FTSE 100 Closes Down 1% as Oil, Mining Stocks -2-

1111 GMT - CMC Markets' better-than-expected dividend shows it is confident about its future profitability, RBC Capital Markets says in a note after the London-listed online-trading platform posted first-half results weighed by subdued markets. The swing to a GBP2 million pretax loss is larger than the GBP1 million loss the broker expected but is explained by an unexpected impairment charge, analyst Ben Bathurst and associate Jude Neanor write. "Despite the loss, the company has announced an interim dividend of 1.0p, which we see as a reflection of confidence in the restoration of profit in 2H," they say, noting that they expect profit to restore to a higher level and the payout to revert. Shares, which are down 58% year to date, edge down 0.1% to 94.9 pence. ([e-mail])

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Melrose Industries En Route to Industry-Best Cash Generation

1111 GMT - Melrose Industries is on a journey to industry-leading cash generation, given the margin trajectory and inflation hedge within the Engines division, combined with a refocused Structures business, Investec analysts Ben Bourne and Scott Cagehin say in a note. Margin performance is substantially better and driven by higher aftermarket demand and pricing as well as the successful delivery of operational improvements, the analysts say. Furthermore it is performing ahead of expectations as it upgrades 2023 profit guidance by 7% and issues a 2024 adjusted EBIT forecast 4% above market expectations, the analysts say. The analysts upgrade 2023 adjusted operating profit estimates to GBP405 million from GBP380 million, with 2024 forecasts to GBP530 million from GBP500 million. Shares are up 0.2% at 533.60 pence. ([e-mail])

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Melrose Industries Delivers on Its Promises

1044 GMT - Melrose Industries' performance update delivers on the company's promises, Kepler Cheuvreux analyst Aymeric Poulain says in a note. The company raised its 2023 guidance again, and now expects sales in the GBP3.3 billion-GBP3.4 billion range and adjusted EBIT of GBP400 million-GBP410 million. The engines business is outperforming expectations again and on track to deliver a 25% margin in 2023, while the restructured aerostructure division's sales are rebounding strongly and driving better margins, Poulain says. "With forecasts meeting or beating expectations, we see the stock as performing in line with its fundamentals and still offering solid upside on a 12-month view," Poulain says. Shares are up 0.3% at 534.20 pence. ([e-mail])

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(END) Dow Jones Newswires

11-16-23 1214ET