Stocks Mixed, Vodafone And Paysafe Lead Gainers

LONDON (Alliance News) - Stocks in London were mixed on Friday at midday, with telecommunications giant Vodafone Group among the best FTSE 100 index performers, while online payment firm Paysafe and Acacia Mining were top and tail in the FTSE 250, respectively.

The FTSE 100 index of large caps was down 0.1%, or 6.80 points at 7,481.07. The FTSE 250 index of mid-caps was down 0.1% at 19,752.55 points, while the AIM All-Share index was up 0.3% at 970.78.

The BATS UK 100 index was down 0.1% at 12,693.08, and the BATS 250 was marginally higher at 17,967.54. The BATS Small Companies was up 0.1% at 12,113.24.

Vodafone was up 2.3%, after it said first quarter revenue dropped from the prior year, but that it saw organic service growth as it reiterated its full-year outlook. The firm reported revenue of EUR11.47 billion for the three months to June 30, down 3.3% from EUR11.87 billion in the same period the prior year.

Vodafone noted the revenue decrease included a negative impact from the deconsolidation of Vodafone Netherlands and a hit from foreign exchange rate movements. On an organic basis, service revenue rose 2.2%, accelerating from 1.5% growth the prior quarter.

The company said first quarter trading was consistent with its expectations and confirmed its outlook for financial 2018.

"Overall, this performance gives us confidence in reiterating our outlook for the year," said Chief Executive Vittorio Colao.

Convatec Group was another gainer, up 1.7%. The global medical product firm was recovering losses seen on Thursday, when it fell 0.6%. The firm said on Thursday it has agreed to acquire US-based incontinence-related products distributor Woodbury Holdings from MTS Health Investors for USD120.5 million.

Paddy Power Betfair was the worst blue-chip performer, down 4.2%, after Investec issued a double downgrade on the bookmaker's shares to Sell from Buy.

easyJet was down 4.2%. The budget airline was extending the decline seen on Thursday, when it fell 5.9%, as it reported its third-quarter results with a cautious outlook. The airline said on Thursday that, with the ongoing low cost of fuel allowing capacity to stay in the market, it currently expects continued pressure on yields into the next financial year.

In the FTSE 250, Paysafe was the biggest gainer, up 7.1% at 580.50 pence, having hit a record high of 591.50p at the open. Paysafe has received a preliminary, conditional takeover proposal from funds managed by Blackstone and funds managed by CVC Capital Partners. Paysafe said it was initially approached by the funds in May.

Following the receipt of a number of indicative proposals from the funds that were rejected, Paysafe said due diligence access was granted on the basis of a possible offer of 590.00 pence per share.

Under the terms of the possible offer, Paysafe said its shareholders would receive the offer in cash, with the price representing a premium of approximately 34% to the volume weighted average price for the six month period ended 30 June, the day prior to broad sector consolidation speculation.

This would value the company at around GBP2.9 billion. Shares in Paysafe closed up 0.8% at 542.00p on Thursday.

In a separate statement, Paysafe said it has agreed to acquire Delta Card Services, the holding company for Merchants' Choice Payment Solutions, a payment processor based in Shenandoah, Texas.

Paysafe said the consideration for the acquisition is USD470.0 million, payable in cash, which will be funded by a USD380.0 million incremental loan facility drawn under its existing senior facility agreement, with an additional USD90.0 million from existing cash funds.

Acacia Mining was down 7.2% at 260.50p. The gold miner shares touched a low of 247.60p, their lowest level since March, as the firm has not declared an interim dividend due to the negative cash flow caused by the issues in Tanzania.

The government of Tanzania has banned exports of unprocessed ore and approved laws that enable governments to renegotiate contracts with miners. Acacia has seen a reduction in cash balances to USD176 million from USD318 million, because the company was unable to realise USD175 million of revenue during the first six months of trading as a result of the "complex and fluid situation".

In mainland Europe, the CAC 40 index in Paris and the DAX 30 in Frankfurt were down 0.6% and 0.7%, respectively.

Wall Street was called for a higher open on Friday, with both the Dow Jones Industrial Average and the Nasdaq Composite seen down 0.2%, while the S&P 500 index was pointed for a marginally lower open.

In a thin economic calendar on Friday, the Baker Hughes US oil rig count is at 1800 BST.

The UK budget deficit increased in June, data from the Office for National Statistics showed early Friday. Public sector net borrowing, excluding interventions increased by GBP2.0 billion from previous year to GBP6.9 billion in June. The expected level was GBP4.9 billion. In the current financial year-to-date, PSNB grew by GBP1.9 billion to GBP22.8 billion.

Of this GBP22.8 billion of PSNB, GBP17.1 billion related to the cost of the "day-to-day" activities of the public sector, while GBP5.7 billion related to capital spending such as infrastructure. Public sector net debt totalled GBP1,753.5 billion at the end of June 2017, equivalent to 87.4% of gross domestic product.

The pound was quoted at USD1.3015 at midday, slightly higher from USD1.2999 at the London equities close on Thursday.