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Basic Materials
Small Cap
Market Cap £195.1m
Enterprise Value £218.5m
Revenue £85.4m
Position in Universe 807th / 1836

UPDATE 1-Financials support FTSE as markets tread water ahead of Fed

Wed 13th December, 2017 5:04pm
* FTSE 100 ends little changed * Financials lead, housebuilders fall ahead of interest rate rise * Serco shoots up after rosy profit outlook * Dixons Carphone up 8.5 pct on strong Black Friday (Adds details, closing prices) By Helen Reid LONDON, Dec 13 (Reuters) - British shares steadied on Wednesday as investors' anticipation of a rate rise from the U.S. Federal Reserve drove financial stocks higher while high-yielding consumer stocks suffered. The FTSE 100 .FTSE and mid-cap .FTMC indices ended less than 0.1 percent lower, outperforming the broader European market which fell ahead of the rate decision. The prospect of rising rates in the United States drove sector performance on Wednesday, boosting financials while dragging on housebuilders and consumer stocks. "The market does seem to have rotated a little bit into HSBC and financials. It's a little bit of an inflation trade coming back on with a return to the banks," said Colin McLean, CEO of SVM Asset Management in Edinburgh. Financials were the best performers, led by HSBC HSBA.L , whose international footprint makes it easier for it to benefit from higher U.S. rates. The stock was up 1.5 percent and the strongest boost to the index. Barclays BARC.L also gained 1.6 percent. Among fund managers, retail platform Hargreaves Lansdown HRGV.L made strong gains, up 4.4 percent at the top of the FTSE, while Schroders SDR.L rose 1.6 percent. Mid-cap fund management stocks Jupiter JUP.L and Rathbone Brothers RAT.L also climbed. Asset managers also stand to gain from higher interest rates incentivising saving. Housebuilders, which have benefited from historically low interest rates, were broadly lower. Barratt Development BDEV.L , Taylor Wimpey TW.L and Persimmon PSN.L all fell. Ashtead AHT.L fell back from the previous session's rally, down 5.4 percent at the bottom of the FTSE after top management offloaded shares in the industrial equipment hire group. Regulatory filings showed the CEO, CFO and COO all sold shares on Tuesday. urn:newsml:reuters.com:*:nL3N1OD35V A profit warning from Innogy IGY.DE based on poor performance in its British retail energy arm npower weighed on German utilities as well as Britain's Centrica CNA.L , down 3.7 percent. Serco SRP.L jumped 6.4 percent after the outsourcer reported a much rosier outlook for 2018 profit, saying it would come in at the top end of its range. urn:newsml:reuters.com:*:nL8N1OD177 "We note that with the provisions utilisation continuing as expected, free cash generation is set to turn positive through 2018 - at last a positive and addressable valuation metric emerges," wrote ShoreCap analyst Robin Speakman. "In sum, encouraging, but still with tough markets evident," he added, reiterating the broker's 'hold' recommendation. Dixons Carphone DC.L jumped 8.5 percent after reporting strong Black Friday trading and maintaining the first-half dividend. These positives outweighed a slump in profits caused by weaker mobile phone markets. urn:newsml:reuters.com:*:nL8N1OD14R In small-caps, shares in material technology firm Zotefoams ZTF.L were boosted 14 percent after the company announced a partnership with Nike NKE.N to supply it with foam technology. The gap between valuations of the FTSE 100 and U.S. benchmark S&P 500 has widened strongly since the Brexit vote, analysts at Man Group found. While this is partly down to U.S. stocks becoming more expensive, it could also reflect investors' Brexit anxiety, they said, adding the trend could reverse if last Friday's negotiations breakthrough was a turning point. "Certainly international investors have been shunning the FTSE until Brexit is sorted. Money will come back when that happens," said SVM's McLean. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Valuation differential between FTSE 100 and S&P 500 http://reut.rs/2ykZ91V ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Danilo Masoni, Editing by Matthew Mpoke Bigg and Ken Ferris) ((Helen.Reid@thomsonreuters.com; +44 20 7542 0402;)) (( For related prices, Reuters users may click on - * UK stock report .L FTSE index: 0#.FTS6 techMARK 100 index: .FTT1X FTSE futures: 0#FFI: Gilt futures: 0#FLG: Smallcap index: .FTSC FTSE 250 index: .FTMC FTSE 350 index: .FTLC Market digest: .AD.L Top 10 by vol: .AV.L Top price gainers: .NG.L Top % gainers: .PG.L Top price losers: .NL.L Top % losers: .PL.L * For related news, click on - * UK hot stocks: [HOT and GB] Wall Street: .N Gilts report: GB/ Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks: .T HK stocks: .HK Sterling report: GBP/ Dollar report: USD/ * For company prices, click on - * Company directory: UKEQ By sector: FTAX * For pan-European market data, click on - * European Equities speed guide................ EUR/EQUITY FTSE Eurotop 300 index........................... .FTEU3 DJ STOXX index................................... .STOXX Top 10 STOXX sectors........................ .PGL.STOXXS Top 10 EUROSTOXX sectors................... .PGL.STOXXES Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S Top 25 European pct gainers.................... .PG.PEUR Top 25 European pct losers..................... .PL.PEUR )) Keywords: BRITAIN STOCKS/
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