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Sept. 16, 2021, 10:19 a.m. EDT

Rolls-Royce leads London gainers on Australian nuclear submarine deal

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By Barbara Kollmeyer

Shares of Rolls-Royce were climbing in London on Thursday, following news of its involvement in a deal to provide nuclear powered submarines, while power station group Drax also surged.

The FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +0.58% rose just 0.2% to 7,028.52, while the FTSE 250 index /zigman2/quotes/210598417/delayed UK:MCX +0.65% was stronger with a 0.5% gain. The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.4213% was flat at $1.3933.

Mining stocks were leading the way south and weighing on the main index, with shares of Anglo American /zigman2/quotes/201381512/delayed UK:AAL +0.96% dropping 4.5%, while Rio Tinto /zigman2/quotes/202627887/composite RIO +1.44% /zigman2/quotes/208934945/delayed UK:RIO -0.36% , BHP Group /zigman2/quotes/208108397/composite BHP +1.27% /zigman2/quotes/203323256/delayed UK:BHP -0.62% and Fresnillo /zigman2/quotes/201300065/delayed UK:FRES -1.69% shares fell more than 2% each.

Climbing nearly 4%, Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR +3.32% was mentioned in an announcement by the U.K. government about an Indo-Pacific security alliance between the U.S., Britain and Australia that will allow for defense capability sharing. Part of that includes equipping Australia with nuclear-powered submarines.

“The U.K. has built and operated world-class nuclear-powered submarines for over 60 years. We will therefore bring deep expertise and experience to the project through, for example, the work carried out by Rolls Royce near Derby and BAE Systems in Barrow,” said a Wednesday statement from No. 10 Downing Street .

Shares of BAE Systems /zigman2/quotes/206753913/delayed UK:BA +0.24% rose 1%.

Elsewhere, shares of power station operator Drax /zigman2/quotes/206157741/delayed UK:DRX -0.76% jumped 8% to 662 pence after a team of Barclays analysts led by Dominic Nash said they see “significant share price upside potential,” boosting their price target by 75% to 960 pence, implying 120% upside.

“We see Drax becoming a global leader in developing and operating these complex BECCS projects both in the UK and globally, and we estimate a long-termupside scenario valuation of 3800p, or 8.8x the current share price,” said Barclays analysts.

BECCS, or bioenergy with carbon capture and storage, is when bioenergy is extracted from biomass, capturing and storing the carbon before it reaches the atmosphere.

The U.K., like Europe, remains in the grips of a natural gas shortage that has sent electricity and other power prices soaring. A fire at a major U.K. power cable in Kent that sends power to France may be out of comission for months.

/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,264.44
+41.62 +0.58%
Volume: 130,915
Oct. 26, 2021 12:15p
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/zigman2/quotes/210598417/delayed
UK : FTSE UK
23,090.07
+148.29 +0.65%
Volume: 73,342
Oct. 26, 2021 12:15p
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3824
+0.0058 +0.4213%
Volume: 0.0000
Oct. 26, 2021 7:29a
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/zigman2/quotes/201381512/delayed
UK : U.K.: London
2,839.50 p
+27.00 +0.96%
Volume: 560,909
Oct. 26, 2021 12:14p
P/E Ratio
7.16
Dividend Yield
6.18%
Market Cap
£33.84 billion
Rev. per Employee
£253,662
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/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 66.83
+0.95 +1.44%
Volume: 2.46M
Oct. 25, 2021 4:00p
P/E Ratio
5.84
Dividend Yield
10.24%
Market Cap
$106.65 billion
Rev. per Employee
$939,693
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/zigman2/quotes/208934945/delayed
UK : U.K.: London
4,749.50 p
-17.00 -0.36%
Volume: 395,366
Oct. 26, 2021 12:14p
P/E Ratio
5.60
Dividend Yield
13.18%
Market Cap
£77.43 billion
Rev. per Employee
£732,787
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/zigman2/quotes/208108397/composite
US : U.S.: NYSE
$ 57.44
+0.72 +1.27%
Volume: 3.04M
Oct. 25, 2021 4:00p
P/E Ratio
13.16
Dividend Yield
10.48%
Market Cap
$139.62 billion
Rev. per Employee
N/A
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/zigman2/quotes/203323256/delayed
UK : U.K.: London
1,983.60 p
-12.40 -0.62%
Volume: 792,398
Oct. 26, 2021 12:14p
P/E Ratio
12.09
Dividend Yield
10.96%
Market Cap
£101.38 billion
Rev. per Employee
N/A
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/zigman2/quotes/201300065/delayed
UK : U.K.: London
907.40 p
-15.60 -1.69%
Volume: 193,222
Oct. 26, 2021 12:12p
P/E Ratio
14.71
Dividend Yield
2.62%
Market Cap
£6.75 billion
Rev. per Employee
N/A
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/zigman2/quotes/203646520/delayed
UK : U.K.: London
136.94 p
+4.40 +3.32%
Volume: 9.09M
Oct. 26, 2021 12:14p
P/E Ratio
4.37
Dividend Yield
N/A
Market Cap
£11.30 billion
Rev. per Employee
£245,311
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/zigman2/quotes/206753913/delayed
UK : U.K.: London
575.40 p
+1.40 +0.24%
Volume: 1.40M
Oct. 26, 2021 12:12p
P/E Ratio
10.47
Dividend Yield
4.21%
Market Cap
£18.76 billion
Rev. per Employee
£237,988
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/zigman2/quotes/206157741/delayed
UK : U.K.: London
524.50 p
-4.00 -0.76%
Volume: 111,584
Oct. 26, 2021 12:14p
P/E Ratio
N/A
Dividend Yield
3.58%
Market Cap
£2.13 billion
Rev. per Employee
£1.40M
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