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Market Update

European Markets Subdued on Catalonia, Tesco Resumes Dividend

Author: Sarla Buch
Last Update: 12:00 PM EDT October 04 2017

4:00 PM Frankfurt BMW September sales in the U.S. edged lower but electric vehicles sales soared. Royal Dutch Shell agreed to cancel $900 million stake sale in a Thai gas field. Tesco plans to resume dividend after three years. Worldline revised revenue forecast up to 2019 and agreed to buy India-based MRL PosNet.

European markets traded lower on the rising tension between Spain and the breakaway region Catalonia.

In London trading, FTSE 100 index edged down 3.64 to 7,463.93 and in Frankfurt the DAX index increased 33.37 or 0.3% to 12,936.02.

In Paris, CAC 40 index slipped 16.36 or 0.3% to 5,351.65.

Bayerische Motoren Werke AG jumped 2.7% to 88.49 after Germany-based automobile and motorcycle maker said BMW brand vehicle sales increased 0.7% to 25,571 from a year ago month.

BMW group sales in the U.S. fell 0.4% to 29,307 vehicles from the 29,413 vehicles sold in the same month a year ago but electric and plug-in hybrid electric vehicles soared 14.9% to 13,533 vehicles.

Royal Dutch Shell Plc slipped 0.5% to 2,285.50 pence after the Netherlands-based oil and gas producer said its subsidiary BG Asia Pacific Holdings Pte Ltd and KUFPEC Thailand Holdings Pte Ltd agreed to cancel $900 million stake sale in a Thai gas field to Kuwait Foreign Petroleum Exploration Company.

Tesco Plc dropped 3% to 184.50 pence after the U.K.-based retailer reported revenues in the first-half ending in August advanced 3.7% from a year ago to 28.3 billion.

Net profit in the year surged to 562 million from 71 million in a year ago period and diluted earnings per share surged to 5.21 pence from 0.42 pence.

Operating profit soared 71.8% to 885 million and pretax profit jumped 62.9% to 575 million from the same period a year ago. The profit surge was driven by strong sales of 19 billion in the U.K., Ireland and Europe and comparable sales rose 2.1%.

Tesco said it plans to pay dividend for the first time in three years after its accounting scandal.

""We continue to make strong progress. Sales are up, profits are up, cash generation continues to strengthen and net debt levels are less than half what they were when we started our turnaround three years ago, said chief executive officer Dave Lewis.

ThyssenKrupp AG slumped 2.9% to 23.99 after Germany-based diversified industrial conglomerate plans to consolidate its global forging business into a new unit.

Worldline SA surged 3.7% to 40.02 after France-based payment services provider said, after recent acquisitions of First Data Baltics and MRL PosNet in the quarter, revised fiscal 2017 revenue estimate to increase between 3.5% and 4% and grow between 5% and 7% in fiscal 2018.

In fiscal 2019, revenue are estimated to jump between 6% and 8% and free flow is estimated in the range of 230 million to 245 million.

Separately, Worldline agreed to acquire India-based rival MRL PosNet for about 89 million or $105 million in cash.

The transaction is expected to close before the end of this month.

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