WINNERS & LOSERS SUMMARY: MJ Gleeson Sinks As CEO Harrison Departs

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main ...

Alliance News 10 June, 2019 | 10:34AM
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LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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Antofagasta, up 2.4%, Anglo American up 1.6%, Rio Tinto up 1.3% and Glencore up 1.0%. The miners were among the blue-chip risers amid better-than-expected trade data from China. China's exports grew 1.1% in May after falling 2.7% in April, according to customs data. Analysts had expected a 3.8% decline. "The underlying factor supporting the morning's trade is Chinese data showing the country's exports managed to increase in May despite the US trade tariffs. Concerns that the Sino-US trade war will eventually lead to a slowdown in China's economy have been eroding the markets for months and the data will go some way to alleviate those fears," said City Index analyst Fiona Cincotta.
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FTSE 100 - LOSERS
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Ferguson, down 5.0%. The heating and plumbing products supplier reported earnings growth in the third quarter of its current financial year. Ferguson reported revenue for the three months to the end of April of USD5.27 billion, up 6.2% from USD4.97 billion reported for the same period a year prior. On an organic basis, revenue climbed by 2.3%. Trading profit, which excludes exceptional items and amortisation of acquired intangible assets, rose 2.3% to USD359 million form USD351 million year-on-year. Geographically, in the US, revenue improved by 3.3% on an organic basis. In the UK, like-for-like revenue growth was 2.8% in the quarter. "A slowdown in growth has given plumbing products group Ferguson a soaking. Its third-quarter organic revenue growth rate has slowed to 2.7% from 6.5% at the half year stage. This is worse than the company's guidance in March for a reduction in growth to 3% to 5%," said AJ Bell's Russ Mould.
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FTSE 250 - WINNERS
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Playtech, up 2.8%. Jefferies started coverage on the gaming and financial trading technology provider with a Buy rating.
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FTSE 250 - LOSERS
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Woodford Patient Capital Trust, down 4.2%. The trust said the performance of its investment portfolio has been unaffected by the suspension of fund withdrawals at another Woodford equity fund. Fund manager Neil Woodford on June 3 suspended fund redemptions from his flagship equity income fund - the LF Woodford Equity Income Fund - as the fund's underperformance resulted in significant outflow of investors. The equity fund is managed by Woodford Investment Management, which also manages Woodford Patient Capital Trust. Since Monday of last week, the day on which withdrawals were suspended at Woodford Equity Income Fund, shares in Woodford Patient Capital Trust have lost more than 20% in value. Woodford Patient Capital Trust, in response to the share price slide, said it is pleased with the operational progress of its portfolio companies, which the board believes continue to have the potential to deliver attractive returns, in line with the long-term mandate of the company.
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OTHER MAIN MARKET AND AIM - WINNERS
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Agronomics, up 27% at 7.0 pence. The life sciences sector investor said it intends to raise GBP4.5 million via an equity issue to fund investment opportunities within the alternative food sector, in line with the company's new investment policy. Agronomics, which was formerly called Port Erin Biopharma Investments, expects to issue new new ordinary shares at 5.0 pence per share. Agronomics said it expects Non-Executive Director Jim Mellon to participate in the equity fundraise to maintain his existing shareholding in the company of 29%. It also expects Non-Executive Chair Richard Reed and Non-Executive Director David Giampaolo to participate in the fundraise.
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Thomas Cook Group, up 11%. The troubled travel company confirmed it is in discussions with Fosun International over a potential offer for the Thomas Cook tour operator business. Fosun, a Hong Kong-listed company and Thomas Cook's largest shareholder, has made a "preliminary approach". Fosun's stake in the UK leisure travel company is 18%. "There can be no certainty that this approach will result in a formal offer. However, the board will consider any potential offer alongside the other strategic options that it has, with the aim of maximising value for all its stakeholders," Thomas Cook said. Sky News reported on the possible acquisition on Saturday. It said Fosun is working with bankers at JPMorgan on the potential offer.
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OTHER MAIN MARKET AND AIM - LOSERS
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Gunsynd, down 28% at 0.037p. The natural resources-focused investment company said it has raised GBP500,000 in gross proceeds to make progress on potential investment opportunities. Gunsynd has issued 1.35 billion shares at 0.037p per share. Gunsynd Chair Hamish Harris said: "The recent movement in the share price has allowed us to raise money on a far less dilutive basis to shareholders. Not only that but it has increased the opportunities within our own portfolio, not least with respect to the Madagascar oil and gas licence. Rather than being heavily diluted by third-party investors, we can now look at a wider range of options with respect to progressing work on the block".
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MJ Gleeson, down 11%. The urban regeneration and land development company announced the immediate departure of Chief Executive Officer Jolyon Harrison, who joined the firm in July 2012. MJ Gleeson said Harrison stepped down due a dispute over pay and succession. The company appointed former Keepmoat Homes chief executive James Thomson as interim chief executive officer. In addition, Peel Hunt cut the stock to Reduce from Hold.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Woodford Patient Capital Trust 27.43 GBX -4.11
Agronomics Ltd 7.25 GBX -1.36 -
Playtech PLC 299.36 GBX 5.30 -
Gunsynd PLC 0.83 GBX 0.00 -
MJ Gleeson PLC 722.87 GBX -0.43 -
Thomas Cook Group PLC
Ferguson PLC 6,372.00 GBX -0.16

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