The UK’s major shares closed Friday fractionally in the red but held above 7,000 in a relatively quiet end to the trading week.
The benchmark FTSE 100 nudged 0.02% lower to close at 7,018.05 after strong UK retail sales data and a preliminary reading of the UK Composite Purchasing Managers’ Index hit its highest level since it was launched in 1998 at 62.0, matching the forecast in a Reuters poll of economists and up from 60.7 in April.
In the US, markets were mixed with the Dow up 0.5% to 34,268, the S&P 500 flat at 4,162 and the Nasdaq Composite stumbling from earlier gains to fall 0.3% to 13,490.
Bitcoin fell back below $40,000 to at a low of around $36,675, still above the trough nearer $30,000 hit on Wednesday. Other major cryptocurrencies tumbled too. Ethereum dropped back toward $2,500 and Dogecoin dropped towards $0.34.
In regards to more traditional stores of value, Gold looked set to record a third consecutive week of gains and hit its highest level in four months.
WTI and Brent crude futures gained despite fears that an Iranian nuclear deal could unlock a flood of Iranian crude just as demand begins to pick up from the pandemic.
COVID VACCINE DEVELOPMENTS
Pharma giant AstraZeneca (AZN) ended the day roughly flat at £81.35, despite announcing that its Covid-19 vaccine Vaxzevria has been granted a special approval for emergency use in Japan for active immunisation of individuals aged 18 years and older.
The Japanese Ministry of Health, Labour and Welfare granted the approval based on positive phase III efficacy and safety data from the Oxford University-led clinical trial programme in the UK, Brazil and South Africa, and a Phase I/II trial in Japan.
‘Production of the vaccine in Japan is already underway, and the first doses are expected to be available in the coming weeks,’ said the company.
Waste management group Biffa (BIFF) rallied 4% 293.5p after it agreed to acquire the collections business and certain recycling assets from Viridor Waste Management for about £126 million.
‘This acquisition expands Biffa’s collections business and recycling capabilities while solidifying its leading position in UK sustainable waste management,’ insisted the group.
CARD FACTORY SHREDDED
Greeting cards-to-gifts retailer Card Factory (CARD) plunged 15% to 73p, even as it announced the completion of a £225 million refinancing and flagged a strong trading performance since reopening its stores.
However, the retailer also conceded that initial strong demand has been satisfied, with store like-for-like sales for the first five weeks ‘marginally down’ versus the same period in pre-pandemic 2019, while online sales have fallen too with customers now able to shop in stores.
Floor coverings distributor Headlam (HEAD) lost much of its earlier rally to nudge just 0.4% ahead to 468p, despite flagging an improving sales trend in the first four months of the year following a ‘soft start’.
Revenue was up 30.6% against the Covid-impacted comparative period in 2020 and ‘only slightly below’ the 2019 comparator.
Close Brothers (CBG) improved 1.6% to £16.04 on news the merchant banking group continued to perform strongly during its third quarter. All divisions are tracking in line, or slightly better than, consensus forecasts, with Winterflood the standout performer.
Oxford Cannabinoid Technologies (OCTP), a pre-revenue company looking to develop cannabinoid-based prescription medicines, was marked down from its 5p placing price to 4.63p in debut dealings on the main market.
ELSEWHERE ON THE MARKET
Elsewhere, Shield Therapeutics (STX:AIM) rose 3.8% higher to 60p on news the specialty biotech remains ‘on track’ to launch iron deficiency drug Accrufer in the US by end of June 2021.
Transport software and services specialist Tracsis (TRCS:AIM) jumped 5% to 850p after welcoming the long-awaited Williams-Shapps Plan for Rail in the UK.
Engineering and technology recruitment business Gattaca (GATC:AIM) was up 1.4% at 152p, despite upgrading full year profit guidance after net fee income recovered at a faster rate than expected.
Clinical AI company Sensyne Health (SENS:AIM) rose 2.6% to 157.5p after inking its first Strategic Research Agreement in the US with St. Luke’s University Health Network, a leading US health system serving patients in Pennsylvania and New Jersey.
