UK stocks saw deeper losses during the afternoon session influenced by weak European banks as European interest rates fell and investors eyed more stimulus measures from the European central bank. This was despite better than expected results from JP Morgan Chase as the US banks kicked off the US reporting season.

At 16:30, the benchmark FTSE 100 index was 0.6% lower at 5,964.

CORPORATE NEWS

Car dealer Marshal Motor (MMH:AIM) pleased the market by raising its full year pre-tax profit guidance to £15 million from breakeven thanks to ‘further strong current trading’ in the third quarter. The shares accelerated 12.9% to a six-month high of 135.5p.

Performance was strong across all key like-for-like new vehicle sales metrics with third quarter registrations up 16% against a 4.1% rise for the industry, according to the Society of Motor Manufacturers and Traders (SMMT).

Trading in September was better still, with new car like-for-like sales up 19.1% against a 1.1% fall for the sector.

Insurance investor BP Marsh (BPM:AIM) posted close to a 10% rise in net asset value to £142.6 million or 396.2p per share in the six months to July. The total shareholder return for the period was 4.8% including the July dividend.

The firm continues to invest, subscribing for a 30% cumulative preferred share holding in US specialist insurer SAGE as well as taking a further 15% stake in EC3 Brokers, taking its holding to 35% through a £1.5 million injection of capital. The shares jumped 10.7% to 260p.

Utility group SSE (SSE) announced it had reached a deal to sell its 50% interest in two energy-from-waste ventures to a European infrastructure fund for £995 million in cash. The group sees the deal completing by year-end subject to EU approval. The shares firmed 1.7% to £13.5.

In smaller company news, motor insurer Sabre (SBRE) reported a 9% drop in gross written premiums to £139.2 million in the nine months to September and said it expected a similar fall for the full year.

It also forecast a combined ratio close to its long-term target in the mid-70s and hinted that thanks to its strong solvency coverage ratio of 186%, which is well above its target of 140% to 160%, it would pay ‘an attractive full year dividend’. The shares fell 3.2% to 245p.

Property portal OnTheMarket (OTMP:AIM) posted a 28% rise in first half turnover to £10.2 million and an operating profit of £0.7 million compared with a prior-year loss of £7.2 million as the number of agents using its service and the average revenue per agent rose.

The firm also reduced its marketing spend by £4.4 million or two thirds to reduce costs and conserve cash, leaving it with a healthy £9.8 million of cash on hand. Shares slipped 4.4% to 97p.

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Issue Date: 13 Oct 2020