LondonMetric sells three retail parks, Hikma nudges dividend higher

London open

The FTSE 100 is expected to open six points higher on Wednesday, after closing down 0.13% at 7,357.85 on Tuesday.

Stocks to watch

AstraZeneca said results from the Phase 3 trial of its ovarian cancer treatment Lynparza had demonstrated a “significant improvement in progression-free survival” (PFS). The SOLO-2 trial of patients taking 300 milligrams twice a day met its primary endpoint of investigator assessed PFS. Eric Pujade-Lauraine, Head of the women cancers and clinical research department at Hôpitaux Universitaires Paris Centre and principal investigator of SOLO-2, said: "Today's results are very encouraging, as they build upon previous trials examining Lynparza in platinum-sensitive relapsed BRCA-mutated ovarian cancer.”

FTSE 250 investor LondonMetric Property sold three retail parks in Christchurch, Bedford and Maidstone for a collected £60.9m. The proceeds from the sale will be invested into the company’s logistics investment and development programmes “where rental growth prospects look more attractive”.

Hikma nudged its dividend higher as operating profits were held back last year due to a combination of lower profits from the generics business, greater investment in growth and currency effects. On revenue up 39% to $1.95bn over the calendar year, the FTSE 100 drug maker generated operating profits of $302m, which were down 21% on the previous year, though excluding exceptional items like acquisition costs, write-downs and inventory adjustments, core operating profits were up 2% to $419m.

Polymetal International announced its preliminary results for the year to 31 December on Wednesday, with revenue increasing 10% over 2015 to $1.58bn. The FTSE 250 firm said average realised gold and silver prices increased by 8% and 11% respectively, with all-in sustaining cash costs amounting to $776 per gold equivalent ounce, up 6% year-on-year. Adjusted EBITDA was $759m, an increase of 15% year-on-year, on the back of higher commodity prices and stable production.

Newspaper round-up

The UK construction industry could lose more than 175,000 EU workers – or 8% of the sector’s workforce – if the country does not retain access to the European single market after Brexit, the government has been told. Such an outcome could put key infrastructure and construction projects at risk at a time when the sector was also facing other pressures, including the tax changes in the recent budget, said the Royal Institution of Chartered Surveyors (Rics). – Guardian

Hundreds of high street jobs are at risk at Jones Bootmaker as the retailer teeters on the brink of administration. The 160-year-old chain, which is owned by private equity firm Alteri, has filed a notice of intention to appoint administrators as it seeks a buyer. – Guardian

The chief executive of Unilever has added his voice to the debate around UK takeovers and defending national champions in the wake of Kraft Heinz’s failed £115bn swoop for his company. Paul Polman had swiftly rejected the approach from Unilever’s US rival, which makes less than half of the Anglo-Dutch giant’s annual sales, saying that its low-ball $50-a-share proposal was not “the basis for any further discussions”. – Telegraph

A technology company that wants to make renting a house as easy as shopping online or ordering a takeaway has secured £7.2m funding to help provide accommodation for the ever-increasing number of renters. Goodlord, which was founded two years ago, has agreed a deal with Ribbit Capital, one of Silicon Valley's largest investors in financial tech, and LocalGlobe that it will use to hire dozens more staff as part of its bid to dominate in the rental space. - Telegraph

There were fewer and smaller loans to movers in January as the lull in house buying activity became entrenched. The number of loans taken out by movers in January fell to 23,000, down 7 per cent year on year and 27 per cent month on month. Existing owners borrowed £4.9 billion, down 4 per cent compared with last January and 25 per cent compared with December, according to the Council of Mortgage Lenders. – The Times

Emma Walmsley, incoming chief executive of Glaxosmithkline, has been handed a pay package worth about 25 per cent less than her predecessor. The FTSE 100-listed drugs company said Ms Walmsley, who takes on the top job next month, would be paid a salary of £1 million. Her predecessor Sir Andrew Witty received £1.1 million. – The Times

US close

US stocks ended lower on Tuesday as weak oil prices hit energy shares, while investors looked ahead to the latest Federal Reserve rate announcement.

The Dow Jones Industrial Average closed down 0.2% to 20,837.37, the S&P 500 fell 0.3% to 2,365.45 and the Nasdaq ended 0.3% lower at 5,856.82.

Storm Stella descended on the East Coast, resulting in thousands of cancelled flights and hitting trading volumes as a state of emergency was declared in New York. Nevertheless, the Fed went ahead with the first day of its policy meeting.

In currency markets, the dollar was up 0.6% against the pound, underpinned by expectations of a rate hike. Earlier in the session, sterling fell to an eight-week low versus the greenback as investors worried about the prospect of a hard Brexit and news that Scotland was calling for another independence referendum.

With investors pricing in a 25 basis point rate hike by the Fed on Wednesday to between 0.75% and 1.00%, the main focus is likely to be on the ‘dot plot’ for future rate hike projections and any hawkish signs from the US central bank.

Markets have currently priced in a 60% chance of three rate hikes this year and this could increase if there are some hawkish comments from Fed chair Janet Yellen.