London investors returned to the buyers circle again today as a steady rise in the oil price helped bolster sentiment. Our Trader writer Neil Wilson says: 'European markets rose after Asian equities made some gains. Markets in Japan, South Korea and China were shut for a holiday, but Hong Kong and Sydney rose. Wall Street closed a little higher after bulls pushed the S&P 500 into positive territory only in the final hour of trading yesterday. There is a little more risk appetite as oil prices climb.' For Neil's full article, click here.
IC TIP UPDATES:
LondonMetric (LMP) have announced plans to raise £100m by placing new shares with institutional investors, equivalent to 6.7 per cent of the group’s outstanding share capital. The logistics property specialist said the proceeds would be used to fund a pipeline of potential acquisitions, which includes five “long-income” assets and an urban logistics warehouse in London and a sale and leaseback portfolio. The group said that it had collected 92 per cent of rent due by 1 April and expected to declare a fourth quarter dividend of 2.3p a share alongside its full-year results in June. Like for like income growth for FY2020 was 4 per cent on the standalone LondonMetric portfolio, with new lettings and rent reviews adding £5m in income. Buy.
KEY STORIES:
Royal Dutch Shell (RDSB) has sold its Appalachian shale gas assets for $541m (£434m). The Pennsylvania assets produce 215-230m cubic feet of gas per day, and include 229km of pipelines. The buyer, National Fuel Gas Company, will pay either the full amount in cash or hand Shell up to $150m in shares. Panmure Gordon analyst Colin Smith put the sale price at 4.3 times cash profits. The deal is expected to close by the end of July.
OTHER COMPANY NEWS:
Virgin Money UK (VMUK) has appointed David Bennett as its new chairman, three months after incumbent Jim Pettigrew announced his intention to step down. Mr Bennett has served as the challenger bank’s deputy chairman since October 2015.
