London midday: Stocks flat as investors sift through earnings

London stocks were little changed by midday on Thursday as investors sifted through a raft of earnings releases and paused for breath after the blue-chip index hit new highs in the previous session.

The FTSE 100 was down 0.1% to 7,377.98. On Wednesday, the index hit a fresh intraday record high of 7,383.05 and closed at a record high of 7,382.9.

Meanwhile, on Wall Street, the Dow Jones rose more than 300 points to close at a new record high of 21,115.

Brexit was in focus after members of the House of Lords voted late on Wednesday to amend Article 50 legislation to include a guarantee for EU citizen living in the UK to stay after the country leaves the European Union.

On the macroeconomic front, market participants were digesting data showing the pace of UK construction growth unexpectedly improved in February thanks to strength in civil engineering.

The Markit/CIPS UK construction purchasing managers’ index rose to 52.5 from 52.24 in January, above the 50 mark that separates contraction from expansion for the sixth consecutive month.

Economists had been expecting the reading to remain unchanged at 52.5.

Howard Archer, chief UK and European economist at IHS Markit, said: “This is a largely uninspiring report indicating a lacklustre construction sector – while there is a modest rise in the activity index from January’s four-month low, it is worrying that orders growth was the weakest since October and limited. Furthermore, high price pressures are a serious concern.”

In corporate news, Cobham gained ground as it announced a £500m rights issue after it sank to a huge £848m loss last year.

Medical technologies company ConvaTec was a high riser after it said 2016 adjusted revenue grew 2.3% to $1.69bn, or 4% at constant exchange rates.

Challenger bank Aldermore was also on the front foot as it posted a 34% jump in full-year profit.

Insurer Hastings Group advanced as it reported a 5% rise in full-year operating profit as gross written premiums grew.

Budget Eastern Europe-focused airline Wizz Air pushed higher as it said passenger numbers rose 21.8% in February, while Spire Healthcare racked up healthy gains after reporting an increase in full-year profit after tax and revenue.

Melrose Industries surged as it said full-year revenues more than tripled and it is on the lookout for its next acquisition.

Vesuvius rocketed after it reported a rise in revenue as it benefited from weak sterling while the molten metal flow engineer embarked on a restructuring programme to cut costs in 2016.

On the downside, Schroders fell after it reported a 27% increase in its full-year assets under management to £397.1bn, which drove a 6% rise in profit before tax and exceptionals to £644.7m.

Outsourcing firm Capita, booted from the FTSE 100 index on Wednesday, tanked after it reported a 33% slump in profits to £74.8m as its chief executive Andy Parker announced his resignation following a string of earnings warnings.

Legoland and Madame Tussauds owner Merlin Entertainments dropped despite posting a rise in revenue and visitors for 2016 following a recovery in its resort theme parks.

Building materials supplier Travis Perkins slumped after it said pre-tax profit for the year dropped 67% on the back of exceptional charges.

RSA Insurance was weaker as its went ex-dividend.

Debenhams slumped after a downgrade by Berenberg, but RBS was lifted by an upgrade from the same outfit.

Meanwhile, British Airways and Iberia parent International Consolidated Airlines Group flew lower after being cut to ‘reduce’ by HSBC.

Market Movers

FTSE 100 (UKX) 7,377.98 -0.07%
FTSE 250 (MCX) 18,888.16 -0.50%
techMARK (TASX) 3,441.42 0.21%

FTSE 100 - Risers

Convatec Group (CTEC) 257.00p 5.59%
Croda International (CRDA) 3,583.00p 2.87%
DCC (DCC) 6,960.00p 1.46%
Pearson (PSON) 690.00p 1.17%
Mondi (MNDI) 1,928.00p 1.15%
GKN (GKN) 375.10p 1.13%
AstraZeneca (AZN) 4,725.00p 1.04%
BT Group (BT.A) 331.80p 1.02%
Glencore (GLEN) 341.15p 1.01%
Rio Tinto (RIO) 3,439.50p 0.98%

FTSE 100 - Fallers

Capita (CPI) 507.00p -10.27%
Merlin Entertainments (MERL) 479.50p -3.58%
Dixons Carphone (DC.) 302.10p -2.55%
Schroders (SDR) 3,047.00p -2.53%
ITV (ITV) 207.20p -2.13%
Next (NXT) 3,922.00p -2.02%
Standard Chartered (STAN) 734.10p -1.92%
RSA Insurance Group (RSA) 592.00p -1.91%
Kingfisher (KGF) 326.10p -1.66%
Persimmon (PSN) 2,116.00p -1.58%

FTSE 250 - Risers

Vesuvius (VSVS) 557.00p 19.53%
Cobham (COB) 130.30p 6.63%
Carillion (CLLN) 216.10p 4.60%
Allied Minds (ALM) 405.00p 4.11%
Aldermore Group (ALD) 245.70p 3.67%
Ascential (ASCL) 303.90p 3.02%
Jardine Lloyd Thompson Group (JLT) 1,070.00p 2.69%
BBA Aviation (BBA) 313.50p 2.62%
Spire Healthcare Group (SPI) 337.60p 2.55%
OneSavings Bank (OSB) 386.90p 2.27%

FTSE 250 - Fallers

Travis Perkins (TPK) 1,423.00p -9.07%
Centamin (DI) (CEY) 163.50p -5.65%
SIG (SHI) 107.90p -5.35%
Beazley (BEZ) 419.00p -4.49%
Berkeley Group Holdings (The) (BKG) 2,898.00p -3.69%
Debenhams (DEB) 52.75p -3.65%
Intermediate Capital Group (ICP) 696.50p -2.93%
B&M European Value Retail S.A. (DI) (BME) 301.00p -2.84%
Howden Joinery Group (HWDN) 421.60p -2.83%
Grafton Group Units (GFTU) 618.00p -2.75%