In contrast with European and other international markets, UK stocks were higher on Friday after retail sales rose faster than expected for the second consecutive month.
At midday the FTSE 100 index of leading shares was up 21 points or 0.3% at 7,276 points led by mining and consumer-facing stocks.
US futures were indicating a lower opening after yesterday's sell-off, while Asian markets were also weaker after the Japanese central bank left interest rates unchanged and said it was a long way from normalising monetary policy, in contrast to the Bank of England and the US Federal Reserve which both tightened policy this week.
Oil was weak with Brent crude futures down 1.6% at $73.65 per barrel, while gold nudged up 0.5% to $1,807 an ounce.
CORPORATE NEWS
Shares in chemicals company Johnson Matthey (JMAT) were flat at £19.95 despite the news the firm had sold its health business to Altaris Capital Partners for £325 million and would retain an equity interest of approximately 30%.
The deal represents an implied transaction multiple of 9.8 times underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) of £33 million for the 12 months to September.
Primary Health Properties (PHP), the investor in modern primary healthcare facilities, said it had agreed to acquire a medical and office facility in the North East of England for £10 million.
The acquisition will complete when a comprehensive refurbishment of the premises is complete in the second quarter of 2022, and will increase the company’s portfolio to a total of 521 assets, of which 20 are in Ireland, with a contracted rent roll of over £140 million. The shares added 0.2% to 149p.
STRONG TRADING
Shares in native in-game advertising group Bidstack (BIDS:AIM) surged 25% to 4p after reporting a strong trading update. The company said it has secured a revenue stream of a guaranteed minimum of US$30 million advertising spend over two years, commencing 1 March 2022.
The company also announced a two-year deal with leading pan-European digital entertainment platform Azerion which it said would ‘will grow Bidstack's global sales footprint exponentially thanks to Azerion's established team of over 1,000 employees operating across 26 offices in 18 countries.
Global music and audio products company Focusrite (TUNE:AIM) said it was still experiencing supply constraints due to the global shortage of components while freight and shipping costs remain ‘significantly’ higher.
However, the company insisted it was managing the challenges in line with its expectations. The shares dropped 1.7% to £15.55.
Wealth manager Mattioli Woods (MTW:AIM) said net inflows and the number of new clients on-boarded were higher in the first half to November compared with last year reflecting the strength of existing client referrals and new business initiatives.
Organic revenue growth was up 10% over the period. The company said the trading outlook for the current financial year was in line with management’s expectations. The shares were flat at 881p.
Shares in non-standard lending group Morses Club (MCL:AIM) fell 2% to 56p after it said the board had decided to abandon plans to reorganise the business by introducing a new holding company because the work couldn’t be completed within the time allotted.
The company said ‘further funding arrangements for the group have now been confirmed until 31 March 2023, and the business is trading in line with expectations, with continued strong customer demand for credit products in both trading divisions.’
