Weekly review

The FTSE 100 ended the Good Friday-truncated week up 121.13 points, or 1.59%, closing at 7,741.56 on Thursday.

Equity view

Ferrexpo more than doubled iron ore pellet production in the first quarter, driven by an improvement in the supply of electricity to operations in Ukraine, which enabled the restart of a second pelletiser line in late February 2023. Production for the three months to March was 0.90 million tonnes compared with 0.42 million tonnes in the prior quarter, but still 65% lower year on year.

Octopus Renewables Infrastructure Trust said on Thursday that it has agreed to invest up to £5m into HYRO, a new green hydrogen joint venture between ORIT, Sky and Renewable Energy Systems (RES). HYRO has been established to develop green hydrogen electrolysis projects in England, Scotland and Wales for industrial offtake/consumption.

Gear4music warned on full-year profits on Thursday as it pointed to weaker consumer demand. In an update for the 12 months to the end of March, the company said revenues and profits in February and March were impacted by weaker consumer demand. As a result, it now expects earnings before interest, tax, depreciation and amortisation of between £7.3m and £7.7m, down from £11m in FY22 and £7.8m in FY20.

Recruitment firm Robert Walters struck a cautious note on Thursday, despite first quarter fee income nudging higher. The London-listed firm said net fee income in the three months to 31 March rose 4% to £102.4m. On a constant currency basis, net fee income was flat.

Technology platform operator THG has struck a new 10-year strategic partnership with beauty e-commerce retailer Maximo Group. THG said on Thursday that the partnership will initially focus on re-platforming Maximo's All Beauty and Fragrance Direct websites to its Ingenuity platform, and highlighted that THG Ingenuity will also become Maximo's "key UK operational partner", providing warehouse and fulfilment services from the second quarter of 2023.

Ladbrokes owner Entain said on Wednesday that it has agreed to buy sports media business 365scores for up to $160m (£128m). It said 365scores is one of the world's leading scores and sports media companies, providing scores and sports information, editorial and social content, as well as sports-focused free-to-play games.

Hilton Foods posted a drop in full-year profit on Wednesday as it announced the appointment of a new chief executive. In the 52 weeks to 1 January 2023, adjusted pre-tax profit fell 17.4% on the year to £55.5m, while IFRS pre-tax profit was 37.5% lower at £29.6m and adjusted operating profit dipped 3.3% to £71.1m. Hilton pointed to challenges in its UK seafood business, including the impact of unprecedented inflation levels, with price recovery taking longer than anticipated.

Investment firm HICL Infrastructure has struck an agreement to acquire a minority equity position in Altitude's fibre-to-the-home platform. HICL said on Wednesday that the acquisition will be accretive to its key portfolio metrics, enhance portfolio diversification and improve the earnings profile of the company. Following completion, the investment will represent approximately 2% of HICL's portfolio, by value.

QinetiQ Group announced the renewal of its Maritime Strategic Capability Arrangement (MSCA) with the Submarine Delivery Agency on Wednesday, for a further 10 years. The FTSE 250 company said the contract would be worth £259m, and included an option for an additional five-year extension.

Real estate investment trust UK Commercial Property REIT posted increased EPRA earnings in 2022 despite seeing net asset values decline. UK Commercial Property said EPRA earnings per share had increased 19% to 3.15p, leading it to up dividends by 11% to 3.25p.

High performance polymer solutions company Victrex said on Tuesday that chief commercial officer and executive director Dr Martin Court plans to retire after 10 years with the group. He will retire from the board after the September 2023 board meeting and will remain with the company until the end of December "to support a smooth transition".

Digital 9 Infrastructure moved to reassure investors on Tuesday after continued volatility in its share price. Shares in the investment firm, which specialises in the infrastructure used to run and manage the internet, have lost 27% over the last month, and 30% in the year to date.

Over-50s specialist product and service provider Saga reported revenue of £581.1m in its preliminary results on Tuesday - a 54% increase year-on-year. The London-listed company’s underlying profit before tax for the 12 months ended 31 January totalled £21.5m, swinging from an underlying loss before tax of £6.7m in the 2022 financial year.

Ophthalmology-focused bio-pharmaceutical company OKYO Pharma said on Tuesday that it has applied to delist from the London Stock Exchange. "The company has decided to request the voluntary cancellation of listing as the volume of trading of the ordinary shares on the main market is negligible and does not justify the associated costs," it said.

FD Technologies reported 12% growth in revenue in a full-year trading update on Tuesday, to £296m, despite a strengthening dollar against sterling in the second half. The AIM-traded company said group EBITDA was expected to total £35m for the year ended 28 February, with strong performances at KX and First Derivative offset by weak demand at MRP.

Hammerson said it had sold its 25% stake in Italie Deux, a shopping centre in central Paris, and all of a separate extension for €164m to IKEA owner Ingka Centres. This sale represents a 4% discount to December 31 book value and a net equivalent yield of 5.0%, Hammerson said, adding that the cash would be used to strengthen its balance sheet and reduce net debt.

Low-cost airlines Wizz Air and Ryanair have both reported strong rises in March passenger traffic. Wizz Air carried 4.26 million passengers, representing a 72.3% increase compared to March 2022, at a load factor of 92.2%, up 5.00 percentage points.

The UK government has extended plans to sell down its stake in NatWest Group. UK Government Investments (UKGI), which manages the government’s 41.5% shareholding in the lender, first announced plans to start slowing selling down its stake in July 2021.

Intertek said on Monday that it has agreed to buy Controle Analítico, a Brazilian provider of environmental analysis with a focus on water testing, for an undisclosed sum. It noted that in Brazil, legislation aimed at providing at least 99% of the population with safe drinking water and 90% of all in-country households with sanitation services by the year 2033 is expected to require around $128bn of investment this decade.

