CashNews.co
Rightmove interest fires up shares after FTSE 100 underperformance
09:44
Rightmove shares have settled 21% or 114.1p higher at 669.7p, in a session when the wider FTSE 100 has stayed near its opening mark at 8370.
The property portal was valued at £4.4 billion on Friday, with shares well below the highs of 2021 and lagging the broader rally in UK equities more recently.
AJ Bell investment analyst Russ Mould said it was easy to see why Australia’s REA Group would be interested in Rightmove, highlighting the new Labour government’s pro-housing policies and its focus on improving the UK economy.
He added: “Rightmove is a unique asset on the UK stock market and shareholders are unlikely to accept the first bid that comes along. It is the dominant property portal in the UK and should command a premium takeout price.
“Shareholders might be frustrated at the recent share price performance, but if they’ve stuck around for the past year then they’ve clearly got their eye on the long-term prize, otherwise they would have jumped ship by now.”
Weaker new car market hits Vertu profits
09:29 , Graeme Evans
AIM-listed Vertu Motors, whose brands include Bristol Street Motors and Macklin Motors, fell 2.1p to 69.5p after it posted an update for the five months to 31 July.
The company said new retail vehicle sales volumes fell 5.8% in the period, better than the wider UK market’s 12.1% decline.
Vertu, which trades from 192 outlets, said discounting by manufacturers and softening margins were evident in several franchises due to oversupply.
It reported that the supply of UK new vehicles is being pushed to the fleet channel, where UK sales grew 19.3%.
In used vehicles, Vertu highlighted like-for-like volume growth of 5% and values stable on increasingly constrained supply.
Half-year profits will be lower as anticipated, but the second half performance is expected to improve amid a stronger used car market.
Chief executive Robert Forrester added: “The retail new car market remains weaker as the Government’s regulation to transition to battery electric vehicles causes market volatility and negative impacts.”
Rightmove shares jump on bid interest, Kainos slides in FTSE 250
08:23 , Graeme Evans
Rightmove shares are up 24% or 135p to 690.5p, their highest level in over two years after Australia’s REA Group confirmed it is mulling a bid approach.
The takeover interest failed to inspire the FTSE 100 index, which is 3.98 points lower at 8372.65.
Shares in B&Q owner Kingfisher fell 6p to 278.3p after Barclays removed its Overweight recommendation.
Tesco shares moved the other way, rising 0.4p to 354.1p on the back of Bernstein’s improved price target of 390p.
In the FTSE 250, Kainos shares fell 114p to 992p after the IT services firm said tougher trading conditions meant revenues growth for the year to 31 March will be short of market forecasts. Profit guidance is unchanged.
Murdoch-owned REA of Australia confirms bid interest in Rightmove
07:48 , Michael Hunter
Rightmove, the property website, is at the centre of bid interest from Australia’s REA.
The £4.4bn London-listed firm has caught the eye of the potential suitor, which is owned by Rupert Murdoch’s News Corp. Any deal for Rightmove could make it the latest major UK name to leave the FTSE 100 after being acquired
REA confirmed firm said it was considering a “a possible cash and share offer” pointing to “clear similarities” between it and Rightmove, adding:
“The REA Board believes the enlarged group would represent a highly attractive investment opportunity for both REA and Rightmove shareholders”.
It also said “REA has not approached, nor had any discussions with, Rightmove regarding any potential offer”.
Having announced its interest, REA now has until the end of the month to make a formal offer or drop the prospect of a bid according to City takeover rules.
Rightmove is often the first step homeowners take into the market. There are hopes that falling interest rates will help re-energise the house market, which slowed with the cost of borrowing at a 16-year high to 5.25% as the Bank of England fought off high inflation with 15 consecutive rate hikes. It is now at 5%, with further cuts expected.
FTSE 100 seen higher, mixed session for Asia markets
07:19 , Graeme Evans
The FTSE 100 index is forecast to open higher, although the Labor Day holiday in the US means the rest of the session is likely to be low key.
Leading Wall Street benchmarks finished in positive territory on Friday, led by gains of 1% for the S&P 500 index and the Nasdaq Composite.
The S&P’s third weekly rise in a row left it close to July’s record high, despite a weaker performance by Magnificent Seven stocks including Nvidia.
In Asia, the Hang Seng index has started the week on the back foot after a fall of 1.5% but Tokyo’s Nikkei 225 pulled out of negative territory late in the session.
The pound is at $1.3131, while Brent Crude stands at $76.31 a barrel after a fall of 0.8% so far today. The FTSE 100 index is set to open up 19 points at 8396.