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“A rough week for the markets sees the FTSE 100 on course for a 3.6% fall at 6,902.43, reaching its lowest level since December 2016 as fears of a trade war between the US and China ratchet up,” says AJ Bell Investment Director Russ Mould.
GlaxoSmithKline
“After Reckitt Benckiser pulled out of a bid for Pfizer’s consumer healthcare business on Thursday, GlaxoSmithKline has followed suit and has also seen a bump in its share price in response.
“Investors are apparently relieved they are being spared the headwind of a potentially complicated integration process for an operation with a $20bn price tag.
“M&A deals have set a record pace in the early part of 2018, but this could be a sign market appetite for big acquisitions is waning.
“The company is also boosted by news its shingle treatment Shingrix has been approved in Europe and Japan.”
Indivior
“Opioid addiction treatment specialist Indivior, a 2014 spin-off from Reckitt Benckiser, is the latest name from the mid and large cap ranks to endure a double-digit dive in its share price.
“Today’s fall shows the risks of being too reliant on a single blockbuster drug as a US court rules in favour of a potential generic alternative to its flagship Suboxine Film treatment.
“In its response to the ruling Indivior says it could see a ‘rapid and material loss of market share’ for the drug in the US if the decision stands and, although it reckons it has grounds for appeal, many investors appear unwilling to wait around to find out.”
Aviva
“A climbdown by insurance firm Aviva on the planned cancellation of preference shares saw the shares underperform a weak market this morning. Preference shares are a type of equity which pays out a fixed dividend, usually twice a year.
“The name ‘preference’ comes from the fact that they rank above ordinary shares when it comes to the payment of dividends and return of capital.
“Aviva had planned to cancel the shares at par value despite the fact their high yields had seen them trade at significant premiums. After a storm of criticism, it has reversed this decision. However, this is potentially negative news for ordinary shareholders who might otherwise have enjoyed more generous returns themselves.”
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