London midday: Investors take profits after UK stocks reach record highs

After reaching new heights on Tuesday, the Footsie was firmly in the red by Wednesday lunchtime as investors took profits following the recent rally as they assessed a barrage of corporate earnings in London.

The FTSE 100 was down 0.3% at 6,927.27 by midday, retreating after hitting a new record close of 6,949.63. The index also jumped to a fresh all-time intraday high of 6,958.89 during the previous session.

“Once again the FTSE appears to be suffering from stage fright as the looming 7,000 level, for so long predicted to be broken, has yet again proven to be a step too far,” said analyst Alastair McCaig from IG.

“Corporate data releases continue to come thick and fast offering equity traders plenty to chew on,” he said.

Tuesday’s gains came on the back of an approval for Greece’s four-month bailout extension and relatively dovish comments from Federal Reserve chair Janet Yellen, who said that the central bank would still take a cautious approach to raising rates.

In economic data on Wednesday, China’s manufacturing sector returned to growth this month, with the HSBC purchasing managers’ index rising from 49.7 to 50.1, surprising those who had expected a fall to 49.5. A figure above 50 represents expansion.

Closer to home, mortgage approvals in the UK increased more than expected in January, the British Banker's Association said. The number of mortgage approvals rose to 36,400 in January against 35,700 the previous month and forecasts of 36,2000. This was the first increase since June last year.

Investors digest earnings flurry

Wealth management group St James’s Place impressed City analysts on Wednesday with a solid set of annual results, as strong cash generation led it to hike its final dividend by 50%. Operating profits on a EEV basis were 29% higher at £596.4m, well ahead of the consensus forecast of £533m.

Hospitality group Whitbread rose after saying it expects full-year results to come in at the top end of expectations after a strong fourth quarter from its Premier Inn and Costa brands.

Morrisons reassured investors with the quick appointment of a new chief executive after Dalton Philips was pushed out of the company earlier this month after five years at the helm. The company named the former head of Tesco’s Asian business, David Potts, as its boss.

First-half profits from Barratt Developments were up 74.6% at £210.2m helping the stock to edge higher.

Shares in Sky poured on respectable gains after Citigroup retained a ‘buy’ recommendation on the stock and promoted it to the bank's ‘Focus List Europe’, as it raised its price target to 1,200p from 1,075p.

Among the fallers was electrical appliances retailer AO World which plummeted 29% after forecasting full-year results “slightly below market expectations” after a harder fourth quarter.

Shares in engineering outfit Weir also took a hard hit, dropping nearly 10% after the company warned that the sharp decline in the price of oil will have a "significant reduction" in constant currency group revenues this year.

Market Movers
techMARK 3,141.59 -0.29%
FTSE 100 6,927.27 -0.32%
FTSE 250 17,164.51 -0.22%

FTSE 100 - Risers
St James's Place (STJ) 934.50p +4.76%
Sky (SKY) 1,002.00p +2.87%
Whitbread (WTB) 5,225.00p +2.35%
Mondi (MNDI) 1,337.00p +2.06%
Ashtead Group (AHT) 1,173.00p +1.91%
Kingfisher (KGF) 347.90p +1.81%
Glencore (GLEN) 300.45p +1.71%
Tesco (TSCO) 242.15p +1.57%
Antofagasta (ANTO) 765.50p +1.46%
Persimmon (PSN) 1,671.00p +1.27%

FTSE 100 - Fallers
Weir Group (WEIR) 1,684.00p -9.61%
GKN (GKN) 365.00p -2.30%
Standard Chartered (STAN) 929.60p -2.21%
Intertek Group (ITRK) 2,418.00p -2.11%
Experian (EXPN) 1,179.00p -1.42%
Imperial Tobacco Group (IMT) 3,115.00p -1.24%
Smiths Group (SMIN) 1,149.00p -1.20%
SABMiller (SAB) 3,651.00p -1.20%
Smith & Nephew (SN.) 1,170.00p -1.18%
Royal Dutch Shell 'A' (RDSA) 2,105.50p -1.13%

FTSE 250 - Risers
Petrofac Ltd. (PFC) 878.50p +7.79%
NMC Health (NMC) 536.00p +3.08%
PayPoint (PAY) 890.00p +2.65%
Tullett Prebon (TLPR) 342.90p +2.36%
Acacia Mining (ACA) 277.10p +2.02%
Galliford Try (GFRD) 1,479.00p +1.79%
Just Retirement Group (JRG) 169.00p +1.62%
Home Retail Group (HOME) 206.70p +1.62%
Greene King (GNK) 866.50p +1.58%
Vedanta Resources (VED) 593.00p +1.45%

FTSE 250 - Fallers
AO World (AO.) 199.20p -29.11%
Hays (HAS) 149.70p -6.32%
Afren (AFR) 10.00p -4.76%
International Personal Finance (IPF) 445.50p -4.69%
COLT Group SA (COLT) 146.80p -3.67%
Supergroup (SGP) 980.00p -3.35%
IMI (IMI) 1,388.00p -3.34%
Telecom Plus (TEP) 1,106.00p -2.56%
Bwin.party Digital Entertainment (BPTY) 88.65p -2.04%
Polymetal International (POLY) 568.00p -1.98%