London midday: Stocks continue to grind higher ahead of US data

by | Aug 13, 2021

Stocks were continuing to grind higher at the end of the week with investor sentiment buoyed by the record highs set overnight by the US Dow Jones Industrials and S&P 500.
Offsetting those fresh milestones on Wall Street, albeit less than fully, was news of a partial shutdown of the world’s third-largest container port in China.

At 1139 BST, the FTSE 100 was trading up 0.42% to 7,223.17, alongside a 0.16% advance for the FTSE 250 to 23,785.39.

Worth noting, Thursday’s gains for SU equities came despite a stronger-than-expected reading on producer prices.

But according to Michael Hewson, chief market analyst at CMC Markets UK: “For now, markets appear to be working on the baseline assumption that a taper is coming, and getting comfortable with that idea, and as long as the discussion doesn’t move onto the more sensitive topic of rate rises, then the current trend of higher highs looks set to continue.”

In China meanwhile, on Friday authorities shut down the Meishan terminal at the Ningbo-Zhoushan container port, after a worker was infected with Covid-19.

Not lost on investors was the fact that a similar decision taken in May, at the Yantian port in Shenzhen, had led to shipping delays around the globe.

Still on the economic calendar for later in the session was a preliminary reading on the University of Michigan’s US consumer confidence index for July.

Consensus was for an unchanged reading of 81.2.

Also due out in the States were import price figures covering the month of July.

No new major economic reports had been published in the UK.

Babcock bolsters balance sheet through disposal

Defence and aerospace engineer Babcock said it has sold its Frazer-Nash Consultancy to US peer KBR for £293m as part of its disposal programme to bolster its balance sheet. Frazer-Nash provides engineering and technology solutions across a broad range of national infrastructure, to operators and regulators from a network of nine UK and four Australian locations. The consultancy, which Babcock acquired in 2007, employs around 900 people.

Vectura’s board of directors recommended a £1.1bn takeover by Philip Morris International after the close of trading on Thursday. The proposed acquisition values it at 165p a share, a 10p-a-share premium to a rival 155p-a-share offer from Carlyle, the US private equity firm.

Avon Protection cut its revenue guidance for 2021 and 2022 because of delayed orders and supply chain disruption. The company said it expected 2021 revenue to be in the range of $245m-$260m and reduced its guidance for 2022 revenue to $320m-$340m. Cash conversion in 2021 is likely to be about 50% because of inventory build-ups and delayed receipts from customers.

Market Movers

FTSE 100 (UKX) 7,222.57 0.41%
FTSE 250 (MCX) 23,783.10 0.15%
techMARK (TASX) 4,777.90 0.49%

FTSE 100 – Risers

Rolls-Royce Holdings (RR.) 111.92p 2.15%
Prudential (PRU) 1,528.50p 2.04%
Flutter Entertainment (CDI) (FLTR) 14,235.00p 1.82%
JD Sports Fashion (JD.) 983.80p 1.55%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,194.00p 1.52%
Melrose Industries (MRO) 175.00p 1.42%
Halma (HLMA) 2,967.00p 1.37%
Entain (ENT) 1,968.50p 1.34%
Aviva (AV.) 426.00p 1.21%
Standard Chartered (STAN) 467.00p 1.19%

FTSE 100 – Fallers

Hargreaves Lansdown (HL.) 1,494.00p -1.19%
Evraz (EVR) 591.20p -1.14%
Auto Trader Group (AUTO) 633.00p -1.12%
Glencore (GLEN) 336.90p -0.72%
Hikma Pharmaceuticals (HIK) 2,526.00p -0.71%
Rightmove (RMV) 698.00p -0.65%
DCC (CDI) (DCC) 6,130.00p -0.65%
Smith (DS) (SMDS) 436.00p -0.64%
Sainsbury (J) (SBRY) 301.70p -0.63%
Royal Dutch Shell ‘B’ (RDSB) 1,445.40p -0.61%

FTSE 250 – Risers

Babcock International Group (BAB) 324.70p 5.90%
CMC Markets (CMCX) 420.00p 3.45%
Indivior (INDV) 168.20p 2.87%
Carnival (CCL) 1,554.60p 2.28%
Centamin (DI) (CEY) 97.14p 1.95%
Pets at Home Group (PETS) 480.80p 1.86%
Mitchells & Butlers (MAB) 288.00p 1.84%
PureTech Health (PRTC) 330.50p 1.69%
Essentra (ESNT) 290.50p 1.57%
Rank Group (RNK) 183.80p 1.55%

FTSE 250 – Fallers

Avon Protection (AVON) 2,282.00p -22.64%
Energean (ENOG) 653.50p -2.32%
Hammerson (HMSO) 35.61p -2.30%
Tyman (TYMN) 435.00p -2.25%
Synthomer (SYNT) 552.50p -2.04%
Ferrexpo (FXPO) 409.40p -1.96%
Hill & Smith Holdings (HILS) 1,748.00p -1.91%
Harbour Energy (HBR) 365.40p -1.67%
Tullow Oil (TLW) 46.92p -1.64%
Quilter (QLT) 153.40p -1.60%

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