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HGG - Henderson News Story

233.7p -1.1  -0.5%

Last Trade - 26/05/17

Large Cap
Market Cap £3.31bn
Enterprise Value £2.70bn
Revenue £1.69bn
Position in Universe th / 1826

FTSE ends at one-month high but May's energy pledge hits Centrica, SSE

Tue 9th May, 2017 5:24pm
* FTSE 100 up 0.6 pct 
    * Centrica, SSE dip as investors eye Conservative campaign 
    * Micro Focus sinks as buyout target's revenue falls 
    * Mining shares underpin gains; utilities fall back 
    * Asset manager Henderson gains as UBS ups to 'buy' 
 (Adds closing prices) 
    By Helen Reid 
    May 9 (Reuters) - Energy companies Centrica and SSE were 
among the worst-performing stocks on Britain's FTSE on Tuesday, 
after British Prime Minister Theresa May vowed to cap energy 
prices if she was re-elected in June.  
    While the blue-chip index  .FTSE  ended up 0.6 percent at 
its highest level since early April, big declines stole the 
    May pledged to introduce a ceiling on domestic energy prices 
that would cut tariffs for around 17 million families. She said 
energy regulator Ofgem would be ordered to cap the costs of 
standard variable tariffs, the package used by two-thirds of 
customers in Britain.  urn:newsml:reuters.com:*:nL1N1IB04K 
    Centrica  CNA.L  and SSE  SSE.L  both fell 1.2 percent, 
continuing a decline that began when the Conservatives first 
hinted at the policy, which could erode the firms' margins. 
    "The government has stated that two-thirds of customers are 
on the higher 'standard' rates, and clearly if the cap is below 
this level this will hit margins directly," said Edward Park, 
director of the investment committee at Brooks Macdonald.  
    "But the government will need to be careful not to cause 
excessive pressure on the energy market as capex in areas such 
as 'smart meters' are also viewed as helping retail customers 
make informed decisions," he added. 
    The cap could cost Centrica up to 200 million pounds, Neil 
Wilson of ETX Capital estimated. 
    Micro Focus  MCRO.L  fell 5.6 percent to the bottom of the 
FTSE after it flagged a 10 percent revenue drop at Hewlett 
Packard Enterprise  HPE.N , the company it's in the process of 
acquiring for $8.8 billion. 
    Mining companies Glencore  GLEN.L  and BHP Billiton  BLT.L  
both rose more than 2 percent as the price of copper edged up 
from sharp overnight losses.  urn:newsml:reuters.com:*:nL4N1IB18I 
    Ferrexpo  FXPO.L  and Kaz Minerals  KAZ.L  led gains on the 
mid-caps as well, up 4.9 and 2.7 percent respectively.  
    Asset manager Henderson  HGGH.L  benefited from a UBS 
upgrade and rose to join the top mid-cap gainers, up 2.3 percent 
and on track for its best day in six months. UBS analysts see 
its acquisition of U.S. fund manager Janus as "transformational" 
for the firm. 
    "Significantly enhanced scale, distribution and 
diversification see it better equipped to deal with ongoing 
headwinds from a gradual global shift to passive (management) 
and rising regulatory costs," they said in a note.  
    Meanwhile the broker's downgrade of Card Factory  CARDC.L  
to "neutral" after the shares rallied weighed on the stock, down 
1.2 percent. 
 (Reporting by Helen Reid and Danilo Masoni; Editing by Mark 
 ((Helen.Reid@thomsonreuters.com; +44 20 7542 7748;)) 
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