London open: Stocks edge up as investors mull earnings
London stocks edged higher in early trade on Wednesday following solid US and Asian sessions, as investors sifted through a raft of corporate news.
At 0840 GMT, the FTSE 100 was up 0.4% at 7,596.25.
Paper and packaging companies were the top performers on the FTSE 100 after corrugated packaging group Smurfit Kappa hiked its dividend by 10% and reported jump in full-year revenue and earnings amid solid demand.
Housebuilder Barratt gained after it reported a slight rise in interim profits and lifted its dividend despite an 11% fall in completions and weaker revenue. Peers Taylor Wimpey, Persimmon and Bellway also rose.
Richard Hunter, head of markets at Interactive Investor, said: "The housing market is showing little signs of cooling and the likes of Barratts are seeing the benefit of previous careful land management.
"Demand has been stronger than perhaps even the company was anticipating, and came despite the watering down of the Help to Buy scheme and the end of the stamp duty holiday. Even so, from a government perspective the drive towards more home ownership remains intact, which helps provide a generally forgiving environment for the housebuilders.
"Some concerns remain, such as cost inflation and ongoing supply chain issues, while from a broader consumer perspective the elevated levels of inflation and the varying demands on the consumer wallet in the coming months could well impact sentiment as well as activity. In addition, the cost of repair to some legacy properties is ongoing, although the costs are containable and slowly reducing."
Imperial Leather maker PZ Cussons surged to the top of the FTSE 250 even as it reported a decline in interim profit and revenue, noting a drop in demand for hygiene products since the height of the pandemic.
GlaxoSmithKline was a little firmer after the pharmaceuticals giant said Covid-related sales hit £1.4bn last year as it reported better-than-expected fourth-quarter earnings.
Dunelm gained as the homeware retailer posted record first-half profit and declared a special dividend as homeware and furniture sales continued to outperform the market, but warned that cost pressures could see some price rises.
Discoverie Group advanced after saying it was on track to deliver full-year underlying earnings for continuing operations ahead of the board’s previous expectations despite ongoing supply chain headwinds.
Market Movers
FTSE 100 (UKX) 7,596.25 0.39%
FTSE 250 (MCX) 22,004.26 1.00%
techMARK (TASX) 4,432.67 1.07%
FTSE 100 - Risers
Mondi (MNDI) 1,927.00p 3.80%
Smith (DS) (SMDS) 377.60p 3.42%
Smurfit Kappa Group (CDI) (SKG) 4,053.00p 2.48%
Admiral Group (ADM) 3,026.00p 2.40%
Aveva Group (AVV) 2,912.00p 2.39%
Barratt Developments (BDEV) 642.20p 2.36%
Compass Group (CPG) 1,799.50p 2.24%
London Stock Exchange Group (LSEG) 7,118.00p 2.04%
Smith & Nephew (SN.) 1,236.00p 1.94%
B&M European Value Retail S.A. (DI) (BME) 559.60p 1.75%
FTSE 100 - Fallers
Standard Chartered (STAN) 561.20p -1.79%
Anglo American (AAL) 3,440.00p -1.42%
Rio Tinto (RIO) 5,540.00p -1.37%
Barclays (BARC) 203.95p -1.09%
NATWEST GROUP PLC ORD 100P (NWG) 246.00p -1.09%
Rightmove (RMV) 634.20p -0.94%
HSBC Holdings (HSBA) 558.30p -0.92%
Lloyds Banking Group (LLOY) 52.07p -0.82%
Aviva (AV.) 441.70p -0.56%
Imperial Brands (IMB) 1,770.00p -0.34%
FTSE 250 - Risers
PZ Cussons (PZC) 201.00p 6.01%
Discoverie Group (DSCV) 890.00p 5.45%
Darktrace (DARK) 392.80p 4.58%
Micro Focus International (MCRO) 423.60p 3.95%
Weir Group (WEIR) 1,713.00p 3.69%
Trustpilot Group (TRST) 168.10p 3.64%
Aston Martin Lagonda Global Holdings (AML) 1,152.00p 3.36%
Dr. Martens (DOCS) 291.00p 3.34%
Baltic Classifieds Group (BCG) 186.00p 2.76%
Trainline (TRN) 235.40p 2.71%
FTSE 250 - Fallers
Contour Global (GLO) 177.80p -2.20%
Ferrexpo (FXPO) 264.40p -1.86%
Auction Technology Group (ATG) 916.00p -1.72%
Hochschild Mining (HOC) 101.70p -1.26%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 790.00p -1.25%
SDCL Energy Efficiency Income Trust (SEIT) 115.00p -0.86%
BlackRock World Mining Trust (BRWM) 675.00p -0.74%
Bridgepoint Group (Reg S) (BPT) 358.50p -0.55%
TBC Bank Group (TBCG) 1,490.00p -0.40%
Chemring Group (CHG) 275.00p -0.36%