FTSE 100 Close: UK stocks start week slightly lower, AAL rejects latest BHP bid

• FTSE 100 closed Monday slightly lower
• Wall Street starts week with small gains
• Anglo America rejects another BHP bid
• Haleon Faces Short-Seller Pressure
• NatWest gets new American shareholder
• Top day for Diploma

FTSE 100 nipped lower

London’s FTSE 100 index declined slightly, closing Monday’s session down 22 points at 8,411.

European indices also lowered, slightly, with traders mindful of the latest round of inflation and macroeconomic data announcements later this week – with US CPI due on Wednesday, and closer to home UK employment stats are awaited.

“London markets seem to have lost a little of their fizz as investors wait to find out if the latest UK jobs numbers are just the right temperature to allow Bank of England ratesetters to feel comfortable changing tack,” said Danni Hewson, head of financial analysis at AJ Bell.

She added: “The last couple of weeks have heaped a bit of value back on UK listed stocks but after years on the investing bench there’s still a lot of ground to make up in this half of the game.”

Wall Street benchmarks steady

In the United States, the major stock indices made a positive start before easing off.

• Dow Jones: up 5 points, 0.1%, at 39,514.
• S&P 500: up 2 points, 0.04%, at 5,224.
• Nasdaq Composite: up 50 points, 0.3%, at 16,391.

The modest gains hold on to last week’s positive momentum, which was helped by an array of expectation-beating corporate earnings.

This week, investors will be looking to the likes of Home Depot, Alibaba, Monday.com, and Walmart as it is their turn to report.

In the meantime, the market was (not for the first time) caught on the hop by so-called ‘meme trading’ in GameStop which more than doubled in value before trading was suspended.

It was triggered by the ‘return’ of the original Reddit ‘meme-stock’ trader and Reddit user “Roaring Kitty”, aka Keith Gill.

Gills social media account posted a sketch of a gamer sitting forward, interpreted by his online audience as an investment signal.

With no news, GameStop stock jumped around 110% in Monday morning’s trading.

Anglo American rejected another BHP bid

Aussie miner BHP Plc (LSE:BHP) on Monday confirmed that Anglo American’s (LSE:AAL) management snubbed its improved takeover approach.

The improved offer, announced last week, was still pitched at £34 billion and demanded asset sales, but promised AAL shareholders a larger stake in the combined business.

BHP boss Mike Henry struck a stubbornly bullish tone, in a stock market statement, as he said: "BHP and Anglo American are a strategic fit and the combination is a unique and compelling opportunity to unlock significant synergies by bringing together two highly complementary, world-class businesses.”

According to an analyst note published Monday, RBC reckons the BHP is still on the cheapside with the Canadian bank’s team estimating AAL’s value at around £31 per share versus the BHP bid that equates to £27.53.

Haleon is seeing short-seller pressure

Haleon PLC (LSE:HLN), known for its Sensodyne and Advil products, is currently dealing with a significant short-seller attack from Marshall Wace, which has taken a position worth around £150 million.

It marks the company's first major short-seller challenge since its spinoff from GSK and Pfizer two years ago.

Despite the reports, the stock remained relatively stable closing Monday at 328.4p, up 0.18%.

NatWest Gains New Major Shareholder

Capital Group, an American investment firm, acquired over £110 million in shares of NatWest Group (LSE:NWG).

It comes as the UK government’s stake (acquired through the $46bn bank bailout in the 2008 crisis) was reduced to less than 27%.

The UK aims to exit its holding, to fully reprivatize the bank, either by 2025 or 2026. By the end of the year its expected to have less than 10%.

According to reports, the American’s transaction came after the UK government’s sale.

Diploma Tops FTSE 100

Diploma PLC (LSE:DPLM) led the FTSE 100 in this morning’s trade thanks to what were deemed impressive half-year results.

The company – which distributes seals, gaskets and cylinders – reported a 10% improvement in revenue, 14% better operating profit and boosted its dividend by 5%.

Johnny Thomson, Diploma’s chief executive, highlighted "good volume-led organic growth in a more challenging market environment", helped by acquisitions.

Shein's may be set for London IPO

Chinese e-retailer Shein is reportedly nearing its application to list on the London Stock Exchange.

It comes after stalled attempts to float in New York, with London now said to be presenting a more favourable regulatory environment.

Shein was given a valuation of $66 billion last year, so if concluded it would be a notable boost to London’s recently waning IPO market.