London pre-open: Stocks to edge higher ahead of retail sales
London stocks were set to edge higher at the open on Thursday following losses in the previous session, as investors eyed the release of the latest UK retail sales figures.
The FTSE 100 was expected to open eight points higher at 7,380.
CMC Markets analyst Michael Hewson said: “Today’s retail sales for October could well show further weakness after September’s disappointing performance of -0.8%. Expectations are for a figure of 0.1%, though even this might be optimistic with consumers preferring to keep their powder dry ahead of the potential bargains in November Black Friday numbers, or ahead of the pre-Christmas sales in December.
“Bank of England governor Mark Carney will also be speaking, along with a number of his colleagues later today at various public events in the north of England later today.”
UK retail sales are at 0930 GMT.
In corporate news, underlying profits at Royal Mail improved in the first half of the year, though the costs of transforming the business saw reported operating profits plummet more than 80%.
UK parcel volumes increased 6% and letter volumes declined 5% to leave the UKPIL business with flat revenues for the half-year, while the overseas focused GLS business grew volumes and revenues 9%.GKN has parted company with Kevin Cummings, who was due to step up to be chief executive at the aircraft and vehicle parts maker.
Cummings, who heads GKN's aerospace business, was due to take over from Nigel Stein, the current chief executive, when he retires at the end of December. But GKN said Cummings had left the company and that Anne Stevens, a non-executive director, would do the job until a replacement for Stein is found.
Mediclinic revenue grew 10% in the six months to 30 September, it announced in its interim results on Thursday, to £141bn.
The company said underlying EBITDA was ahead 5% to £232m in the six months period to 30 September, although it dropped 5% at constant currencies. Its underlying operating profit was up 3% to £161m, while its reported operating profit fell 21% to £133m, which was impacted by exceptional items.
Private equity and venture capital firm 3i Group reported “continued progression” in its net asset value per share for its first half, rising to 652p from 604p at the start of the period, after payment of the 18.5p FY2017 final dividend, and a total return of £655m or 11% of opening shareholders' funds.
The group said its private equity business performed “well” in the six month period to 30 September, with strong performances from Action, Scandlines, ATESTEO, Audley Travel, Basic-Fit, Q Holding and Aspen Pumps contributing to a gross investment return of £715m.