London open: Stocks edge down; Marshalls slides on profit warning

by | Jul 31, 2023

(Sharecast News) – London stocks edged lower in early trade on Monday as investors mulled the latest Chinese manufacturing data and news of further measures from authorities in China to boost consumption.
At 0915 BST, the FTSE 100 was down 0.2% at 7,676.16.

Victoria Scholar, head of investment at Interactive Investor, said: “This week is set to be another busy week in terms of earnings reports. Also ahead, the Bank of England looks set to raise interest rates on Thursday and the US non-farm payrolls report on Friday will potentially provide clues into the Fed’s next move.”

Data released earlier by the National Bureau of Statistics showed that manufacturing activity shrank for the fourth month in a row in China.

The manufacturing PMI for July rose to 49.3 from 49.0 in June. This remained below the 50 mark that separates contraction from expansion, although it was above consensus expectations of 48.9.

Meanwhile, the non-manufacturing PMI fell to 51.5 in July from 53.2 the month before, versus consensus expectations of 53.0.

ING said: “The decline in manufacturing eased slightly in July, but the non-manufacturing sector showed a larger-than-expected slowdown in growth and further falls could see it skirting with contraction.”

It added: “China’s official PMI data provides little encouragement that the economy is turning the corner.

“And while the authorities have been vocal in their support for the economy, so far, that has not translated into the sort of sizeable fiscal policy stimulus many in the market have become used to expecting. We don’t think it is coming.”

Also on Monday, Chinese authorities announced further measures to bolster consumption, targeting areas such as electric vehicles and housing and tourism.

In UK equity markets, education publisher Pearson fell even as it reported stronger first-half sales and a big jump in operating profits, along with an improved cash flow performance.

Building products manufacturer Marshalls tumbled as it warned on profits, said it will cut around 250 jobs and announced the closure of one of its factories as it pointed to high inflation, rising interest rates and weaker consumer confidence.

Vanquis Banking Group was weaker as it announced the acquisition of money-saving fintech Snoop for an undisclosed sum.

Senior was down despite posting a big jump in sales and profits for the first half of the year and announcing that it would double its interim dividend.

On the upside, Dr Martens surged as it emerged that activist investor Sparta Capital has built up a stake in the bootmaker.

Market Movers

FTSE 100 (UKX) 7,676.16 -0.24%
FTSE 250 (MCX) 19,078.45 -0.24%
techMARK (TASX) 4,439.50 -0.09%

FTSE 100 – Risers

Centrica (CNA) 136.70p 1.86%
International Consolidated Airlines Group SA (CDI) (IAG) 167.95p 1.70%
Standard Chartered (STAN) 744.20p 0.89%
Frasers Group (FRAS) 806.50p 0.88%
Melrose Industries (MRO) 528.20p 0.65%
Haleon (HLN) 339.10p 0.62%
Glencore (GLEN) 469.10p 0.56%
HSBC Holdings (HSBA) 649.10p 0.36%
Fresnillo (FRES) 608.40p 0.33%
Rio Tinto (RIO) 5,139.00p 0.27%

FTSE 100 – Fallers

Ocado Group (OCDO) 931.00p -4.65%
Kingfisher (KGF) 242.30p -1.94%
Rolls-Royce Holdings (RR.) 190.05p -1.68%
Persimmon (PSN) 1,156.50p -1.53%
Abrdn (ABDN) 232.20p -1.40%
IMI (IMI) 1,599.00p -1.24%
Coca-Cola HBC AG (CDI) (CCH) 2,326.00p -1.23%
Taylor Wimpey (TW.) 113.95p -1.21%
Informa (INF) 753.80p -1.18%
Diageo (DGE) 3,394.50p -1.14%

FTSE 250 – Risers

Dr. Martens (DOCS) 151.90p 3.97%
Ithaca Energy (ITH) 170.50p 3.71%
TUI AG Reg Shs (DI) (TUI) 620.50p 3.24%
Assura (AGR) 48.54p 2.28%
Harbour Energy (HBR) 258.40p 2.22%
Aston Martin Lagonda Global Holdings (AML) 386.20p 2.06%
Ferrexpo (FXPO) 92.50p 1.54%
Capita (CPI) 28.40p 1.50%
Diversified Energy Company (DEC) 94.10p 1.35%
Energean (ENOG) 1,135.00p 1.34%

FTSE 250 – Fallers

Marshalls (MSLH) 256.00p -7.31%
Vanquis Banking Group 20 (VANQ) 120.00p -6.40%
Senior (SNR) 165.00p -3.17%
Travis Perkins (TPK) 870.00p -2.29%
Balanced Commercial Property Trust Limited (BCPT) 68.80p -1.99%
FDM Group (Holdings) (FDM) 550.00p -1.96%
PZ Cussons (PZC) 165.00p -1.90%
Bridgepoint Group (Reg S) (BPT) 191.20p -1.90%
Liontrust Asset Management (LIO) 642.00p -1.83%
Wizz Air Holdings (WIZZ) 2,354.00p -1.59%

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