Michele Maatouk Sharecast News
28 Jun, 2024 07:38 28 Jun, 2024 07:38

London pre-open: Stocks to rise as economy grows faster than expected

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London stocks were set to rise at the open on Friday as investors mulled better-than-expected UK GDP data.

The FTSE 100 was called to open around 24 points higher.

Data released earlier by the Office for National Statistics showed that the economy grew faster than first thought in the first three months of the year.

Gross domestic product grew by 0.7% in the first quarter, up from an initial estimate of 0.6% growth.

The figures showed that the services sector expanded by 0.8%, up from the initial estimate of 0.7% growth. Meanwhile, production was up 0.6% in the first quarter, down from 0.8% initially estimated.

The construction sector contracted 0.6%.

Paul Dales, chief UK economist at Capital Economics, said the upward revision to Q1 GDP "suggests whoever is Prime Minister this time next week may benefit from the economic recovery being a bit stronger than our already above-consensus forecast".

Looking ahead to the rest of the day, investors will be eyeing US personal consumption expenditure for May at 1330 BST.

In corporate news, Quanex Building Products announced an increased and final recommended cash and share offer for Tyman.

It said that after feedback from Tyman shareholders, the revised proposal included a special interim dividend of 15p per share in addition to the previous consideration of 240p and 0.05715 of a new Quanex share per Tyman share.

The Tyman board has unanimously recommended the revised offer, and secured an irrevocable undertaking from Alantra EQMC Asset Management to support the scheme, representing 10.05% of its issued share capital.

Scientific instruments group Judges Scientific has spent £2.25m on the purchase of Wales-based Rockwash Geodata, a specialist in rock cuttings and chippings digitalisation.

The company said Rockwash is a market leader in its niche and has a business that is “strongly synergistic” with the core digitalisation activities of its subsidiary Geotek.

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