UK WINNERS & LOSERS SUMMARY: Saga Surges On Fundraising Plans

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.

----------

FTSE 100 - WINNERS

----------

Fresnillo up 6.3%, Polymetal International, up 2.3%. The gold miners were tracking spot gold prices higher benefitting from a weaker dollar, quoted at USD1,989.44 an ounce Tuesday morning, up from USD1,968.01 late Friday. Midcap peer Hochschild Mining was up 4.0%. "The future looks glittering for gold as the fundamental bullish factors continue falling into place beyond 20220 as the Federal Reserve will remain mute to lower unemployment levels or higher inflation. Hence, there is a tremendous potential for broad-based dollar weakness and higher gold prices well into 2022, suggesting we will be talking gold up for an exceptionally long time," said AxiCorp's Stephen Innes.

----------

Glencore, up 3.4%, Antofagasta, up 1.8%, Anglo American, up 1.2%, BHP, up 1.1%, Rio Tinto, up 1.0%. The miners were higher following positive China economic data. China's manufacturing conditions improved in August, helped by the sharpest increases in output and new orders since the start of 2011, according to data from Caixin. The headline seasonally adjusted purchasing managers' index climbed to 53.1 in August, from 52.8 in July. A number above 50.0 denotes expansion.

----------

FTSE 100 - LOSERS

----------

Rolls-Royce, down 9.8%. Shares were in freefall after the jet engine maker said last week it was looking to sell assets, amid a gaping loss and a warning of "material uncertainties" caused by the coronavirus pandemic. The stock is down 17% over the past week alone.

----------

International Consolidated Airlines Group, down 7.0%. JPMorgan downgraded the British Airways parent to Neutral from Overweight.

----------

FTSE 250 - WINNERS

----------

Dunelm Group, up 2.5%. The home furnishings retailer said its sales in the past two months have been "strong", with the firm benefitting from "pent up" demand following store closures and the timing of its Summer Sale. Sales in July were up 59% year-on-year, while August recorded 24% growth. "This performance reflects the strength of our proposition within a resilient homewares market, positive footfall growth to our mainly out-of-town superstores and continued strong growth in our home delivery offer," Dunelm noted. The retailer also said its year to date performance has been "materially ahead" of the company's initial expectations, but said it is "very difficult" to provide any meaningful guidance on the future outlook. "Dunelm has managed to maintain a healthy rate of sales growth of late, but like all firms it retains an equally healthy dose of caution regarding the next few months. There is a sense that the UK economy, and perhaps the global one too, has escaped disaster by the skin of its teeth, and that the big risk now is that fiscal stimulus will fall away too quickly and leave economies and consumers exposed to the second order effects of higher unemployment and weaker consumer spending," said IG Group's Chris Beauchamp.

----------

FTSE 250 - LOSERS

----------

Wizz Air Holdings, down 6.7%. The central and eastern Europe-focused airline warned capacity may stall at 60% in the third quarter as it noted renewed travel restrictions imposed across Europe and in Hungary. Wizz Air said it expects capacity for the second quarter of the financial year at around 60%. If "mobility restrictions" across the network persist, capacity is likely to remain at around 60% in the third quarter, as opposed to 80% as previously anticipated. It added that its low cost business model is a "significant competitive advantage" against the current backdrop for airlines, and it is confident of emerging as a "structural winner" from the Covid-19 crisis.

----------

OTHER MAIN MARKET AND AIM - WINNERS

----------

Saga, up 35% at 18.33 pence. The over 50s holiday and insurance provider on Sunday said it plans to raise GBP150 million through the issue of shares, adding that former chief executive & chair Roger De Haan plans to invest up to GBP100 million as part of the fundraise. Saga said it plans to launch a GBP150 million equity raise on or around next Thursday, comprising a placing and open offer. The Kent-based company added that de Haan plans to make his investment through the placing of 224 million new shares - around 20% of the company's issued share capital - at 27p each, totalling GBP60.6 million. The share price represents a 98% premium to the Friday closing price of 13.61p. De Haan will also participate in a further placing, raising GBP14.9 million through the purchase of shares at the same price.

----------

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.