The FTSE 100 Closes Down 0.5%, Dragged by Miners
January 03 2024 - 12:22PM
Dow Jones News
The FTSE 100 index closed Wednesday down 0.5% to 7682 points,
mainly dragged by the mining sector and amid a downturn in global
markets as repriced rate-cut expectations and increased tensions in
the Middle East led to further risk-off sentiment, IG senior market
analyst Axel Rudolph said in a note. "Lower-than-expected U.S. job
openings, while the manufacturing sector remains in contraction
territory, also weigh on stock indices ahead of this evening's
Federal Open Market Committee minutes," he said. Miner Anglo
American led the fallers with shares closing down 5.0%, followed by
Rentokil and Pershing Square Holdings, down 4.95% and 4.0%,
respectively. On the green side, Centrica was the top riser, with
shares up 3.15%, followed by pharma giant GSK, up 2.7% after
Jefferies upgraded its rating on the stock to buy.
COMPANIES NEWS:
Entain Appoints Eminence Capital's Ricky Sandler as Nonexecutive
Director
Entain said that it has appointed Ricky Sandler as a
nonexecutive director with immediate effect and that they will work
together to find an extra nonexecutive director.
MARKET TALK:
Watches of Switzerland to Benefit From Rolex Price Increase in
U.K.
1150 GMT - Rolex's price increase of around 4% in the U.K. is
positive news for Watches of Switzerland, given that retail prices
are the most relevant metric for the group's business model,
Barclays analysts say in a note. However, it is slightly
disappointing that prices in the U.S. remain unchanged, they add.
"No change in Rolex prices in the U.S. may have more to do with
dollar strength/pricing differentials between geographies, than
concerns over the resilience of U.S. demand," they say. It could
also be related to concerns over softer trading and a drop in
secondary market prices, they say. Rolex represents around 50% of
the luxury-watch retailer's revenue, and the U.K. represents around
55% of group revenue, they say. Shares are down 0.6% at 672.0
pence. (michael.susin@wsj.com)
---
Walgreens 1Q Earnings Seen Down, Eyes Set on 'Boots' Business,
CFO, Outlook
Walgreens Boots Alliance's upcoming quarter will show signs of
reset for the drugstore chain, JPMorgan analysts say in a research
note. Although earnings will be down significantly, part of the
positive story for Walgreens is predicted on a cleaner set of
financials going forward, analysts say. Investors will look for
comments about the timing of naming a permanent CFO, the cadence of
improvement going forward in FY24, whether it it looking to sell
its Boots business, and thoughts on proposed alternative pharmacy
reimbursement models. Shares fall 0.7% to $26.46 in pre-market
trading. (sabela.ojea@wsj.com; @sabelaojeaguix)
---
Traditional U.K. Asset Managers Lack Investment Appeal
1113 GMT - There is no strong case to own any traditional asset
managers, Numis Securities says. Issues that traditional active
asset classes have faced for some time, such as persistent net
outflows, fee pressure and higher costs, look set to remain as
structural problems, Numis says. While a more risk-on market would
likely "lift all ships" on a shorter-term basis and many firms
might face takeovers amid industry consolidation, investors should
still be wary of making any long-term investments, Numis analyst
David McCann writes. Numis downgrades Ashmore to sell from hold,
citing a lackluster medium-to-long-term investment performance. It
maintains hold recommendations on abrdn, AssetCo, Jupiter,
Liontrust, Man Group and Polar Capital and 'reduce' ratings on
Ninety One and Schroders. (philip.waller@wsj.com)
---
Burberry's Turnaround May Need More Investor Patience
1031 GMT - Burberry is a "show-me story requiring further
investor patience", Stifel says, downgrading the luxury-goods group
to hold from buy. "We see the progress on Burberry's turnaround and
elevation journey as being held back by an adverse external
environment in 2024," Stifel analyst Rogerio Fujimori says in a
note. "We view Burberry as a cheap stock that lacks catalysts for
re-rating and requires further investor patience as the earnings
downgrade cycle doesn't appear over yet." Stifel also cuts its
price target to 1550 pence from 1950p and its forecast for FY25
pretax earnings before interest by 12%, leaving the brokerage's new
FY25 estimates 5% below consensus. Shares fall 2.5% to 1365p.
(philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires
(END) Dow Jones Newswires
January 03, 2024 12:07 ET (17:07 GMT)
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