Greencoat UK Wind said on Monday that it has agreed to buy Dalquhandy wind farm from BayWa for around £50m. Dalquhandy is a 42MW wind farm located near Coalburn in South Lanarkshire. It is adjacent to Douglas West wind farm, and comprises 10 Vestas V136 4.2MW turbines. The wind farm benefits from a 10-year fixed price power purchase agreement with BT for 80% of its output.

Economic news

The UK construction sector slowed last month, a closely-watched survey showed on Thursday, as higher borrowing costs hit residential demand. The S&P Global CIPS UK construction purchasing managers' index came in at 50.7 in March, down notably on February’s 54.6 although it remains above the neutral 50.0 threshold. A reading above 50.0 indicates growth, while one below it suggests contraction.

UK house prices increased for a third consecutive month in a row in March, according to data released by mortgage lender Halifax on Thursday. House prices rose by 0.8% from February, taking the average sale price to £287,880 in March.

The UK government has suspended meetings with the Confederation of British Industry, after allegations of sexual misconduct by staff at the business lobby group. Engagement between Whitehall departments and the CBI had been “paused” pending the outcome of an investigation into a claims of rape, sexual harassment and drug-taking.

Activity in the UK services sector grew for the second month in a row in March, according to a survey released on Wednesday. The S&P Global/CIPS services purchasing managers’ index edged down to 52.9 from 53.5 in February but remained above the 50.0 level that separates contraction from expansion.

UK car registrations grew for the eighth consecutive month in March, according to industry data released on Wednesday. Registrations rose 18.2% last month on an annual basis, said the Society of Motor Manufacturers and Traders (SMMT), with the increase boosted by large fleet sales, up almost 50%, as supply chain challenges slowly continue to ease.

The Confederation of British Industry said on Tuesday that it has temporarily paused its external programme of events, following fresh allegations of sexual misconduct. The CBI said in a brief statement: "In light of the very serious allegations that are currently subject to independent investigation, the CBI has decided to temporarily pause its external programme of events, including the annual dinner on 11 May.

The UK’s manufacturing sector faltered last month, a closely-watched survey showed on Monday, as demand softened. The latest seasonally-adjusted S&P Global CIPS UK manufacturing purchasing managers’ index eased to 47.9 in March from February’s seven-month high of 49.3. It was nominally below both the flash estimate and consensus of 48.0.

UK water regulator Ofwat proposed approving 31 investment schemes on Monday, saying they would benefit both customers and the environment. The proposed investment of around £1.6bn would be executed over the next two financial years, from 2023 to 2025.

International events

The US jobs market was a tad tighter than previously thought, revised weekly jobless claims figures showed. According to the US Department of Labor, in seasonally adjusted terms the number of initial unemployment claims fell by 18,000 during the week ending on 1 April to reach 228,000.

Job cut announcements in the States continued rising last month, one of the country's largest staffing companies said. Companies based in the US announced 15% more job reductions in March than one year before to reach 89,703, according to Challenger.

Eurozone construction activity contracted for the eleventh consecutive month on the back of a weaker housing market, according to a widely read survey published on Thursday. S&P Global's index fell to 45.0 in March from 47.6 in February, The decline was the strongest seen in 2023 to date and "sharp overall".

Activity in China’s services sector grew at the fastest pace in two and a half years in March, according to data released on Thursday. The Caixin services purchasing managers’ index rose to 57.8 from 55.0 in February, coming in ahead of expectations for it to be unchanged. This marked the third increase in a row and the fastest rate of expansion since November 2020.

German industrial production reported a sharper than expected rise of 2% in February against the previous month, driven by vehicle manufacture, the federal statistical office said on Thursday. Analysts had forecast a slight increase of 0.1%. The statistics office also revised January’s figure to a 3.7% increase, up from 3.5%. Year-on-year, industrial production rose 0.6% in February.

A closely followed gauge of services sector activity in the States slowed sharply last month. The Institute for Supply Management's services sector Purchasing Managers' Index fell from a reading of 55.1 in February to 51.2 for March.

Private sector hiring in the US slowed last month, the results of a survey revealed. According to consultancy ADP, businesses in the States added 145,000 staff in March.

The economic recovery in the eurozone continued to gather pace in March, although the picture was mixed across countries, according to a survey released on Wednesday. S&P Global’s composite output index rose to a 10-month high of 53.7 in March from 52.0 in February. This was below the preliminary estimate of 54.1 but marked the third month in a row that it came in above the 50.0 mark that separates contraction from expansion.

New Zealand’s central bank announced a bigger-than-expected rate hike on Wednesday. The Reserve Bank of New Zealand said it was lifting rates by 50 basis points to 5.25%. Analysts had been expecting a 25 bps hike.

German factory orders surged by a surprising 4.8% in February against a 0.5% rise in the prior month, according to official data released on Wednesday. Economists had forecast a 0.3% increase. According to the federal statistics agency, new orders in the capital goods sector jumped by 7.3% in February, the third increase in a row, while intermediate goods orders rose 1.3% and consumer goods 1.9%.

The US jobs market eased a bit more in February, the results of a closely followed survey showed. According to the Department of Labor, in seasonally adjusted terms, job openings dropped at a month-on-month pace of nearly 6.0% to reach 9.931m - marking the first print below 10.0m since May 2021.

The Reserve Bank of Australia stood pat on interest rates on Tuesday following 10 hikes. Rates were kept at 3.6%, in line with consensus expectations. Bank Governor Philip Lowe said the decision follows a cumulative increase in interest rates of 3.5 percentage points since May last year.

Reporting by Sharecast.com staff and contributors.