London midday: Greek hopes lift stocks as FTSE nears record high

UK stocks edged higher after a slow start on Tuesday as investors expressed hopes that a deal can be struck to give Greece extra time, though upside was limited as markets neared their record highs.

The FTSE 100 was up 0.15% at 6,922.77 by midday. The index is now within a whisker of the all-time closing high of 6,930.20 reached in late-December 1999 and the record intra-day high of 6,950.60.

Greece submitted a list of economic reforms in the nick of time on Monday for European leaders to approve its request for a four-month bailout extension. The proposals, which include efforts to crack down on tax evasion and corruption, are a necessary condition for the Troika to approve a provisional deal agreed last week to extend Greece’s €172bn aid package until June.

An official at the European Commission said the list was “sufficiently comprehensive to be a valid starting point for a successful conclusion of the review”.

“Signs point to a conciliatory and wide-reaching set of measures that, in theory, should appease Greece’s Eurozone naysayers. These gradual spurts of information generally pleased investors, with the Eurozone indices continuing to strive for new record highs,” said analyst Connor Campbell from Spreadex.

Federal Reserve chair Janet Yellen will also be in focus on Tuesday as she gives her semi-annual testimony to the Senate Banking Committee. Analysts are expecting a hawkish stance from the Fed chair as markets await hints about when the central bank will begin to raise interest rates.

“For the market, the risk is that Yellen may sound more upbeat on the economy in light of the strong January employment report, and possibly make the case to Congress that the time is approaching for the Fed to begin the process of policy normalisation,” according to analysts at Deutsche Bank.

BHP Billiton jumps after profit beat

Mining giant BHP Billiton jumped after beating forecasts with a less-than-expected decline in earnings in the first half. Underlying operating profits fell 12.3% year-on-year to $14.49bn, compared with consensus forecasts of $13.62bn. The group also pledged to keep its dividend policy unchanged despite the proposed de-merger of its non-core operations.

Other miners were also performing well, such as Glencore and Anglo American.

Engineering group Meggitt declined as it reported a 13% fall in underlying pre-tax profit in 2014 following a “challenging year”.

Sector peer GKN also underwhelmed despite beating forecasts with a 4% increase in pre-tax profit in 2014. Numis downgraded the stock from ‘add’ to ‘hold’ after a strong run in the shares over recent months.

Persimmon also failed to impress despite meeting expectations with a 44% increase in underlying pre-tax profits in 2014 and accelerating its proposed cash return plan. The stock however was reversing after having jumped 18% since mid-January.

Paper and packaging group Mondi rose after revealing that profit before tax rose 24% to €619m in 2014 while its full-year dividend was lifted 17%.

Pension provider Just Retirement surged after saying it delivered “resilient profits” despite changes made to the annuity market in the government Budget last year. Annuity sales were down just 4% on the pre-Budget comparison period, it said.

Market Movers
techMARK 3,142.61 -0.48%
FTSE 100 6,922.77 +0.15%
FTSE 250 17,129.64 -0.22%

FTSE 100 - Risers
BHP Billiton (BLT) 1,620.00p +4.72%
Tullow Oil (TLW) 402.80p +2.73%
SSE (SSE) 1,570.00p +2.28%
Hargreaves Lansdown (HL.) 1,104.00p +2.22%
Glencore (GLEN) 292.95p +2.04%
Mondi (MNDI) 1,299.00p +1.72%
Anglo American (AAL) 1,216.50p +1.54%
Dixons Carphone (DC.) 450.00p +1.35%
BG Group (BG.) 974.10p +1.32%
Antofagasta (ANTO) 742.00p +1.30%

FTSE 100 - Fallers
Meggitt (MGGT) 544.50p -4.64%
Persimmon (PSN) 1,647.00p -3.68%
GKN (GKN) 373.70p -3.19%
Taylor Wimpey (TW.) 141.30p -2.75%
Vodafone Group (VOD) 226.55p -2.64%
St James's Place (STJ) 885.00p -2.05%
Weir Group (WEIR) 1,843.00p -1.92%
Rolls-Royce Holdings (RR.) 932.50p -1.84%
Sports Direct International (SPD) 689.50p -1.57%
Travis Perkins (TPK) 2,003.00p -1.43%

FTSE 250 - Risers
Just Retirement Group (JRG) 166.90p +16.23%
Afren (AFR) 10.70p +12.81%
Genus (GNS) 1,385.00p +7.45%
Serco Group (SRP) 216.40p +2.41%
NMC Health (NMC) 519.50p +2.26%
Synthomer (SYNT) 266.60p +2.15%
Wood Group (John) (WG.) 646.00p +2.13%
Premier Oil (PMO) 172.00p +2.08%
AL Noor Hospitals Group (ANH) 965.50p +1.85%
Lancashire Holdings Limited (LRE) 674.50p +1.81%

FTSE 250 - Fallers
Victrex plc (VCT) 1,975.00p -6.71%
Bank of Georgia Holdings (BGEO) 1,847.00p -5.77%
Inmarsat (ISAT) 857.50p -3.38%
UBM (UBM) 534.00p -3.17%
Euromoney Institutional Investor (ERM) 1,028.00p -3.02%
Galliford Try (GFRD) 1,451.00p -2.94%
AO World (AO.) 282.90p -2.68%
Countrywide (CWD) 506.50p -2.60%
Bovis Homes Group (BVS) 926.50p -2.58%
Greggs (GRG) 841.00p -2.49%