👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Zodiac Aerospace rockets after Safran bid, European shares retreat

Published 19/01/2017, 10:20
© Reuters. Traders work at their desks in front of the German share price index DAX board in Frankfurt
UK100
-
RMV
-
MONY
-
AD
-
ZODC
-
SAF
-
GTO
-
INGC
-
STOXX
-
IDSI
-
SXEP
-

By Kit Rees

LONDON (Reuters) - European stocks dipped on Thursday, though Zodiac Aerospace's (PA:ZODC) shares surged after a takeover offer by France's Safran (PA:SAF) and Moneysupermarket.com (L:MONY) also jumped after it reported strong results.

Zodiac Aerospace (PA:ZODC) rocketed 21.7 percent after Safran offered $9 billion to buy the aircraft seat manufacturer. Shares in Safran gained 1.9 percent.

"On a stand-alone financial basis, the acquisition of Zodiac appears pretty attractive, in our view. We venture (to suggest) the planned special dividend may also lend near-term support to the Safran share price," Sandy Morris, equity analyst at Jefferies, said in a note.

Earnings boosted shares in Moneysupermarket.com (L:MONY) by 6.6 percent to their highest level since March 2016 after the price comparison website reported better-than-expected fourth quarter and full year revenues. [nL5N1F9251

Dutch-Belgian food retailer Koninklijke Ahold Delhaize (AS:AD) also rose, up 3.2 percent after posting strong fourth quarter sales figures.

Royal Mail's (L:RMG) results were received less enthusiastically, its shares falling 6.4 percent and weighing on the blue chip FTSE 100 (FTSE) index, which dropped 0.7 percent. [nL1N1F90BJ]

Analysts flagged further weakening in Royal Mail's UK letters business as a concern.

The pan-European STOXX 600 (STOXX) index was down 0.4 percent in choppy trade. A 1.3 percent fall in oil stocks (SXEP) also weighed.

Downgrades were a drag, weighing on Gemalto (AS:GTO), Ingenico (PA:INGC) and Rightmove (L:RMV), which all fell between 3 to 3.8 percent.

"We're ... entering an earnings season, and I don't think it's going to be necessarily one of the strongest ones. I think we're going to see a continuation of the one that we had last quarter, which was very patchy for many industries," said Ken Odeluga, market analyst at City Index.

A meeting of the European Central Bank later in the day was also in focus for investors. The ECB is expected to keep policy unchanged.

© Reuters. Traders work at their desks in front of the German share price index DAX board in Frankfurt

Overnight, Federal Reserve Chair Janet Yellen signalled that the U.S. central bank was poised to pursue a path of steady interest rate hikes.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.