London midday: FTSE extends gains as miners rally; GDP data in focus

London stocks had extended gains by midday on Monday thanks to a strong showing in the mining sector, as investors mulled weaker-than-expected UK GDP data.

The 100 was up 1.4% at 7,451.01, while sterling was 0.8% higher against the dollar at 1.1679.

Figures released earlier by the Office for National Statistics showed that GDP rose 0.2% following a 0.6% decline in June, coming in below economists’ expectations of 0.5% growth.

The services sector was the main driver of the rise in GDP, with growth of 0.4% in July, up from 0.5% the month before.

Meanwhile, production contracted by 0.3% following a 0.9% decline in June, mainly due to a fall of 3.4% in electricity, gas, steam, and air conditioning supply. Construction fell 0.8% in July following a 1.4% contraction the month before. This came solely from repair and maintenance, which fell 2.6%.

This marked the second consecutive contraction for production and construction.

The ONS said monthly GDP is now estimated to be 1.1% above its pre-Covid level in February 2020.

Russ Mould, investment director at AJ Bell, said "disappointing UK GDP figures failed to derail the country’s main stock indices on Monday".

"The mere 0.2% advance in the UK economy in July would suggest consumers have been tightening their belts as they continue to feel the pain from rising inflation. With US inflation figures out tomorrow and the UK’s next numbers coming on Wednesday, investors could be facing some grim news this week if the cost of living keeps going up, which may serve to destabilise equity markets," he said.

In equity markets, miners were the standout gainers as metals prices rose, with Anglo American, Glencore and Rio Tinto all higher.

Residential property business Grainger rose as it said rents had grown 4.5% year-to-date on a like-for-like basis amid "strong" rental market conditions in the second half of the trading year.

Ladbrokes owner Entain was in focus Australia's financial crimes regulator said it would be investigating the company’s compliance with anti-money laundering and counter-terrorism financing laws.

On the downside, government contractor Serco fell as it said chief executive Rupert Soames would retire in September 2023 and step down both from the board at the end of this December 2022. He will be succeeded by Mark Irwin, who is currently the CEO of Serco's UK & Europe Division.

Tate & Lyle was knocked lower by a downgrade to ‘hold’ at Jefferies.

Market Movers

FTSE 100 (UKX) 7,451.01 1.36%
FTSE 250 (MCX) 19,418.46 1.20%
techMARK (TASX) 4,353.31 1.24%

FTSE 100 - Risers

Anglo American (AAL) 3,056.50p 4.44%
Sainsbury (J) (SBRY) 211.50p 4.39%
Kingfisher (KGF) 252.50p 4.30%
JD Sports Fashion (JD.) 131.10p 3.97%
Howden Joinery Group (HWDN) 607.60p 3.90%
Tesco (TSCO) 249.00p 3.79%
Smurfit Kappa Group (CDI) (SKG) 2,999.00p 3.52%
Glencore (GLEN) 505.20p 3.44%
Ocado Group (OCDO) 781.00p 3.20%
B&M European Value Retail S.A. (DI) (BME) 361.30p 3.05%

FTSE 100 - Fallers

M&G (MNG) 200.50p -1.76%
Melrose Industries (MRO) 125.50p -1.45%
Centrica (CNA) 85.98p -1.06%
National Grid (NG.) 1,069.00p -0.19%
Avast (AVST) 716.60p 0.00%
Intermediate Capital Group (ICP) 1,284.00p 0.04%
London Stock Exchange Group (LSEG) 8,010.00p 0.07%
Meggitt (MGGT) 799.40p 0.10%
Imperial Brands (IMB) 1,957.00p 0.23%
Prudential (PRU) 964.40p 0.31%

FTSE 250 - Risers

Ferrexpo (FXPO) 173.60p 11.21%
Wood Group (John) (WG.) 141.30p 6.60%
NCC Group (NCC) 233.50p 6.38%
Marks & Spencer Group (MKS) 124.30p 5.65%
HGCapital Trust (HGT) 384.50p 4.34%
Bridgepoint Group (Reg S) (BPT) 269.20p 3.94%
TUI AG Reg Shs (DI) (TUI) 143.55p 3.87%
Future (FUTR) 1,708.00p 3.64%
BlackRock World Mining Trust (BRWM) 628.00p 3.63%
ASOS (ASC) 697.50p 3.56%

FTSE 250 - Fallers

Serco Group (SRP) 169.90p -5.72%
Tate & Lyle (TATE) 731.20p -3.94%
BH Macro Ltd. GBP Shares (BHMG) 4,755.00p -2.36%
Games Workshop Group (GAW) 7,360.00p -1.87%
Darktrace (DARK) 374.80p -1.16%
Telecom Plus (TEP) 1,774.00p -1.00%
Vistry Group (VTY) 792.50p -0.94%
Abrdn Private Equity Opportunities Trust (APEO) 428.00p -0.93%
NB Private Equity Partners Ltd. (NBPE) 1,615.00p -0.92%
CMC Markets (CMCX) 227.50p -0.87%