Electra posts strong returns, Marshalls confident of meeting expectations
London open
The FTSE 100 is expected to open up six points on Friday, after closing up 0.42% at 6,931.55 on Thursday.
Stocks to watch
Electra Private Equity posted its preliminary results for the year to 30 September on Friday, with a net asset value per share of 5,149p, representing a total return of 35% for the year. The FTSE 250 firm’s share price was 4,310p, a total return of 36% for the year, compared with 17% for the FTSE All-Share Index. Its investment return was £751m, or 46% on the opening portfolio.
International originator, active investor and manager of infrastructure projects, John Laing Group, posted a pre-close update for the year to 31 December on Friday. The FTSE 250 firm said primary Investment activity remained strong in each of its three geographical regions of Asia Pacific, North America and Europe - including the UK. Total investment commitments to date were £181m, in line with guidance for 2016, while total realisations agreed to date in 2016 were £255m.
Landscape products group Marshalls said on Friday that it is confident of meeting its expectations for 2016 as it reported a rise in revenue for the 11 months to 30 November. Revenue grew 3% to £375m, with sales in the domestic end market, which represent around 31% of group sales, up 10% compared with the prior year period. Marshalls said UK revenue since the half year is up 4% compared with 2015 and was particularly strong in the domestic end market, where sales in the five months to the end of November were 15% higher.
Newspaper round-up
Britain’s final salary pension funds have slashed their ownership of stock-market listed companies to just 7% of their total holdings following a huge shift in recent years to overseas stock markets and government bonds. The move away from owning UK stocks emphasises how dependent Britain’s estimated 13.5 million past and present final salary scheme members have become on returns from shares in US, continental and emerging market companies to generate a retirement income. – Guardian
The British economy has received a post-Brexit vote of confidence from one of America’s best known companies after McDonald’s announced it will move its non-US operations to London, abandoning its base in Luxembourg. The fast-food giant has chosen the UK to establish a new holding company to collect hundreds of millions of pounds a year in royalties from its international franchise operations. – Telegraph
Businesses plan to cut back on investment and wages next year to protect profits after Brexit, according to the Institute of Chartered Accountants in England and Wales. In its latest economic forecast, built on the views of corporate clients, the ICAEW argues that investment will fall sharply and pay will expand at its slowest pace in four years as unemployment creeps up. - The Times
The European and US authorities are examining Glencore’s Rosneft deal for a possible violation of sanctions against Russia, an American official has said. Glencore and Qatar are in advanced talks to buy a €10.2 billion stake in the state-controlled oil producer, from the Russian government. Rosneft, which produces one barrel in every 20 globally, was put under economic sanctions by the EU and the US in 2014 in response to Russia’s actions in Ukraine. – The Times
US close
US stocks ticked higher on Thursday following the prior day's record gains, while the European Central Bank announced it will extend its quantitative easing programme but taper its purchases after March 2017.
The Dow Jones Industrial Average rose 0.33% to 19,614.81 points, the S&P 500 was up 0.22% to 2,246.19 points and the Nasdaq 100 gained 0.15% to 4,859.19 points at the close.
In commodity markets, oil prices advanced ahead of a Saturday meeting in Vienna between OPEC and non-OPEC members which may result in a further cut in production.