Global markets have taken fright at the rapid spread of Omicron and government actions to slow the virus’ progress, threatening the global recovery.
The blue-chip German DAX index opened 2.6% lower while US futures indicated the S&P 500 index would open 1.4% lower. Overnight in Asia, the Nikkei 225 was 2% lower and China’s SE Composite was 1% down.
Brent Crude was 3% lower at $71.32 per barrel and Gold was steady at $1,798 an ounce.
In early trading the FTSE 100 index of leading shares was down 1.7% at 7,147 points, led lower by mining and 're-opening' stocks such as airlines and foodservice.
CORPORATE NEWS
Pharmaceutical giant AstraZeneca (AZN) said its drug Saphnelo, used for treating adult patients with moderate-to-severe active autoantibody-positive systemic lupus erythematosus or SLE, has been recommended for marketing authorisation in the EU following positive results from the late stage TULIP and second phase MUSE trials.
Saphnelo would be the first new treatment for SLE in the EU for almost a decade, if approved. Separately, the company said its drug Tezspire used for treating severe asthma had been approved for use in the US following a priority review by the Food and Drug Administration. The shares dropped 1.7% to £83.70.
Engineering company Rolls-Royce (RR.) said it had reached an agreement with the QIA (Qatar Investment Authority), the sovereign wealth fund of Qatar to make an investment to build a new nuclear power station to power around a million homes.
QIA will join Rolls-Royce Group, BNF Resources UK Ltd and Exelon Generation Ltd as shareholders in Rolls-Royce SMR, taking a 10% share of the equity. The shares reversed 4% to 109.9p.
MUSICAL CHAIRS
Mining company Rio Tinto (RIO) said it had appointed Dominic Barton as it incoming chairman, to replace Simon Thompson.
Rio Tinto has made sweeping management changes after it last year blasted ancient caves sites in Australia of cultural significance to the Puutu Kunti Kurrama and Pinikura people.
Barton will join the board on 4 April and be appointed chairman at the conclusion of Rio Tinto's annual general meeting on 5 May. The shares dropped 2% to £47.70.
Pharmaceutical company GlaxoSmithKline (GSK) said that Sir Dave Lewis had been appointed as non-executive chair designate of its new consumer healthcare company, paving the way for latter's proposed demerger from GSK in 2022.
Lewis would take up the role on 1 January 2022. The shares dropped 2% to £15.80.
Budget carrier Wizz Air (WIZZ) said senior independent director Simon Duffy was standing down, due to other commitments.
Duffy had elected not to put himself forward for re-appointment when his current term expired on 28 January.
He would be succeeded by current director Barry Eccleston. The shares descended 4% to £38.34.
Heat treatment services supplier Bodycote (BOY) said it had appointed Daniel Dayan as non-executive chair starting 1 January 2022.
Dayan would succeed Anne Quinn CBE who, was was set to retire as chair and once a suitable successor had been identified. The shares dropped 1.3% to 819p.
REIT AQUISITIONS
Property investor Urban Logistics REIT (SHED) said it had acquired four assets for a combined £28.6 million at a 5.82% average net initial yield.
The purchases, of assets in Leicester, Northampton, Dundee and Sheffield, were funded from company's recently completed a £250 million equity raise. The shares dipped 0.7% to 179.8p.
Supermarket property investor Supermarket Income REIT (SUPR) said it had acquired a Tesco (TSCO) supermarket in Sheffield, Yorkshire, for £73.2 million.
The purchase price, it added, represented a net initial yield of 4.5%.
The store was developed for Tesco in 2011 and occupied a seven-acre site comprising an 88,000 square foot net sales area supermarket, a 12-pump petrol filling station and 640 car parking spaces. The shares dipped 0.4% to 121.5p.
EARNINGS UPGRADE
Shares in creative services provider to the global video games industry Keyword Studios (KWS:AIM) bucked the general market weakness and surged 7% to £26.90 after the company said revenues and profit was now expected to be above market expectations.
The company said full year revenue for 2021 would be at least €505m, up 35% year-on-year, and adjusted pre-tax profit in excess of €85m or up +55% year-on-year.
Momentum is expected to continue resulting in revenues and profit for 2022 to be at the upper end of analysts’ consensus forecasts.
According to data provided by the firm, current forecasts are for 2021 revenues of €500 million and adjusted pre-tax profit of €79 million.
A list of FTSE100 index movers can be seen here
