London midday: Stocks maintain small gains as Truss unveils energy package
London stocks were still a little firmer by midday Thursday as new prime minister Liz Truss announced details of an energy bill support package.
The FTSE 100 was up 0.2% at 7,250.84, while sterling was 0.1% firmer versus the dollar at 1.1545.
Truss confirmed a new Energy Price Guarantee that will mean that from October, a typical household will pay no more than £2,500 a year for the next two years. This replaces energy regulator Ofgem’s price cap and is on top of the £400 support already announced.
No details were given about the cost of the scheme. These will be outlined by chancellor Kwasi Kwarteng later in the month.
Truss also announced "equivalent" help for businesses, charities and public sector bodies for the next six months. After six months, further support will be given to the hospitality industry.
In equity markets, animal genetics company Genus and hydrocarbon exploration and production group Energean were high risers after well-received results.
On the downside, Darktrace tanked after tech investment firm Thoma Bravo said it will not be making an offer for the cybersecurity group. Darktrace said in a statement that the two parties had been unable to reach an agreement on the terms of an offer.
AJ bell tumbled after Jefferies downgraded the shares to ‘underperform’ from ‘hold’, citing a "darkening near-term outlook and a relatively high multiple".
Elsewhere, Primark owner Associated British Foods slid as it warned that adjusted operating profit and earnings per share for the next financial year will be lower than this financial year.
Turnaround specialist Melrose Industries reversed earlier gains to trade lower after announcing plans demerge its GKN Automotive and GKN Powder Metallurgy businesses and list the new holding company.
Market Movers
FTSE 100 (UKX) 7,254.13 0.23%
FTSE 250 (MCX) 18,805.11 -0.03%
techMARK (TASX) 4,270.78 0.58%
FTSE 100 - Risers
Pershing Square Holdings Ltd NPV (PSH) 2,825.00p 2.36%
Antofagasta (ANTO) 1,130.50p 2.31%
Standard Chartered (STAN) 585.40p 1.49%
Ocado Group (OCDO) 744.60p 1.47%
Rio Tinto (RIO) 4,699.00p 1.45%
Sage Group (SGE) 731.60p 1.30%
Fresnillo (FRES) 709.80p 1.26%
BP (BP.) 446.60p 1.21%
Airtel Africa (AAF) 135.70p 1.19%
JD Sports Fashion (JD.) 125.30p 1.09%
FTSE 100 - Fallers
Associated British Foods (ABF) 1,336.50p -8.14%
B&M European Value Retail S.A. (DI) (BME) 346.90p -4.25%
Melrose Industries (MRO) 131.80p -4.25%
Next (NXT) 5,824.00p -3.70%
3i Group (III) 1,154.50p -2.08%
Tesco (TSCO) 244.70p -1.85%
Hikma Pharmaceuticals (HIK) 1,258.50p -1.83%
Abrdn (ABDN) 150.85p -1.82%
Auto Trader Group (AUTO) 633.80p -1.61%
Sainsbury (J) (SBRY) 203.70p -1.59%
FTSE 250 - Risers
Genus (GNS) 2,738.00p 14.18%
Energean (ENOG) 1,390.00p 11.65%
Chrysalis Investments Limited NPV (CHRY) 72.20p 3.44%
Bellevue Healthcare Trust (Red) (BBH) 171.20p 3.13%
JPMorgan Japanese Inv Trust (JFJ) 462.50p 2.89%
Bridgepoint Group (Reg S) (BPT) 306.40p 2.47%
SSP Group (SSPG) 213.30p 2.25%
Ashmore Group (ASHM) 219.20p 2.05%
Hochschild Mining (HOC) 60.80p 2.01%
Apax Global Alpha Limited (APAX) 165.60p 1.97%
FTSE 250 - Fallers
Darktrace (DARK) 351.50p -31.72%
AJ Bell (AJB) 251.80p -10.07%
Baltic Classifieds Group (BCG) 132.20p -4.20%
ASOS (ASC) 669.50p -4.15%
Marks & Spencer Group (MKS) 117.05p -4.06%
ITV (ITV) 62.56p -2.71%
CMC Markets (CMCX) 221.50p -2.42%
FDM Group (Holdings) (FDM) 720.00p -2.17%
National Express Group (NEX) 167.30p -2.05%
Softcat (SCT) 1,248.00p -1.89%