Europe Movers: GSK, Inditex, N Brown Group, UK Home Builder, Stratec

Bridgette Randall
07 Jun, 2023
Frankfurt

The DAX index increased 0.4% to 15,935.32, the CAC-40 index decreased 0.4% to 7,181.45, and the FTSE 100 index inched higher 0.03% to 7,630.53. 

The yield on 10-year German Bunds inched higher to 2.36%, French bonds traded higher to 2.91%, the UK gilts edged up to 4.19% and Italian bonds increased to 4.17%.

Industria de Diseno Textil SA or Inditex increased 6.2% to €33.79 after the retailer reported better-than-expected profit in the first quarter. 

Revenue in the first quarter ending in April increased 13% to €7.6 billion and net income soared 54% to €1.2 billion. 

The company plans to recommend a dividend of €1.20, composed of two equal payments of €0.60 per share, the first interim payment was made on 2 May followed by the final dividend payment on 2 November.

Inditex said sales in the current quarter between May 1 and June 4 increased 16% in constant currency, reflecting a rebound in worldwide sales. 

GSK plc increased 0.02% to 1,391.80 pence after the company's respiratory syncytial virus vaccine Arexvy won an authorization from the European Commission. 

UK home builders declined after home prices fell on a yearly basis In April according to data published by Halifax.

Home prices were stable in May from April but declined from a year ago by 1.0% after rising 0.1% in the previous month. 

Average property price in May decreased to £286,532 compared to £286,662 in April.

"As expected the brief upturn we saw in the housing market in the first quarter of this year has faded, with the impact of higher interest rates gradually feeding through to household budgets, and in particular those with fixed rate mortgage deals coming to an end," noted Halifax Mortgages Director Kim Kinnaird in the statement. 

Persimmon Plc declined 1.5% to 1,232.50  pence, Berkeley Group fell 1.2% to 3,990.0 pence and Taylor Wimpey dropped 1.2% to 116.30 pence. 

N Brown Group Plc declined 3.6% to 23.91 pence after the online fashion retailer reported a decline in revenue and net income. 

Stratec SE increased 2.7% to €63.80 after the Germany-based in vitro diagnostic company agreed to acquire the U.S. based Natech Plastics. 

Stratec agreed to pay $30 million and earn out based on certain parameters over the next two years for the Long Island, New York based company which generated $16.3 million revenue in 2022. 

The acquisition "should have a neutral to slightly positive impact" on adjusted earnings per share at the STRATEC Group in the 2024 financial year, said the company in a statement.