London midday: Eurozone data and Greek optimism push UK stocks higher

UK stocks neared an all-time high on Friday morning after upbeat data on the Eurozone economy, as investors showed optimism ahead of an emergency meeting about Greek debt.

Markets mostly shrugged off weak economic data from the UK, where retail sales fell more than expected in January.

London’s FTSE 100 was up 0.3% at 6,909.55 by midday, surpassing the current 15-year high of 6,898.13 it hit on Tuesday, as strong gains from Standard Life and the energy sector provided a boost.

The index is now within a whisker of the all-time closing record of 6,930.20 reached in December 1999.

Greece's political leaders return to the negotiating table with European finance ministers later on Friday, even though Germany has already rejected a more conciliatory loan extension.

However, that the Eurogroup meeting in Brussels will still go ahead, at 14:00 UK time, suggests Eurozone authorities view progress as achievable, most likely anticipating further climbdowns from Greece.

On Friday, a spokesman for the Greek government said it had "done all it should at every level in an effort to find a mutually beneficial solution" for its creditors but will not be pushed to implementing the existing bailout program agreed by the previous government.

Economic data

Business activity growth in the Eurozone as measured by Markit’s composite purchasing managers’ index (PMI) rose to a seven-month high in February. The ‘flash’ reading of the PMI increased from 52.6 to 53.5 this month.

“February’s PMI surveys paint an upbeat picture of improving Eurozone economic health,” said Markit chief economist Chris Williamson.

Closer to home, UK retail sales fell 0.3% month-on-month in January, worse than the 0.2% drop expected and reversing after a 0.2% increase the month before. Excluding auto, retail sales slumped 0.7%, more than the 0.3% decline predicted.

Standard Life and oil stocks rise

Insurance giant Standard Life impressed after beating forecasts with a 19% increase in annual operating profit before tax from continuing operations to £604m, while the total dividend was lifted 7.8% to 17.03p per share. The recent acquisition of Ignis also helped it to increase assets under administration by 38% in 2014.

Oil and gas stocks such as Tullow Oil, BG Group and Shell were among the best performers after Brent crude held above $60 a barrel after falling to as low as $57 on Thursday.

Serco was higher after Credit Suisse upgraded its rating on the outsourcing group to ‘neutral’ and hiked its target price from 142p to 208p.

DIY retailer Kingfisher however was lower after Barclays Capital cut its recommendation to ‘underweight’, while housebuilder Persimmon was lowered to ‘neutral’ by JPMorgan Cazenove.

Essentra, the plastic, fibre and foam products group, advanced after exceeding expectations for 2014 with like-for-like revenue up 9% and adjusted earning per share up 19%.

Market Movers
techMARK 3,133.79 +0.02%
FTSE 100 6,909.55 +0.30%
FTSE 250 17,021.13 -0.17%

FTSE 100 - Risers
Tullow Oil (TLW) 408.10p +2.49%
Glencore (GLEN) 290.60p +2.49%
Weir Group (WEIR) 1,905.00p +2.31%
Standard Life (SL.) 417.40p +2.18%
Anglo American (AAL) 1,248.00p +2.04%
Coca-Cola HBC AG (CDI) (CCH) 1,145.00p +1.78%
BG Group (BG.) 967.20p +1.65%
Lloyds Banking Group (LLOY) 78.16p +1.20%
Johnson Matthey (JMAT) 3,475.00p +1.11%
Barclays (BARC) 263.30p +1.11%

FTSE 100 - Fallers
Persimmon (PSN) 1,672.00p -2.17%
Centrica (CNA) 251.90p -2.02%
Hammerson (HMSO) 661.50p -1.64%
Randgold Resources Ltd. (RRS) 4,946.00p -1.57%
Kingfisher (KGF) 342.60p -1.52%
International Consolidated Airlines Group SA (CDI) (IAG) 555.50p -1.51%
easyJet (EZJ) 1,760.00p -1.40%
British Land Co (BLND) 813.50p -1.33%
Fresnillo (FRES) 827.50p -1.08%
Royal Mail (RMG) 423.90p -1.05%

FTSE 250 - Risers
Serco Group (SRP) 215.00p +7.29%
Cairn Energy (CNE) 206.40p +4.40%
Nostrum Oil & Gas (NOG) 600.00p +2.92%
Essentra (ESNT) 909.50p +2.77%
Kaz Minerals (KAZ) 259.20p +2.65%
Vedanta Resources (VED) 590.00p +2.61%
Premier Oil (PMO) 179.10p +2.34%
Bovis Homes Group (BVS) 935.50p +2.07%
Evraz (EVR) 194.30p +1.94%
Keller Group (KLR) 957.50p +1.81%

FTSE 250 - Fallers
Afren (AFR) 10.00p -5.75%
Bank of Georgia Holdings (BGEO) 2,069.00p -3.32%
Galliford Try (GFRD) 1,418.00p -3.14%
Centamin (DI) (CEY) 64.55p -2.20%
Homeserve (HSV) 332.10p -2.01%
Atkins (WS) (ATK) 1,368.00p -1.94%
Infinis Energy (INFI) 194.30p -1.92%
Alent (ALNT) 339.80p -1.79%
Bwin.party Digital Entertainment (BPTY) 87.65p -1.79%
Barr (A.G.) (BAG) 648.50p -1.74%