MARKET REPORT: Anglo's coal spin-off Thungela lights up the Footsie - Godz
Connect with us

Business

MARKET REPORT: Anglo’s coal spin-off Thungela lights up the Footsie

Published

on

After a dire first day of trading, Anglo American spin-off Thungela made a stonking recovery that took the City very much by surprise.

Thungela was Anglo’s South African coal business but has been separated at a time when the mining giants are under pressure to clean up their acts and decarbonise. 

Thungela’s stock market debut on Monday was always going to be a tricky test of investor appetite.

Recovery: Thungela was Anglo’s South African coal business – but has been separated at a time when the world’s mining giants are under pressure to clean up their acts and decarbonise

But it was dealt a hammer blow by Boatman Capital Research, the mysterious short-selling outfit that previously targeted Babcock International (down 2.3 per cent, or 7.2p to 301p), which published a report branding the group worthless.

It also claimed Anglo had ‘massively underestimated’ the amount required for the clean-up costs of Thungela’s seven mines.

Anglo had put aside £340million, though Boatman said the bill could be as high as £960million.

Stock Watch – Filta

Deep fat fryer cleaning specialist Filta said that its franchisees raked in record revenue of £3.3million in April as Covid restrictions unwound in many of its markets.

This has been driven by the United States, where Filta has lots of big clients such as sports stadiums and universities, and where hospitality businesses have opened sooner than planned.

Trading is picking up in the UK too, though it has been sluggish in Europe because of the slower pace of the coronavirus vaccine rollout.

Shares in the AIM-listed group rose 5.5 per cent, or 8.5p, to 163p by the close. 

Under the terms of the demerger, Anglo shareholders received one share in Thungela for every 10 they hold in the former parent company. 

After a day of dumping from many of these default shareholders, bargain hunters swooped, sending Thungela rocketing almost 30 per cent, or 33p, to 144.04p.

Anglo, which took over Yorkshire potash miner Sirius Minerals last year, rose 1 per cent, or 30p, to 3183p.

Danni Hewson, analyst at AJ Bell, said: ‘While short-term investors unhappy with the thermal coal operation clearly ditched their shares after the demerger from Anglo American, there’s obviously been no shortage in interest from others. It highlights the fact that not every investor is focused on clean and green.’

Thungela’s rise helped keep the FTSE 100 in the black, as it rose 0.3 per cent, or 17.87 points, to 7095.09 by the close. Intermediate Capital Group was another big climber.

The alternative asset manager, which invests in debt, finished the session 5.9 per cent higher, up 127p, to 2283p after its full-year results topped expectations. 

Profit before tax rocketed to £508million in the year to March, up from £111million the year before, which meant it could pump up its dividend to 56p per share, up from 50.8p in 2020.

The FTSE 250 spent the day treading water before falling 0.1 per cent, or 12.56 points, to 22,895.5, despite some hefty risers.

Watches of Switzerland rose after it set a date for its full-year results and told investors it would simultaneously publish an update that will lay out its ‘long-term strategic direction and priorities’.

That sent shares 4.5 per cent higher, up 36p, to 844p.

Lender Paragon Bank was the biggest mid-cap gainer after it unveiled a £40million share buyback programme, and rose 11.2 per cent, or 57.5p, to 569.5p. A boom in mortgage lending sent half-year profits soaring. 

New mortgage loans jumped 45 per cent in the six months to March to £1.1billion, compared with the same period last year, and house prices are at record levels – standing at £261,743 on average.

The effect of the rampaging housing market could also be seen in figures put out by online property group On The Market, which posted its first profit. 

It made £1.1million in the year to January, compared with a loss of £11.7million the year before. 

Visits to its website earlier this year were 13 per cent higher than in January 2020.

A 22 per cent rise in turnover to £23million helped the company, which is 60 per cent-owned by agents, offset £2.6million of discounts given to agents during the first lockdown. It rose 4.8 per cent, or 5p, to 110p.

And, in another sign that the economy is in recovery, Nightcap toasted better-than-expected sales since its bars reopened from May 17. 

The London Cocktail Club-owner, co-founded by former Dragons’ Den investor Sarah Willingham, said revenues were up 92 per cent during the last three weeks compared to 2019. 

