Gold traded at its highest price in nearly seven years yesterday as tensions increased in the Middle East and investors rushed for safer assets. Oil briefly climbed past $70 a barrel as stock markets endured a mixed day, falling in Asia and then Europe but faring better in the United States. Most investors continued where they had left off on Friday, moving money out of stocks and into safe-haven assets amid fears that a conflict between the United States and Iran would destabilise the region and push up the oil price.
Lekoil Ltd (DI) (LEK) has appointed a former British minister for Africa to its board. Mark Simmonds, who spent two years in government under David Cameron, is strengthening a portfolio of business interests across the continent by joining Lekoil. He was recruited as non-executive director of the £51 million explorer and producer alongside Tony Hawkins, chief executive of Columbus Energy Resources, an oil and gas business focused on Trinidad and Surinam. They will join the board immediately.
Dechra Pharmaceuticals (DPH) has agreed to buy Osurnia, which treats inflammation of the outer ear in dogs, from Elanco Animal Health. Elanco, which is listed in New York, is offloading Osurnia as part of its acquisition of the animal health business of Bayer, the German pharmaceuticals group. Osurnia generated revenues of $31.2 million in 2018, a third of which were in the United States, and has been on the market for about four years. It has global intellectual property protection until 2027. Dechra’s acquisition will bolster its treatments for otitis externa, adding to a portfolio that already includes Canaural. It will finance the deal, which is subject to regulatory approval, through existing cash and borrowing facilitie.
A review by NMC Health (NMC) into a devastating report by an American short-seller will be overseen by a director whose independence has been called into question by the critical investor. The private healthcare company said yesterday that the review would be supervised by four non-executive directors, led by Jonathan Bomford. He is among the directors that Muddy Waters said in its report “appear to us independent in name only”. Mr Bomford, 71, is the company’s senior independent non-executive director. Until last year he was a director of Travelex, a business owned by Finablr, a London-listed foreign exchange company that is controlled by Bavaguthu Raghuram Shetty, the NMC founder. Mr Bomford is also a former partner at EY, the company’s auditor.
HSBC did away with its “buy” recommendation for Bakkavor Group (BAKK) yesterday. Analysts at the bank cut their rating to “hold”, although they left their price target unchanged at 145p. The number-crunchers cited industry data towards the end of last year that showed “very weak” grocery sales. Their biggest concern, however, was the rise of Aldi and Lidl, the German discounters, which continue to eat into the market share of the supermarket stalwarts that Bakkavor supplies. “The group continues to suffer from its exposure to customers and categories in the UK that are not growing, and this is not an easy fix,” Doriana Russo, a consumer and retail analyst at HSBC, said. “With stagnating industry sales in the UK and [continuing] cost pressure from higher labour costs, we do not see any imminent upside on forward-looking earnings growth.”
Hikma Pharmaceuticals (HIK) was one of the index’s heaviest fallers, sliding 74p to £19.12 on the back of a bearish research note from JP Morgan. Analysts at the investment bank warned that the company’s bosses “could slightly disappoint” with their guidance for the generics business for the year ahead when they next update the market in March.
Tempus – Plus500 Ltd (DI) (PLUS): Sell. Australian clampdown poses a risk to its business
