UK WINNERS & LOSERS SUMMARY: Cineworld Surges On Additional Liquidity

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

Alliance News 23 November, 2020 | 10:57AM
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(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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International Consolidated Airlines, up 4.2%, Rolls-Royce, up 3.6%. The British Airways parent and jet engine maker were higher on hopes a coronavirus vaccine can be found. AstraZeneca and the University of Oxford said their jointly-developed vaccine against Covid-19 has shown "an average efficacy of 70%" in trials, and up to 90% in one dosage combination. The developments follow news that two other leading vaccine candidates - one by Pfizer and German partner BioNTech and another by US firm Moderna - have been shown to be 95% effective in trials. Conversely, AstraZeneca shares were down 1.7%. "In relative terms one can understand why AstraZeneca's result only triggered a shrug of the shoulders from investors. However, a 70% result is still positive for helping society return to normal and there are significant cost and storage benefits with the AstraZeneca jab," said AJ Bell's Russ Mould.

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BP, up 3.3%, Royal Dutch Shell 'B', up 3.3%, Shell 'A', up 3.2%. The oil majors were tracking spot oil prices higher, quoted at USD45.75 a barrel Monday morning, up from USD44.00 late Friday. "Stocks started the week in green in the early trading. In this still 'risk on' scenario, the oil price is extending its gains. Investors are betting on the efficacy of the vaccine and with it, slowing numbers of coronavirus cases within a few months. These expectations - which of course will need to be confirmed later this winter - come in conjunction with expectations that OPEC+ will renew its current cuts in December," explained analysts at ActivTrades.

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FTSE 100 - LOSERS

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United Utilities, down 1.2%. RBC Capital downgraded the water company to Sector Perform from Outperform.

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FTSE 250 - WINNERS

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Cineworld Group, up 17%. The cinema chain said it has secured "significant additional liquidity", on top of further operational measures which it hopes will deliver "enhanced profitability over the long term". Cineworld has agreed the terms of a new USD450 million three-year non-call facility, which matures on May 23, 2024. After accounting for the new debt facility, Cineworld will have aggregate gross debt financing of USD4.9 billion with a weighted average interest rate of approximately 4.5%. The new debt facility also includes certain financial and operating covenants and entitles the lenders to appoint a board observer. Cineworld has waived all bank financial covenants until June 2022. It has also extended maturity of its USD111 million incremental revolving credit facility to May 2024 from December 2020. Cineworld said it has agreed certain "material abatements" and long term rent deferrals with key landlords, in conjunction with new lease agreements in some circumstances and discussions are continuing in relation to other potential abatements and deferrals. On top of this, the firm noted all new capex programmes are currently on hold.

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Sirius Real Estate, up 5.1%. The German-focused property investor raised its interim dividend amid a rise in income and the value of its portfolio. For the six months to the end of September, pretax profit dropped by 22% to EUR62.2 million from EUR79.7 million a year before, as revaluation gains on investment properties shrank to EUR31.9 million from EUR58.2 million. Operating income for the period grew by 11% to EUR43.9 million from EUR39.5 million, while funds from operations rose by 7.4% to EUR29.1 million from EUR27.1 million. Sirius declared a dividend of 1.82 euro cents per share, up 2.8% from 1.77 cents a year before.

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Ferrexpo, up 4.9%. Bank of America upgraded the iron ore pellet producer to Neutral from Underperform.

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FTSE 250 - LOSERS

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ContourGlobal, down 1.5%. RBC downgraded the power generation firm to Sector Perform from Outperform.

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OTHER MAIN MARKET AND AIM - WINNERS

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Daily Mail & General Trust, up 2.0%. The newspaper publisher reported a sharp drop in annual profit, as the company's Consumer Media unit took a hit from the coronavirus pandemic, but has upped its shareholder payout. For the year to September 30, the media company's pretax profit slumped to GBP52 million from GBP134 million the year before. Revenue fell 10% to GBP1.20 billion from GBP1.34 billion. Adjusted B2B revenue was down 18% year on year at GBP606 million, while adjusted Consumer Media revenue dropped 10% to GBP604 million. DMGT upped it total dividend to 24.1 pence from 23.9p.

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By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Daily Mail and General Trust PLC Class A
Ferrexpo PLC 53.50 GBX 3.08 -
Cineworld Group PLC
United Utilities Group PLC 1,033.13 GBX 0.30
Rolls-Royce Holdings PLC 412.35 GBX 1.64
BP PLC 527.30 GBX 0.19
ContourGlobal PLC
Sirius Real Estate Ltd 95.50 GBX 1.38 -
Royal Dutch Shell PLC B
AstraZeneca PLC 12,004.00 GBX -0.18
International Consolidated Airlines Group SA 178.28 GBX 1.21 -
Royal Dutch Shell PLC Class A 2,898.00 GBX -0.10

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