London open: Stocks open lower on lack of catalysts

London stocks struggled for direction on Friday with a lack of fresh catalysts to drive markets.

Atif Latif, director of trading at Guardian Stockbrokers, said: “We expect a period of consolidation in the coming sessions before a significant move lower and have seen downward protection being added.

“With the continual drop in the pound that is seeing no respite, the common theme for FTSE companies will now be M&A. Overseas cash rich funds and private equity houses will be looking at potential buyout targets on valuations that are now 20/30% cheaper.”

The FTSE finished higher on Thursday after mostly positive economic data, including better-than-expected UK retail sales and US weekly jobless claims.

Meanwhile, traders were still mulling Wednesday’s release of the Federal Reserve July meeting minutes, which showed policymakers were divided over the timing of the next interest rate hike.

On Friday’s agenda, German producer prices ticked higher in July, according to data from Destatis. The index of producer prices for industrial products was up 0.2% following a 0.4% increase in June and May. Economists had been expecting the index to nudge up 0.1%.

The only other notable release due is UK public finances from the Office for National Statistics at 0930 BST.

The July data is expected to show public sector net borrowing, excluding public sector banks, decreased by £2.3bn, compared to a £2.2bn fall in June to £7.8bn.

It marks the first release on public finances since the UK voted to leave the European Union.

HSBC said: “One area where some indication of the referendum’s effect may come through is in corporation tax returns, which reflected expected earnings, rather than actual results.

“The OBR thinks there may be some deterioration in expected earnings this year, on the back of the vote, but that this could be offset by lower-than-expected investment costs. So, we expect a small increase on last year's surplus.”

On the company front, Hammerson said developments towards achieving a secondary listing on the Johannesburg Stock Exchange (JSE) are at an “advanced stage”

The listing is expected to take place on 1 September after receiving approval from the Financial Surveillance Department of the South African Reserve Bank. Hammerson is now awaiting formal approval from the JSE.

Elsewhere, Faroe Petroleum applied to the LSE for 1,033,949 new ordinary shares of 10p each in respect of the vesting of employee share awards under its corporate incentive plan.

Admission was expected to become effective on 23 August. Faroe held no shares in treasury, the company said in a statement.

Healthy and safety group PHSC has raised £350,000 before expenses through a share placement. The company, which provides health, safety, hygiene and environmental consultancy services, said the placement was in response to investor demand.

The group placed 1,590,909 new ordinary shares of 10p each with new investors at a price of 22p per share. PHSC will use the funds for additional working capital, including for ongoing expenditure relating to recent acquisitions.

Market Movers

FTSE 100 (UKX) 6,857.10 -0.17%
FTSE 250 (MCX) 17,881.81 0.06%
techMARK (TASX) 3,513.51 0.15%

FTSE 100 - Risers

easyJet (EZJ) 1,099.00p 1.95%
Compass Group (CPG) 1,511.00p 0.73%
Centrica (CNA) 235.00p 0.56%
International Consolidated Airlines Group SA (CDI) (IAG) 391.10p 0.51%
Shire Plc (SHP) 5,055.00p 0.50%
AstraZeneca (AZN) 5,069.00p 0.46%
Antofagasta (ANTO) 573.50p 0.44%
BT Group (BT.A) 394.65p 0.32%
BP (BP.) 436.90p 0.31%
Berkeley Group Holdings (The) (BKG) 2,512.00p 0.28%

FTSE 100 - Fallers

Provident Financial (PFG) 2,849.00p -1.25%
Admiral Group (ADM) 2,108.00p -1.08%
Hargreaves Lansdown (HL.) 1,323.00p -0.97%
London Stock Exchange Group (LSE) 2,844.00p -0.91%
Mondi (MNDI) 1,584.00p -0.75%
Royal Bank of Scotland Group (RBS) 186.10p -0.64%
BHP Billiton (BLT) 1,069.00p -0.56%
HSBC Holdings (HSBA) 540.90p -0.53%
St James's Place (STJ) 958.00p -0.47%
Barclays (BARC) 159.95p -0.44%

FTSE 250 - Risers

William Hill (WMH) 317.50p 4.75%
Rank Group (RNK) 226.90p 2.39%
Kaz Minerals (KAZ) 183.90p 2.17%
Moneysupermarket.com Group (MONY) 312.00p 2.16%
Countryside Properties (CSP) 237.70p 2.10%
Countrywide (CWD) 245.00p 1.70%
Assura (AGR) 58.30p 1.57%
Softcat (SCT) 338.90p 1.53%
Virgin Money Holdings (UK) (VM.) 289.70p 1.47%
Rotork (ROR) 208.40p 1.46%

FTSE 250 - Fallers

Redefine International (RDI) 43.39p -2.49%
OneSavings Bank (OSB) 221.10p -2.43%
Shawbrook Group (SHAW) 186.40p -2.00%
Brewin Dolphin Holdings (BRW) 265.90p -1.81%
Pets at Home Group (PETS) 246.70p -1.67%
Ocado Group (OCDO) 281.00p -1.06%
Tullett Prebon (TLPR) 362.90p -1.01%
Aggreko (AGK) 1,035.00p -0.96%
Sports Direct International (SPD) 295.50p -0.84%
Vesuvius (VSVS) 374.40p -0.82%