or fear of it has sent demand for the black stuff tumbling. Political unrest and a surge in Covid-19 cases in China is hardly helping.
Naeem Alsam, chief market analyst at Avatrade, says: “Basically, it is demand that is creating the main issue for the price, and the fact that we have a potential recession threat and now the covid issues in China, things are becoming difficult for oil traders.”
There were knock-ons for China focussed shares. In particular the Fidelity China Special Situations fund was down 9p to 203p. The Edinburgh Worldwide Investment Trust also took a hit, down 6p at 173p.
On a slightly uneasy day, the FTSE 100 lost 46 points to 7439. BP lost 8p to 479p and Shell 36p to 2330p on the oil price malaise.
Meanwhile, Superdry said it is in talks with Bantry Bay Capital to refinance £70 million of debt ahead of repayments due in January. The shares fell 2p to 124p.
1669625116Brickability shares rally after build-up in customer base powers profit growth
Shares in Brickability rallied after the building products distributor said its move to extend its customer base helped it lift profits, even as clouds started to gather over the house market amid rising interest rates and the cost-of-living crisis.
The AIM-listed company reported a near-60% rise in revenue of over £350 million in the six months to September 30, and profit before tax of over £15 million, up by over 70%.
It said it was able to maintain volumes in its bricks business, which generates around three quarters of its sales, “despite supply issues from both UK and European manufacturers”.
Some margins came under pressure in parts of the business, “where we have not yet been able to immediately pass on all costs attributed to both materials price inflation and fuel surcharges,” said its chief executive, Alan Simpson.
He added: “Our divisions have once again performed well during the first half of the year with both revenue and profit significantly ahead of the prior period, reflecting the diversity of the Group and the strength of Brickability’s positioning within the market.”
Shares in the Bracknell-based firm rose 1.5p to 72p, up over 2%.
1669623709FTSE 100 falls with resource stocks in retreatLondon’s FTSE 100 started the day on the back foot, with resource stocks under pressure, as investors across global markets tracked the outbreak of protests in China against Covid lockdowns.
The prospect of longer and harsher restrictions in the country had already stoked concern about the implications for global growth, while the weekend’s social unrest added to those fears.
Some of the companies most sensitive to the outlook for wider economic growth around the world were among the biggest fallers in early trade. Oil major Shell fell 51p to 2317p, a drop of over 2%. BP was 10p weaker at 478p, also a decline of over 2%. Mining company Rio Tinto fell 67p, or 1.3%, to 5310p. Antofagasta dropped 12p to 1329p, down almost 1%.
1669625385Medical cannabis firm Hellenic Dynamics to float on London stock marketAfter a poor year for companies launching on London’s stock market comes news of deal which will score a listing for Hellenic Dynamics, a supplier of medical cannabis.
While not one of the biggest deals London has ever seen — raising about £40 million — the company will list via a special-purpose-acquisition company. The firm, set up by entrepreneur Davinder Rai, will start trading on the market next Monday, December 5.
Rai intends to become “the supplier of choice to the NHS” medical cannabis, which is increasingly being used as an alternative to opioid based pain killers.
The company owns a lease on a former UN military site in Greece, where it intends to grow the cannabis under LED lights in former missile bunkers.
Rai added: “Hellenic’s admission to the Main Market as the first medical cannabis cultivator marks a major step forward not just for the company but also for the millions of people around the world who will benefit from our life enhancing medical products.”
