London close: FTSE barges higher after CPI, with consumer goods, miners leading
(ShareCast News) - Stocks in London barged higher in the aftermath of an unanticipated rise in UK inflation, with consumer-sector and mining equities prominent at the top end of the blue-chip ladder.
The FTSE 100 closed up 0.91% to 7,522.03, and the FTSE 250 ended 0.63% higher at 19,875.89. This was as the Euro Stoxx 50, Dax and Cac 40 eased, while Wall St was mixed in its morning session.
"While the FTSE 100 has continued to clock up record highs this afternoon, the same cannot be said of the S&P 500 and Dow Jones," said IG chief market analyst Chris Beauchamp.
"Both indices seem stuck in limbo, unable to move higher."
Jasper Lawler, senior market analyst at London Capital Group, observed that the FTSE 100 reached a new milestone today when it hit 7500 for the first time.
"Investors seem to be feeling confident about the outlook for Britain under what is expected to be the biggest Conservative party majority since Margaret Thatcher," he said.
Michael Hewson, chief market analyst at CMC Markets UK, said the apparent indecision that appeared prevalent around the 7450 area yesterday was conspicuous by its absence today.
He cited Vodafone's rise on its full-year results as notable, and also consumer goods companies Reckitt Benckiser and Unilever.
Against this fabric, the UK consumer-price index (CPI) rose to 2.7% on the year in April, which was above March's 2.3% and forecasts for 2.6%. Bank of England's target was 2%.
Core CPI advanced 0.5% month-on-month and 2.4% year-on-year, up from 1.8% the month before and above forecasts as retailers hiked prices to account for sterling's depreciation since the UK voted for Brexit.
Connor Campbell, financial analyst at SpreadEx said in previous months CPI's hitting it highest level since autumn 2013 would have caused a bit of a headache for the UK index.
"However, the Bank of England appears reluctant to combat rising prices with a rate hike; combine that with the alarming squeeze on real wages and the pound has little reason for cheer, something that only works in the FTSE's favour," he said.
The pound was buffeted lower on the CPI data, but was on the march higher late this afternoon.
Taking a closer look at the FTSE 100, it was consumer-sector and mining companies doing well.
Of the former, Kingfisher, Diageo, British American Tobacco and Next all performed positively, while among miners it was Rio Tinto, Fresnillo and Antofagasta doing well.
Vodafone rallied as it posted a €6.1bn loss for the year to the end of March, mostly on the back of a €3.7bn writedown of its Indian unit. Investors welcomed its EBITDA guidance for full-year 2018 of €14bn-€14.5bn, versus consensus expectations of €13.8bn.
easyJet flew lower after reporting a larger than expected headline loss before tax of £212m, which included around a £45m impact from Easter not falling in the first half and a negative net currency impact of £82m.
Business support group DDC was on the back foot as it said full year pre-tax profits rose 23.7% to £268.2m on the back of a 17% rise in revenue to £12.2bn, while CYBG fell as its first-half underlying pre-tax profit of £123m missed consensus expectations of £131m.
FTSE 100 (UKX) 7,522.03 0.91%
FTSE 250 (MCX) 19,875.89 0.63%
techMARK (TASX) 3,614.70 0.66%
FTSE 100 - Risers
Vodafone Group (VOD) 219.45p 3.96%
Fresnillo (FRES) 1,563.00p 2.90%
Rio Tinto (RIO) 3,100.50p 2.68%
Kingfisher (KGF) 358.20p 2.64%
BT Group (BT.A) 309.85p 2.09%
Reckitt Benckiser Group (RB.) 7,516.00p 2.08%
British American Tobacco (BATS) 5,505.00p 2.06%
Diageo (DGE) 2,328.00p 2.02%
Antofagasta (ANTO) 807.00p 1.96%
Convatec Group (CTEC) 301.20p 1.79%
FTSE 100 - Fallers
Hargreaves Lansdown (HL.) 1,324.00p -8.50%
easyJet (EZJ) 1,215.00p -7.25%
Micro Focus International (MCRO) 2,424.00p -3.04%
Severn Trent (SVT) 2,393.00p -1.48%
United Utilities Group (UU.) 1,011.00p -1.46%
DCC (DCC) 7,270.00p -1.29%
TUI AG Reg Shs (DI) (TUI) 1,119.00p -1.24%
Pearson (PSON) 687.50p -1.08%
Direct Line Insurance Group (DLG) 347.70p -0.86%
Intu Properties (INTU) 273.50p -0.76%
FTSE 250 - Risers
Kaz Minerals (KAZ) 493.40p 6.66%
Ocado Group (OCDO) 280.90p 6.16%
Hill & Smith Holdings (HILS) 1,388.00p 5.31%
Countryside Properties (CSP) 291.90p 5.04%
Ascential (ASCL) 354.00p 4.70%
Dechra Pharmaceuticals (DPH) 1,849.00p 3.88%
Acacia Mining (ACA) 426.20p 3.88%
Cobham (COB) 136.90p 3.71%
NMC Health (NMC) 2,159.00p 3.55%
Senior (SNR) 223.80p 2.71%
FTSE 250 - Fallers
BTG (BTG) 673.00p -6.79%
CYBG (CYBG) 280.60p -3.27%
Ted Baker (TED) 2,512.00p -2.82%
Wizz Air Holdings (WIZZ) 1,892.00p -2.62%
Crest Nicholson Holdings (CRST) 620.00p -2.59%
Henderson Group (HGG) 237.50p -2.46%
Aberdeen Asset Management (ADN) 294.30p -1.54%
Man Group (EMG) 159.20p -1.24%
Phoenix Group Holdings (DI) (PHNX) 748.50p -1.12%
AA (AA.) 244.20p -1.05%