London midday: FTSE little changed after GDP; Admiral surges

London stocks were little changed by midday on Thursday as data showed the UK economy grew as expected in the second quarter, but Admiral surged after well-received results.

The FTSE 100 was down 0.1% at 8,277.19.

Figures released earlier by the Office for National Statistics showed the economy grew 0.6% in Q2, down slightly on 0.7% growth in the first quarter but in line with expectations.

The figures also revealed that on a monthly basis, the economy showed no growth in June, as expected.

Liz McKeown, director of economic statistics at the ONS, said: "The UK economy has now grown strongly for two quarters, following the weakness we saw in the second half of last year.

"Growth across the three months was led by the service sector, where scientific research, the IT industry and legal services all did well.

"In June growth was flat with services falling, due to a weak month for health, retailing and wholesaling, offset by widespread growth in manufacturing."

Ashley Webb, UK economist at Capital Economics, said: "Overall, today’s release doesn’t change our view that the Bank will keep interest rates on hold at 5.00% at the next policy meeting in September.

"But with the timely PMI data suggesting GDP growth slowed at the beginning of Q3, at the margin this lends a bit more support to our view that interest rates will be cut twice more this year, to 4.50%."

In equity markets, insurance group Admiral surged to the top of the FTSE 100 as it posted a better-than-expected 32% rise in half-year pre-tax profits to £310m, driven by an improved current year underwriting performance and claims releases.

It also declared an interim dividend of 71p a share including a special payout of 19.7p a share, up 39%. Analysts had forecast profit of £304m and dividend of 67.3p.

DCC was boosted by an upgrade to ‘outperform’ from ‘sector perform’ at RBC Capital Markets following recent weakness.

"Whilst we expect trading in Healthcare and especially Technology to remain tough, there is recovery potential over time," RBC said.

Magners and Tennent’s owner C&C Group gained after saying it was on course to achieve its earnings expectations for the full year.

Rank Group advanced after saying it swung back into the black in the year to the end of June as the Mecca Bingo and Grosvenor owner hailed a year of strong financial progress.

On the downside, Abrdn, Anglo American, Rio, Barclays, Shell, HSBC and Smurfit Westrock all fell as they traded without entitlement to the dividend.

OSB Group tumbled as it downgraded its net interest margin outlook. It now expects full-year underlying net interest margin of 230 to 240 basis points amid increased competition in the "subdued" mortgage market.

Market Movers

FTSE 100 (UKX) 8,277.19 -0.05%
FTSE 250 (MCX) 20,883.74 -0.33%
techMARK (TASX) 4,891.75 -0.08%

FTSE 100 - Risers

Admiral Group (ADM) 3,014.00p 7.26%
Beazley (BEZ) 738.00p 1.37%
DCC (CDI) (DCC) 5,245.00p 1.25%
Fresnillo (FRES) 547.50p 1.11%
Mondi (MNDI) 1,454.50p 1.08%
Vodafone Group (VOD) 75.30p 1.02%
Standard Chartered (STAN) 741.00p 1.01%
AstraZeneca (AZN) 13,030.00p 0.99%
Glencore (GLEN) 406.55p 0.83%
BP (BP.) 440.50p 0.80%

FTSE 100 - Fallers

Rio Tinto (RIO) 4,707.00p -3.01%
Airtel Africa (AAF) 109.00p -2.77%
Flutter Entertainment (DI) (FLTR) 15,885.00p -1.94%
Anglo American (AAL) 2,160.00p -1.73%
JD Sports Fashion (JD.) 120.90p -1.67%
Spirax Group (SPX) 7,475.00p -1.19%
Barclays (BARC) 219.20p -1.08%
Burberry Group (BRBY) 659.40p -1.05%
Hikma Pharmaceuticals (HIK) 2,068.00p -0.96%
HSBC Holdings (HSBA) 644.20p -0.86%

FTSE 250 - Risers

Patria Private Equity Trust (PPET) 565.00p 3.67%
Indivior (INDV) 976.50p 2.84%
Foresight Group Holdings Limited NPV (FSG) 510.00p 2.20%
Discoverie Group (DSCV) 649.00p 1.72%
Future (FUTR) 1,038.00p 1.47%
C&C Group (CDI) (CCR) 153.40p 1.19%
Aston Martin Lagonda Global Holdings (AML) 141.30p 1.15%
Vesuvius (VSVS) 406.50p 1.12%
Bodycote (BOY) 643.00p 1.10%
Senior (SNR) 167.20p 1.09%

FTSE 250 - Fallers

OSB Group (OSB) 400.60p -17.27%
Wizz Air Holdings (WIZZ) 1,251.00p -4.65%
Abrdn (ABDN) 149.40p -4.29%
Harbour Energy (HBR) 280.40p -3.51%
NextEnergy Solar Fund Limited Red (NESF) 80.55p -2.95%
Scottish American Inv Company (SAIN) 505.00p -2.32%
Ocado Group (OCDO) 369.00p -2.25%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 687.30p -2.02%
Tritax Eurobox (GBP) (EBOX) 66.80p -1.91%
Diversified Energy Company (DEC) 1,048.00p -1.87%