Weak markets see sales fall at SIG, Ferrexpo iron pellet production rises in second quarter
London open
The FTSE 100 is expected to open nine points lower on Friday, having closed down 0.08% at 7,603.58 on Thursday.
Stocks to watch
Weak construction markets in the UK and Ireland have let to a 3.8% fall in first half like-for-like sales at building materials supplier SIG. The company, which supplies insulation, energy management and roofing products, said there had been a “marked deterioration” in UK building activity. British and Irish LFL sales fell 12.7%.
James Fisher and Sons has recruited Eoghan O'Lionaird from Spectris as the marine services company's next chief executive. O'Lionaird will join James Fisher's board on 1 September and replace Nick Henry as CEO on 1 October.
Ferrexpo reported an 11% increase in second quarter iron pellet production, returning to production growth following a 2% drop in the previous quarter. The Ukrainian pellet producer added that it expected first-half sales volumes to have increased by 4%, while average prices received jumped by 29% compared to the 2018 average due to stronger iron ore prices and premiums for iron ore pellets.
Newspaper round-up
A quarter of betting shops on UK high streets have been slated for closure, putting 12,000 jobs at risk, with William Hill the latest bookmaker to blame job cuts on stricter regulation of fixed-odds betting terminals (FOBTs). Restrictions cutting the maximum stake on the controversial betting machines from £100 per spin to £2 came into force in April after a lengthy campaign by activists and MPs, who linked the controversial machines to gambling addiction. – Guardian
Confidence among British business leaders has been knocked by Theresa May’s resignation and uncertainty over who will succeed her as prime minister, according to a survey. Firms became more pessimistic about the economic outlook, with a key confidence measure falling to a six-month low of -28% in early June from -19% in April in a survey by the Institute of Directors. The figure reflects a net balance of firms saying the economy would improve minus those expecting a deterioration. The findings are based on a poll of 900 company directors carried out between 22 May and 5 June. May announced her resignation on 24 May. – Guardian
Philip Hammond’s new tax on digital businesses should be scrapped because it is not necessary, risks harming far more companies than anticipated and makes Britain look hostile to cutting-edge technology, the Confederation of British Industry has warned. Social networks, search engines and online marketplaces face a 2pc levy on their revenues from April 2020. – Telegraph
Retail investors have turned positive on UK shares for the first time in more than two years, new figures show. UK-focused funds were the best-selling by region in May, with net sales of £532 million, according to the Investment Association. It is the first time since April 2017 that UK equity funds enjoyed net inflows. – The Times
Shareholders in J Sainsbury still believe its chief executive is the man for the job, even if some think that he is not offering value for money. Mike Coupe, 58, was re-elected by 99.5 per cent of the shareholders who voted at the supermarket’s annual general meeting yesterday, despite his tenure being called into question by some in the City and retail investors after the implosion of a tie-up with Asda. - The Times
US close
Wall Street markets were closed on Thursday for the Independence Day holiday.
On Wednesday, the Dow Jones Industrial Average closed up 0.93% at 26,966.00, the S&P 500 added 0.77% to 2,995.82, and the Nasdaq 100 was ahead 0.74% at 7,857.69.