UK stocks were higher on Friday after retail sales rose faster than expected for the second consecutive month as consumers brought forward Christmas shopping due to worries over the availability of products linked to global supply constraints.
The FTSE 100 index of leading shares was 0.2% higher at 7,276 points in early trading.
In Asia, the Japanese central bank left interest rates unchanged and indicated it was a long way off normalising monetary policy in contrast to the Bank of England and the US Federal Reserve, which tightened policy this week.
The Nikkei 225 index dropped 1.8% while in China the SE Composite index was 1% lower.
Oil prices were lower with brent crude down 1% at $74.15 per barrel, while gold nudged up 0.5% to $1,807 an ounce.
CORPORATE NEWS
Chemicals company Johnson Matthey (JMAT) said it had sold its health business to Altaris Capital Partners for £325 million. It will 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 30th September 2021. The shares nudged up 0.1% to £19.93.
Primary Health Properties (PHP), the investor in modern primary healthcare facilities, said it has 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 finished, which is expected to occur in the second quarter of 2022, the company said.
This acquisition 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 commercial 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 30 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 gained 1% to 888.9p.
Non-standard lending group Morses Club (MCL:AIM) 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.’ The shares dropped 1.9% to 56p.
