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Market Wrap - Midday

AVEVA continues to soar on merger with Schneider

05 September 2017 11:58

Shares in engineering software provider AVEVA (AVV) continued to surge following its announced merger with Schneider Electric's industrial software business.

The stock charged 27.8% higher to £24.54.

AVEVA said the mega merger would result in combined revenue and adjusted earnings before interest, tax and amortisation of approximately £657.5m and £145.8m, respectively.

Elsewhere, the FTSE 100 was flat at 7,403.

Brent crude oil advanced 0.6% to $52.68 per barrel. Copper rallied 1.4% to $6,922 per tonne and gold glittered at $1,332 per ounce.

OVERSEAS MARKETS

The US stock markets were closed on Monday for Labor Day.

In Asia, investor sentiment was subdued with Japan's Nikkei 225 suffering a 0.6% drop to 19,385 this morning as North Korean tensions weighed on the market.

FTSE 250 RISERS AND FALLERS

Halfords (HFD) defied the gloomy performance of the retail industry after posting a 2.7% jump in like-for-like revenues in the 20 weeks to 18 August, sparking a 3.4% rise to 326p.

Housebuilder Redrow (RDW) excited the market on expectations that revenue and profit will continue to rise into 2020 thanks to stronger results, triggering a 3.5% jump in the stock to 642p.

Packaging firm DS Smith (SMDS) was unmoved at 495.6p despite an 'encouraging start' to the year since 1 May 2017. The company reported strong demand for its enhanced packaging solutions with the rate of like-for-like volume growth well ahead of the same period last year.

Media reports suggested that broadband provider TalkTalk (TALK) is considering an exit from its mobile operations, although this did little to advance the shares at 203p.

Ryanair (RYA) kept the good news in the airline sector coming after Wizz Air's strong passenger growth on Monday. The budget airline said traffic grew by 10% to 12.7 million customers in August, while load factor advanced 1% to 97%. Investors marked the stock 1.1% higher to €18.21.

The market overlooked good progress in Stobart Group's (STOB) aviation division thanks to issues in the energy division. The company said delays in commissioning certain third party biomass power stations impacted short term volumes, causing the stock to dip 0.3% to 293.4p.

SMALL CAP RISERS AND FALLERS

Pre-tax losses at gambling firm 888 (888) were in focus, instead of the company's 9% increase in revenue, driven by the casino and sports betting businesses. The shares slipped 1% to 260p. Story provided by StockMarketWire.com

Related Company: AVV

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