Shares rose 6.5 per cent, or 1.5p, to 24.5p.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

This post first appeared on Daily mail

Advertisement
Click to comment

Leave a Reply

Business

Nvidia facing Chinese delay to £28bn Arm takeover

Published

on

By

The £28bn takeover of Arm by US giant Nvidia risks being delayed as China joins those countries scrutinising the deal.

Nvidia has submitted an application for approval to Chinese competition regulators, a process expected to take 18 months. 

When the deal was announced last September, Nvidia and Arm said it would be complete by spring 2022, a timeline that now looks unrealistic.

Chip deal: Nvidia has submitted an application for approval of its £28bn takeover of Arm to Chinese competition regulators, a process expected to take 18 months

China joins regulators in the UK, Europe and the US in looking at the deal. The takeover has been politically charged as Arm is the UK’s premier tech firm.

The need to get the deal past Chinese regulators is the biggest hurdle yet, with complex questions about competition and the US-China trade war coming into play.

China is a key market for Arm’s energy-efficient microchips, which it licenses there through a local joint venture.

Its huge sales in the country, estimated to be more than £300million, put it in the crosshairs of the competition watchdog.

The company’s clout has put it on a collision course with state-backed chip investment group E-Town Capital and home-grown companies, including Semiconductor Manufacturing International Corporation, who all oppose the deal.

China is concerned that Nvidia’s takeover could hand control of chip designs to a US company, which could lead to the likes of Huawei losing access to its products. Experts said global politics could scupper a deal. 

In the US, competition regulators have been examining the deal for several months.

Last month the UK government ordered an investigation into the takeover, citing competition and national security concerns. 

There are also fears that some of the 3,000 UK jobs could be moved abroad, leaching vital skills that were protected under current owner Softbank.

If the deal is blocked, Softbank could be in a precarious position, as private buyers are unlikely to take on the same regulatory battle.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

This post first appeared on Daily mail

Continue Reading

Business

London Metal Exchange’s famous ‘open outcry’ trading floor is saved

Published

on

By

The London Metal Exchange’s world-famous ‘open outcry’ trading floor is safe and will reopen in September.

In January this year, management said it was considering closing the ring, where traders shout out bids for commodities from a circle of red seats, permanently.

But the proposals were met with uproar, with brokers saying physical trading, using yells and hand signals, was the best way to work out accurate metals prices.

Proposals to close the London Metal Exchange’s world-famous ‘open outcry’ trading floor were met with uproar earlier this year

Almost 200 traders and industrial users submitted comments during a two-month consultation period. 

It is one of the world’s last open-outcry markets and its origins trace back to a London coffee shop 140 years ago.

Dealers set daily benchmark prices for important industrial metals such as copper and zinc – and many have been worried that moving to an electronic model that allows for less flexibility could take away its edge.

The exchange is owned by HKEX, the owner of the Hong Kong Stock Exchange. 

It banned daytime drinking in 2019, but still maintains its strict dress codes.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

This post first appeared on Daily mail

Continue Reading

Business

Bank of England will not name lenders which fail climate stress tests

Published

on

By

The Bank of England will not name and shame lenders which fail its climate change stress tests.

It has set out its review of how the UK’s financial services industry will cope with global warming, which will scrutinise the 19 biggest lenders and insurers.

But the results of the test will not be used to determine how much spare money banks should hold in the event of a crisis. Nor will the institutions’ individual scores be revealed.

The Bank of England has set out its review of how the UK’s financial services industry will cope with global warming, which will scrutinise the 19 biggest lenders and insurers

Governor Andrew Bailey said: ‘The end result will be more robust management of climate-related financial risks across the sector.’

The Bank is worried the financial system could be thrown into crisis if climate change worsens. 

Insurers could have to pay out huge amounts of money to customers affected by severe weather, and banks may suffer if mortgage customers are hit by floods.

The Bank’s climate change tests are due to be published in aggregate next May. 

It came as the Treasury announced an independent group to tackle ‘greenwashing’, where investment funds try to make themselves appear more climate-friendly, to win investor approval.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

This post first appeared on Daily mail

Continue Reading

Entertainment

Tech

Trending