London pre-open: Stocks to edge up ahead of PMIs
London stocks were set to edge up at the open on Thursday as investors eyed the latest readings on the UK manufacturing and services sectors.
The FTSE 100 was called to open 11 points higher at 7,471.
CMC Markets analyst Michael Hewson said: "As we look ahead to this morning’s European open, we look set to see a modest rebound despite a slightly softer theme in Asia, ahead of the latest insight into economic activity in March, and how businesses and consumers are dealing with the challenges being posed by the sharp rise in energy prices seen over the last few weeks, with the latest flash PMI numbers, from France, Germany, the UK and US."
Hewson said we can expect to see a modest slowdown in March with manufacturing expected to slow to 57 from 58, and services from 60.5 to 58, drawing a line under a decent first quarter. “However, this is likely to be as good as it gets this year as economic activity gets squeezed in April,” he added.
In corporate news, Next reduced its profit guidance and predicted selling prices would rise by 8% in the second half of the year as the fashion retailer reported a more than doubling of annual profit.
Pre-tax profit jumped by 140% to £823.1m in the year to the end of January from a year earlier as group sales rose 34% to £4.86bn. Profit rose 10% from two years earlier and sales were up 11.5%.
Next reduced its central annual profit guidance by £10m, or 1.2%, to £850m. The company said UK sales were better than expected but the group cut its forecast for full-price sales by £85m based on the closure of its websites in Russian and Ukraine and reduced forecasts for other overseas markets.
The FTSE 100 company predicted its prices would rise 3.7% in the first half of the current year and by 8% in the second half - up from a 6% forecast in January.
Gambling equipment maker Playtech reported a rise in annual profits as it continued to talk to a group of Asia-based investors about a takeover after the collapse of Aristocrat Leisure’s bid earlier this year.
The company posted adjusted core earnings of €317m, up 25% on a 12% rise in revenue to €1.2bn. Playtech, which has 700 employees in Ukraine, added there was a risk of disruption to operations as the war with Russia continued.
Media company Future said it had acquired digital-only entertainment publisher WhatCulture.com and data insight platform operator Waive for an undisclosed sum.
Future said the acquisition of WhatCulture strengthened its position in the video market, while the addition of Waive would extend its "Aperture" data platform and enhanced data science capabilities.