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London midday: Stocks turn a touch lower despite M&A flurry, vaccine hopes

By Michele Maatouk

Date: Monday 14 Sep 2020

London midday: Stocks turn a touch lower despite M&A flurry, vaccine hopes

(Sharecast News) - London stock had turned a touch weaker by midday on Monday despite a flurry of M&A news and Covid-19 vaccine hopes.
The FTSE 100 was down 0.2% at 6,017.89, reversing earlier gains, while the pound was up 0.6% at 1.2867 as MPs prepare to debate the Internal Market Bill.

IG analyst Joshua Mahony said: "Today looks set to be a rocky road for the pound, as the government seeks to push through a bill which will break international law and threaten the prospect of negotiations with just over three-months left. With many MPs seeking to push back against the vote even taking place later today, there is a risk that the proposal does little beyond hindering trust with the EU as we come into the final stretch of negotiations."

The move lower in equity markets came despite a slew of M&A news and confirmation that AstraZeneca and Oxford University were resuming their Covid-19 vaccine trials in the UK.

In deal news, Japan's SoftBank said it had agreed to sell Arm Holdings to Nvidia for $40bn, just four years after buying the chipmaker. SoftBank will become Nvidia's largest shareholder after the Japanese group receives $21.5bn in common stock and $12bn in cash.

Investors were also digesting reports that Oracle has beaten rival Microsoft in negotiations for the US operations of ByteDance's TikTok.

Mahony said the news "does help ease friction between the US and China, yet there will be questions over just how much data remains available to the main entity".

Meanwhile, Gilead Sciences said over the weekend that it had agreed to buy biotech company Immunomedics in a $21bn deal. Gilead will pay $88 per share in cash for Immunomedics, which will strengthen its cancer drug portfolio.

Shares of security services firm G4S surged after privately-owned Canadian rival GardaWorld announced a 190p per share possible offer valuing the company at £2.96bn.

Euronext confirmed that it has made a non-binding offer to London Stock Exchange to buy Borsa Italiana. The offer was made in partnership with Italian state lender Cassa Depositi e Prestiti (CDP) and Intesa Sanpaolo.

Away from M&A, pub group Wetherspoons was under pressure after it emerged that 66 members of staff have tested positive for the coronavirus across 50 of its pubs.

Online supermarket Ocado was a high riser a day ahead of the release of its third-quarter trading statement.

Market Movers

FTSE 100 (UKX) 6,017.89 -0.24%
FTSE 250 (MCX) 17,626.01 0.40%
techMARK (TASX) 3,831.84 0.10%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 137.70p 7.06%
Ocado Group (OCDO) 2,358.00p 4.06%
BAE Systems (BA.) 515.80p 1.54%
Informa (INF) 401.60p 1.39%
Compass Group (CPG) 1,291.00p 1.37%
Bunzl (BNZL) 2,399.00p 1.31%
GVC Holdings (GVC) 885.40p 1.30%
Smurfit Kappa Group (SKG) 2,930.00p 1.24%
Intertek Group (ITRK) 6,208.00p 1.21%
Burberry Group (BRBY) 1,567.50p 1.13%

FTSE 100 - Fallers

Fresnillo (FRES) 1,266.00p -6.36%
Polymetal International (POLY) 1,938.50p -3.51%
Homeserve (HSV) 1,253.00p -2.34%
Rolls-Royce Holdings (RR.) 205.20p -2.29%
Intermediate Capital Group (ICP) 1,230.00p -2.15%
Hikma Pharmaceuticals (HIK) 2,628.00p -1.68%
M&G (MNG) 150.25p -1.64%
Whitbread (WTB) 2,276.00p -1.60%
Persimmon (PSN) 2,489.00p -1.58%
Barratt Developments (BDEV) 498.30p -1.56%

FTSE 250 - Risers

G4S (GFS) 178.60p 22.41%
Petropavlovsk (POG) 38.45p 4.06%
Law Debenture Corp. (LWDB) 520.00p 3.59%
OneSavings Bank (OSB) 303.60p 3.34%
AVI Global Trust (AGT) 757.00p 2.85%
Morgan Sindall Group (MGNS) 1,254.00p 2.79%
Serco Group (SRP) 142.00p 2.75%
Euromoney Institutional Investor (ERM) 882.00p 2.56%
Sirius Real Estate Ltd. (SRE) 76.20p 2.56%
Network International Holdings (NETW) 403.60p 2.44%

FTSE 250 - Fallers

Petrofac Ltd. (PFC) 135.50p -4.27%
Hammerson (HMSO) 23.10p -4.11%
Rank Group (RNK) 118.20p -3.90%
Wetherspoon (J.D.) (JDW) 895.00p -3.40%
Royal Mail (RMG) 225.80p -3.38%
Cineworld Group (CINE) 50.36p -3.15%
Safestore Holdings (SAFE) 768.50p -2.97%
FirstGroup (FGP) 41.76p -2.93%
Workspace Group (WKP) 516.00p -2.73%
Mitchells & Butlers (MAB) 150.80p -2.46%


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