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FTSE 100 brushes new highs after Apple reassures

Published 03/05/2024, 09:53
© Reuters.  FTSE 100 live: Index brushes new highs after Apple reassures

Proactive Investors -

  • FTSE 100 up 24 points to 8,196
  • Index set new record of 8,205
  • Apple (NASDAQ:AAPL) to rally

Anglo American leads gainers on Glencore approach rumours

Anglo American PLC (JO:AGLJ) jumped to the top of the FTSE 100 risers on reports rivals Glencore PLC (LON:GLEN) was mulling joining a bidding war for the miner.

According to Reuters, Glencore is considering approaching Anglo with the view of taking over the company, though no offers have been made yet.

This would come after BHP Group (LON:BHPB) Ltd’s US$39 billion all-paper offer was rejected by Anglo last week, with sources saying another bid is being considered.

Anglo climbed 3.2% on the news, to top the day’s movers, with the FTSE 100 climbing 24 points to 8,196 in the meantime.

The blue-chip index had notched up yet another record on Friday morning, surpassing the 8,200 mark for the first time ever to reach as high as 8,205.

Rail nationalisation the elephant in the room for Trainline - analysts

Trainline PLC (LON:TRNT) pleased investors after reporting operating profit doubled to £56 million last year on the back of strong growth in Europe, with shares climbing 8.6% in the morning.

However, analysts noted Labour Party proposals to effectively renationalise the UK’s railways still loomed large and housed a potential hit to Trainline.

Indeed, there was “no mention [of the] plan to bring all UK rail franchises back under public ownership should they gain power,” Hargreaves Lansdown’s Steve Clayton pointed out.

Third Bridge analyst Albie Amankona added the plans “could pose a threat to Trainline” in the meantime.

That said, Amankona also noted consumer habits would likely be hard to change following any prospective government move on ticketing, with Shore Cap highlighting Labour suggestions that no changes would be made to sales.

eToro’s Mark Crouch also brushed off concerns over the Labour plans.

“Investors will hope the company’s momentum is not derailed” on the proposal, he acknowledged, but claimed “it’s nothing more than a headline-grabbing slogan” so far.

However, “uncertainty could lay further down the line should it become a reality,” Crouch said.

The morning so far

The FTSE 100 notched up another all-time high after peaking 24 points higher at 8,198 in opening trades.

Apple’s strong quarterly result and subsequent 6% post-market rally in the US infused some optimism into the stock market.

Mining big cap Anglo American plc was the strongest morning riser among the domestics, while Diageo’s appointment of Coca-Cola (NYSE:KO) exec Nik Jhangiani as chief financial officer in place of Lavanya Chandrashekar sent the drinks supplier’s shares 1.3% higher.

Paddy Power-owner Flutter (LON:FLTRF) Entertainment plc was also on the front foot, adding more than 2% to its share price.

Elsewhere in company news, Holiday Inn owner IHG (LON:IHG) reported a global revenue per available room (RevPAR) increase of 2.6% year-over-year, led by a strong performance in the EMEA region.

IHG also said it will be lowering the contributions made by franchisees into the System Fund, which is used to maintain and improve systems crucial for the global operation of IHG hotels, including marketing efforts, booking systems, and loyalty programs, among others.

The revised structure is expected to add $25 million to top-line revenues in 2024. Shares were down 1.4%, with the market seemingly underwhelmed by IHG’s quarterly financials.

Trainline PLC reported a 22% year-on-year increase in net ticket sales, rising from £4.3 billion in financial 2023 to £5.3 billion in financial 2024, with operating profit doubling to £56 million.

Shares in the online ticketing group soared more than 8%.

Diageo chooses former Coca-Cola exec as new CFO

Diageo (LON:DGE) has appointed Nik Jhangiani as chief financial officer in place of Lavanya Chandrashekar, who will step down after three years in the role.

Chandrashekar will also leave the board after six years with the drinks supplier.

Jhangiani is currently CFO at Coca-Cola Europacific Partners (CCEP), the world's largest Coca-Cola bottler with revenues of over €18 billion in 2023, a role he has held since 2016.

Debra Crew, chief executive of Diageo said: "I am delighted that Nik will be joining us. He is a highly experienced CFO with a proven global track-record of generating growth across multiple consumer businesses and industries. Nik's experience and international mindset will make him a strong addition to our leadership team.

"I am grateful to Lavanya for her leadership over the last six years and her contribution as Diageo successfully expanded our business through a global pandemic and delivered major productivity savings.”

Jhangiani said: "I am delighted to be joining Diageo. It is an organisation I have long admired and one of the world's most respected and trusted consumer businesses.

“I look forward to working with my new colleagues to drive value for Diageo's shareholders, and to support the company's strong track record of building and sustaining exceptional brands."

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