FTSE 100 Edges Higher, Supported By Rising Oil Prices

0917 GMT - The FTSE 100 rises 0.5% to 7295 points mainly driven by oil and gas company BP due to rising oil prices. "After hitting near 5-month lows on Friday, the FTSE 100 is staging modest gains with BP towards the top of the index as underlying oil prices rise," says Victoria Scholar in a note. BP gains 1.8% while retailer Tesco is up 1.7% as analysts expect a strong 1H performance from the company. Property companies are the biggest losers as U.K. house prices fall, with homebuilders Taylor Wimpey down 3.0% and Persimmon down 2.4%. Data from Rightmove on Monday showed the average house price in the U.K. fell 1.9% in the month to August 12. (miriam.mukuru@wsj.com)

COMPANIES NEWS:

Crest Nicholson Lowers Full-Year Profit View On Worsened Business Conditions

Crest Nicholson lowered its adjusted pretax profit full-year expectation on the back of continuing high inflation and rising interest rates.

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DP Eurasia Plans to File Bankruptcy for Russian Business

DP Eurasia has started the process to file bankruptcy for its Russian business, ending the planned sale process of DPRussia as a going concern and therefore the group's presence in Russia.

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TruFin Gets Private Equity Offer for Vertus Capital Stake Worth GBP3.2 Mln

TruFin has conditionally accepted an offer for its majority shareholding in Vertus Capital from a private equity party worth 3.2 million pounds ($4.1 million).

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Fulcrum Utility to Delist Shares From London's AIM After Widened Pretax Loss

Fulcrum Utility Services will seek to cancel its share listing on London's Alternative Investment Market in order to reduce costs after the group reported a widened pretax loss for fiscal 2023.

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FS Gaming Investments Cuts 888 Holdings Stake to 4.55% From 6.57%

888 Holdings said that FS Gaming Investments has cut its shareholding in the business to 4.55% from 6.57%.

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Thungela Resources Revises Operational Guidance After Profit, Revenue Drop

Thungela Resources narrowed its coal production guidance while changing its cost guidance for the full year after profit and revenue dropped in the first half.

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Gattaca to Launch Further GBP500,000 Share Buyback

Gattaca intends to return up to 500,000 pounds ($636,750) to shareholders through a series of share buybacks.

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Trident Royalties Invests in West African Gold Project

Trident Royalties said it has agreed on an acquisition deal with a group of private royalty holders over a gold project in Mali for up to $5.5 million.

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Ferro-Alloy Shares Plummet on Expected Hit to Full-Year Results

Shares in Ferro-Alloy Resources dropped 21% after the company said it expects its full-year production and financial results to take a hit from delays to concentrate supply and continuing low vanadium prices.

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Tirupati Graphite to Focus on PranaGraf Deal

Tirupati Graphite said it will explore options to combine its business with PranaGraf Materials & Technologies after an initial acquisition couldn't be completed due to regulatory restrictions.

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Sure Ventures Raises GBP200,000 for Investments, Working Capital

Sure Ventures has raised 200,000 pounds ($254,700) via a share placing and will use the money toward investments and for general working capital purposes.

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Polymetal Looks to Sell Russian Assets, FT Reports

-- Polymetal International is aims to sell its Russian business within the next six months, the Financial Times reports.

MARKET TALK:

UK Property Stocks Drop After Crest Nicholson Alert

1027 GMT - U.K. property stocks are among the biggest FTSE 100 fallers after a profit warning from second-tier house-builder Crest Nicholson. FTSE 250-listed Crest forecast annual adjusted pretax profit of about GBP50 million, versus guidance at interim results in June of about GBP73.7m. Summer housing-market trading had worsened amid persistently high inflation and rising interest rates and conditions were unlikely to improve significantly before the end of Crest's financial year in October, the company said. "Economic uncertainty is deterring prospective home-movers," Crest said in a trading update. Crest shares fall 6% and Taylor Wimpey, Persimmon, Berkeley Group Holdings, Barratt Developments and property website Rightmove--which said Monday that average new seller asking prices fell 1.9% this month, the biggest fall in August since 2018--also drop. (philip.waller@wsj.com)

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HSBC Share Weakness Could Offer an Opportunity

1008 GMT - HSBC Holdings' shares have suffered lately despite positive half-year earnings, with economic sluggishness in China dragging the stock, Jefferies says in a note. While weakness in the country looks set to continue, this isn't hampering travel into Hong Kong from the mainland, as well as account openings among non-resident Chinese, they say, noting that the bank's fundamentals remain strong. Given the stock's weakness against the wider European banking index, this could provide a scaling opportunity to buy into the stock, analysts write, adding that their bullish view is sustained by earning surprise and higher capital return prospects. Jefferies reiterates a buy rating on the bank and lifts its target price on London-listed shares to 1000 pence from 930 pence. (elena.vardon@wsj.com)

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CRH 1H Likely to Be Positive as Backdrop Improves

0955 GMT - CRH is expected to report a positive 1H performance on the back of its integrated solutions strategy effectiveness and commercial execution as it could be facing an improved backdrop, Davy Research analysts Ross Harvey and Andrea Collins say in a note ahead of the group reporting earnings on Wednesday. U.S.-based peers have reported better-than-expected 2Q Ebitda, while full-year guidance was raised modestly ahead of expectations, they say. Added to that, competitors referenced a positive outlook for 2H on the back of a stronger pricing environment along with a resilient performance in volumes, the analysts say. Davy anticipates CRH to report 1H Ebitda of $2.3 billion, implying a slight margin improvement consistent with guidance. (michael.susin@wsj.com)

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Ferro-Alloy Resources' Supply Issues Drive Cut to Production Forecasts

0901 GMT - Ferro-Alloy Resources' record-breaking second-quarter production will be followed by a disappointing third quarter after feedstock delays, prompting lowered second-half forecasts, Liberum analysts write in a research note. The London-listed vanadium producer is now expected to produce 313 metric tons vanadium-oxide equivalent in the second half-year, downgraded from 500 tons, the analysts say. "Even so, we continue to expect that full-year 2023 production and financial results should prove significantly better than that achieved in FY22," they say. Liberum keeps a buy rating on the stock, while lowering its price target to 38 pence from 39 pence. The company is a corporate broking client of Liberum. Shares are down 20% at 8.60 pence. (christian.moess@wsj.com)

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Crest Nicholson Puts Market on Alert for Further Profit Warnings From Peers

0854 GMT - Crest Nicholson's profit warning shows the scale of the impact of the housing slowdown on the housebuilding sector, AJ Bell investment director Russ Mould says in a market comment. "The scale of Crest Nicholson's warning may come as a shock to investors given it reported its first-half results just a couple of months ago and this hints at the speed and scale of the deterioration in the market," he says. While shareholders can take solace in the U.K. housebuilder's commitment to its full-year dividend policy for now, this gloomy update "will have set the market on alert for further warnings from its industry peers," Mould says. Shares are down 8% at 178.40 pence. (christian.moess@wsj.com)


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08-21-23 0705ET