Maitland/AMO Morning Monitor – Friday 28 August 2020

28th August 2020

In the news

  • The UK has recorded 1,522 new cases of Covid-19 in 24-hours, marking the highest tally since mid-June
  • The ECB has said that Eurozone bank deposits increased 10.3% in the year to July, surpassing €12tn for the first time
  • Walmart has announced a joint bid with Microsoft for TikTok's US operations

Politics today

  • Parliament remains in recess.

Stock market moves

  • In Japan, stock markets slipped following the announcement that Prime Minister Shinzo Abe would resign due to health concerns.
  • Elsewhere in Asia markets rose with the Hang Seng and Shanghai Composite opening up.
  • In Europe, the FTSE100 is trading up 0.2% in early hours, while the STOXX 600 is down 0.1%.
  • Gold was up 0.7% at $1,941.55 a troy ounce.
  • Trading on New Zealand’s financial markets has resumed following four consecutive days of cyberattacks.

Corporate announcements

* Maitland Client

BBGI SICAV S.A. Half-year Report
  • Investment Basis NAV up 0.3% to £860.8m as at 30 June 2020 (31 December 2019: £858.6m).
  • 2020 Target Dividend of 7.18pps up 2.6% on the 2019 dividend.
  • Resilient portfolio performance during the reporting period despite the wider market and economic uncertainty, thanks to the Company’s focus on value preservation and the low-risk nature of the portfolio’s composition.
  • Sarah Whitney, Chairman, said: “I am confident in the Company’s ability to maintain robust long-term, predictable and stable income derived from our diversified global portfolio of infrastructure assets.”
Essentra PLC Half-Year Results
  • Revenue decline of 11.7%, to £448.4m (at constant FX).
  • Adjusted operating profit down 40% (at constant FX) to £29.0m. Portfolio simplification successfully completed in HY 2019 accounted for £6.0m of the £19.3m decline, with the remaining decline mainly driven by volume gearing effect.
  • Filters division made strong progress on game changers with commencement of new outsourcing contracts in Q2 helping to return division to growth in June.
  • Paul Forman, CEO, said: “Although the timing and profile of recovery remains uncertain – and barring a major second wave to the pandemic – based on recent trading and internal forecasts, our current expectation for the year to 31 December 2020 is that the resilient performance seen to date will continue with revenue and adjusted operating profit within current range of analyst expectations.”
India Capital Growth Fund Limited* Director Appointment
  • India Capital Growth Fund Limited is pleased to announce that Patrick Firth will join the Board and become Chairman of the Audit Committee, subject to shareholder approval at the Annual General Meeting on 25 September 2020.
  • As previously disclosed John Whittle is standing down as Chairman of the Audit Committee and from the Board and will be retiring at the conclusion of the AGM.
  • Patrick Firth qualified as an accountant with KPMG and has worked in the investment and funds industry in operations and management in Guernsey for nearly 30 years.
  • Elisabeth Scott, Chairman, said: “I am pleased that Patrick Firth is joining the board.  He has deep experience of the fund industry, and of quoted investment funds.  We look forward to welcoming him as we say thank you to John Whittle for his significant contribution over the years.”