Source: Sharecast
London FTSE 250 stocks were lower as investors eyed talks between Donald Trump and Russia’s Vladimir Putin in Alaska, as the US president looks to put an end to the Ukraine war.
Hopes of peace talks dented sentiment for defence stocks, with Qinetiq and Avon Technologies both lower on the day.
Russ Mould, investment director at AJ Bell, said: "It is not often that the market’s attention is centred on Alaska but the US state will be firmly in focus on Friday as President Donald Trump and Russian leader Vladimir Putin meet to discuss the Ukraine conflict.
"Any outcomes will not come until after UK markets have concluded trading for the day but investors will be watching closely for signs a credible peace deal is in the offing and any outcomes could set the mood music for next week.
"Oil prices have been somewhat volatile ahead of the summit as traders seek to work out if Russian exports to Western countries might resume.
Bytes Technology jumped to the top of the FTSE 250 as it announced a share buyback of up to £25m.
Ocean Wilsons reported a 6.2% return on its investment portfolio for the second quarter on Friday, taking year-to-date performance to 5.1%, despite what it described as a “challenging macroeconomic environment marked by trade uncertainties and ongoing geopolitical tensions”.
The FTSE 250 company said the portfolio was valued at $340.9m at the end of June, equivalent to $9.64 per share, with total implied net asset value at $944.2m including cash from the recently completed tender offer.
Its update followed the $594m sale in June of the company’s 56% stake in Wilson Sons to MSC’s SAS Shipping Agencies Services, a move it said “significantly strengthened” its balance sheet.
In July, Ocean Wilsons returned £109.1m to shareholders via an oversubscribed tender offer, repurchasing 20% of its share capital at 1,543p per share.
The same month, it paid a final dividend from Wilson Sons of 59 US cents per share, which it said would be the last from that holding.
On 28 July, the company announced plans to merge with Hansa via an all-share scheme of arrangement.
The independent committee of Ocean Wilsons said it believed the deal “will create a larger, stronger company which will benefit from meaningful scale and cost efficiencies and will be well placed to deliver long-term, sustainable shareholder value”.
Under the terms, each Ocean Wilsons share would be exchanged for 1.4925 new Hansa share units, comprising one voting share and two non-voting ‘A’ shares.
The boards of both companies unanimously backed the merger, to create a closed-ended investment company with more than £900m in net assets and a diversified global portfolio.
Completion was expected in late September, subject to shareholder approval at a 12 September meeting.
The committee urged investors to back the deal, warning that if it did not proceed, Ocean Wilsons could face listing changes under UK rules, restrictions on further buybacks due to “close company” limits, and the loss of dividend cashflows from Wilson Sons.
“Accordingly, the Ocean Wilsons independent committee unanimously recommends that Ocean Wilsons shareholders vote in favour of the scheme at the court meeting,” it said.
At 1236 BST, shares in Ocean Wilsons Holdings were up 0.385 at 1,144.31p.
FTSE 250 - Risers
Bytes Technology Group (BYIT) 390.00p 7.91%
Wizz Air Holdings (WIZZ) 1,391.00p 3.88%
Auction Technology Group (ATG) 347.50p 3.73%
Ocean Wilsons Holdings Ltd. (OCN) 1,180.00p 3.51%
AO World (AO.) 90.50p 2.72%
W.A.G Payment Solutions (WPS) 90.00p 2.51%
Petershill Partners (PHLL) 237.00p 2.16%
Balfour Beatty (BBY) 569.00p 1.61%
Worldwide Healthcare Trust (WWH) 321.00p 1.58%
JPMorgan Japanese Inv Trust (JFJ) 686.00p 1.48%
FTSE 250 - Fallers
Avon Technologies (AVON) 1,980.00p -3.65%
TBC Bank Group (TBCG) 4,555.00p -2.88%
Ocado Group (OCDO) 361.20p -2.64%
Supermarket Income Reit (SUPR) 79.00p -2.59%
Kier Group (KIE) 206.00p -2.37%
Close Brothers Group (CBG) 517.00p -2.36%
QinetiQ Group (QQ.) 476.00p -2.30%
Frasers Group (FRAS) 685.00p -2.21%
Ibstock (IBST) 142.60p -1.79%
Polar Capital Technology Trust (PCT) 402.00p -1.71%
