Hot Features
Premium
Register to chat with like-minded investors on our interactive forums.
London open: Stocks edge higher as Brexit looms
London stocks edged higher in early trade as investors nosed through corporate news and before attention turns to Brexit a day before Prime Minister Theresa May triggers Article 50 to kick off formal divorce proceedings with the European Union.
At 0830 GMT, the FTSE 100 was up 0.2% to 7,306.03, while the pound was 0.1% firmer at $1.2573, steadying following strong gains on Monday.
Analyst Tony Cross at TopTradr said: “With the Brexit honeymoon period for UK economic data already seemingly over, could there be some resulting downside pressure for the pound? As it stands for now, GBP remains resilient, but with a relatively quiet economic calendar in the next 24 hours and nothing of note due out of the UK, the excuse to take money off the table ahead of any potential uncertainty could well see the stiff upper lip move to a bloodied nose.
“The uncertainty of the Brexit process means there’s little confidence as to where the UK economy – and indeed sterling – will go next.”
In corporate news, Tesco nudged down after agreeing to pay a £129m fine to the Serious Fraud office and agreeing to a finding of “market abuse” by the Financial Conduct Authority for overstating its expected profits in a trading update in August 2014.
The retailer’s £3.7bn takeover of wholesaler Booker was also in focus following a report that two of its largest shareholders were advising against the deal.
Wolseley surged after the building materials supplier unveiled a jump in half-year profits, a name change to Ferguson and proposed to start reporting in US dollars.
United Utilities nudged higher after it said current full year trading was in line with expectations, with group revenue expected to be slightly lower than last year.
Insurer Aviva was on the front foot following a report that it is looking to sell Friends Provident International in a deal that could fetch up to $750m.
Thomas Cook gained ground as it said its winter programme is closing out as expected, while summer bookings have increased with strong demand for Greek holidays and smaller European destinations.
Housebuilder Redrow traded a little higher after abandoning its bid for Bovis Homes, saying it was not in its shareholders’ best interests to increase its offer.
Ladbrokes Coral retreated after it reported that its first full-year results as a merged company saw profits near the top end of forecasts.
Motoring group AA was in the green after it said full-year core profit was steady compared to the previous year, as expected, while membership increased, reversing a long-standing decline.
Aerospace and defence company Cobham fell after it confirmed plans to raise around £512.4m through a rights issue as it looks to pay down debt. The 2 for 5 fully underwritten rights issue of 683.1m shares was priced at 75p per share, which represents a discount of 41% to the closing price of 126.8p on Monday.
Soft drinks group AG Barr slipped despite reported a jump in full-year profit and lifting its dividend.
Card Factory was in the red after it reported a rise in full-year underlying pre-tax profit, but a drop in statutory pre-tax profit.
Inmarsat was lifted by an upgrade to ‘outperform’ from ‘sector perform’ by RBC Capital Markets, but Jimmy Choo was hit by a downgrade to ‘hold’ by HSBC and Carillion fell on the back of a Jefferies downgrade.
