The FTSE 100 index was down 0.6% at 6,444 points early on Monday, pulled lower by its largest constituent AstraZeneca (AZN) whose shares lost 2.4% t0 £82.30, and a report by finance industry body TheCityUK which warned that the surge in corporate debt was unsustainable.
AstraZeneca shares fell after press reports over the weekend that it had approached US pharmaceutical firm Gilead Sciences (GILD) about a possible merger.
Trading in Asia saw advancing indexes with the MSCI Asia Pacific index gaining 0.23% and Japan’s Nikkei 225 adding 1,4%.
Brent Oil prices gave up 1% to $39.9 a barrel while Gold was 0.7% higher at $1,692 per ounce. On currency markets the pound was 0.2% lower against the US dollar at $1.27 cents.
CORPORATE NEWS
In a trading statement, online trading platform Plus500 (PLUS) said heightened market volatility had persisted, resulting in record levels of customer trading activity. The company added 100,574 new customers since the start of April, already ahead of its expectations for the entire quarter. The shares sank 12% to £11.3.
Car dealership firm Lookers (LOOK:AIM) said it had concluded extra procedures were required for it to produce final 2019 results meaning it won’t now be possible to meet the FCA’s 30 June deadline, resulting in a suspension of the shares on July 1. The company is targeting the end of August as the earliest possible date for the accounts. The shares crashed 15% to 26.5p.
Energy storage and clean fuel company ITM Power (ITM:AIM) said it had a record order backlog of £52.4m up 24% since 27 January. However, sales for the year ended 30 April 2020 fell 30% to £3m, impacted by COVID-19 related delays. The shares dropped 24% to 271.2p.
Fantasy video games developer and publisher Frontier Developments (FDEV:AIM) confirmed it had seen a strong finish to the financial year ended 31 May, with operating profit expected to be at least £16m on revenues of around £76m, both ahead of prior guidance. The shares gave up 1% to £19.20 after a strong run which has seen the shares gain 70% over the last three-months.
Tools and equipment hire company Speedy Hire (SDY) said revenues had recovered in May and June after falling sharply in April in the wake of the Covid-19 crisis. However the shares fell 5.5% to 56.7p reflecting the weak overall market tone.
Revenues in April were down 35%, which was above the board’s expectations, and as of last week they were down around 17%. Strong cash collection and utilisation of government support saw net debt reducing from around £68m to £79m at 31 May 2020.
Property investor Segro (SGRO) said it had acquired a warehouse estate in Perivale, West London, from Federated Hermes for £202.5m.
The 34 acre estate, known as Perivale Park is located in Segro's core west London cluster alongside the A40 main road into the city centre and within two miles of London's inner arterial road, the North Circular Road. The shares fell 0.8% to 885.4p.
Shares in carbon fibre reinforced ceramic materials manufacturer, Surface Transforms (SCE:AIM) were 14% higher to 18.5p after it announced it had been selected as a tier one sole supplier of brake discs to Koenigsegg in a contract worth in excess of £5m.
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