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Market Update

Cevian Buys 5% Stake in Ericsson, Metro AG Net Tumbles on Flat Revenues

Author: Sarla Buch
Last Update: 12:23 PM ET May 31 2017

4:00 PM Frankfurt Activist investor Cevian Capital acquired additional 5% stake in Ericsson worth $1 billion. IG Group forecasted annual revenues to increase 7%. Londonmetric acquires three urban logistics warehouses for 23.9 million. Germany based retailer Metro AG reported flat revenues.

In London trading, FTSE 100 index increased 27.52 or 0.4% to 7,554.50 and in Frankfurt the DAX index jumped 107.21 or 0.9% to 12,705.67.

In Paris, CAC 40 index advanced 27.20 or 0.5% to 5,333.14.

For the month, FTSE 100 index soared 4.9%, the DAX index jumped 2.2% and the CAC 40 index increased 1.3%.

Telefonaktiebolaget LM Ericsson soared 6.6% to 63.80 Swedish kronor after the activist investor Cevian Capital bought additional 5% stake worth about a $1 billion in the Sweden-based communication services provider.

Cevian confirmed as of May 31, it owns 16.67 billion kronor worth of shares of Ericsson, of the total 3,334,151,735 shares 261,755,983 shares are series A and 3,072,395,752 shares are series B shares.

IG Group Holdings Plc soared 4.5% to 578.36 pence after the U.K.-based online brokerage and trading services provider forecasted full year revenue to increase 7% and pretax profit to increase modestly from a year ago.

Londonmetric Property Plc gained 1.1% to 168.70 pence after the U.K.-based retail property developer said net rental income in the in the year ending in March soared 10.1% to 73.9 million.

Net profit in the year plunged 23.8% from a year ago to 63 million from 82.7 million and diluted earnings per share dropped to 10.1 pence from 13.3 pence.

The retail space developer said as of March 31, its portfolio was valued at 1.54 billion and the company is focused on building a portfolio of properties related to logistics.

Separately, the property developer today said it had acquired three urban logistic warehouses in Crawley, Coventry and Huyton for about 23.9 million or 27.4 million.

Metro AG slumped 2.3% to 29.90 after Germany-based self-service wholesaler and retailer reported revenues in the first-half ending in March were flat from a year ago at 12.15 billion.

Net income in the year tumbled 31.6% from a year ago to 331 million from 484 million and diluted earnings per share slumped to 1.01 from 1.48.

Metro said sales in the period were flat and the retailer closed nine stores and weak performance in Western Europe and domestic markets did not offset sales increase Eastern Europe even after online sales soared 40% and trend at Media-Saturn and Metro Cash and Carry improved.

The wholesaler added sales in cash and carry segment soared 23% to 2.1 billion and sales in Media Markt-Saturn business slightly increased 0.1% to 12.2 billion.

Bertrandt AG jumped 2.9% and Germany-based technical and commercial services provider said revenues in the first-half ending in March rose 2.6% from a year ago to 497.6 million.

Net income in the year plunged 13.4% from a year ago to 25 million from 28.9 million.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc