London open: Stocks flat as investors pause for breath; construction PMI eyed
London stocks were little changed in early trade on Thursday as investors paused for breath after the blue-chip index hit new highs in the previous session.
At 0825 GMT, the FTSE 100 was flat at 7,380.40. On Wednesday, the index hit a fresh intraday record high of 7,383.05 and closed at a record high of 7,382.9.
Meanwhile, on Wall Street, the Dow Jones rose more than 300 points to close at a new record high of 21,115.
Spreadex’s Connor Campbell said: “After the triumphant return of the Trump rally on Wednesday things have dramatically quietened down this morning, investors exhausted from yesterday’s record-breaking run.”
In corporate news, Schroders edged higher after it reported a 27% increase in its full-year assets under management to £397.1bn, which drove a 6% rise in profit before tax and exceptionals to £644.7m.
Cobham gained ground as it announced a £500m rights issue after it sank to a huge £848m loss last year.
Outsourcing firm Capita, booted from the FTSE 100 index on Wednesday, ticked up after it reported a 33% slump in profits to £74.8m as its chief executive Andy Parker announced his resignation following a string of earnings warnings.
Medical technologies company ConvaTec was a high riser after it said 2016 adjusted revenue grew 2.3% to $1.69bn, or 4% at constant exchange rates.
Challenger bank Aldermore was also on the front foot as it posted a 34% jump in full-year profit.
Insurer Hastings Group advanced as it reported a 5% rise in full-year operating profit as gross written premiums grew.
Budget Eastern Europe-focused airline Wizz Air pushed higher as it said passenger numbers rose 21.8% in February.
Spire Healthcare racked up healthy gains after reporting an increase in full-year profit after tax and revenue.
On the downside, Legoland and Madame Tussauds owner Merlin Entertainments dropped despite posting a rise in revenue and visitors for 2016 following a recovery in its resort theme parks.
Building materials supplier Travis Perkins slumped after it said pre-tax profit for the year dropped 67% on the back of exceptional charges.
Informa shares fell after it agreed to buy Yachting Promotions Inc, the operator of some of the largest yachting and boat shows in the US, for £106m, from Active Interest Media.
RSA Insurance was the worst performer as its stock went ex-dividend.
Debenhams slumped after a downgrade by Berenberg, but RBS was lifted by an upgrade from the same outfit.
Meanwhile, British Airways and Iberia parent International Consolidated Airlines Group flew lower after being cut to ‘reduce’ by HSBC.
On the data front, the UK construction PMI is at 0930 GMT.
CMC Markets’ Michael Hewson said: “Today’s construction PMI numbers for February are expected to stay unchanged from the sharp drop to 52.2 seen in January. Of all the sectors since the Brexit vote construction has underperformed relative to manufacturing and services despite all the talk of the need to build more houses.”
Market Movers
FTSE 100 (UKX) 7,380.40 -0.03%
FTSE 250 (MCX) 18,990.22 0.04%
techMARK (TASX) 3,440.19 0.18%
FTSE 100 - Risers
Convatec Group (CTEC) 253.50p 4.15%
Royal Bank of Scotland Group (RBS) 249.00p 2.09%
Smurfit Kappa Group (SKG) 2,219.00p 1.51%
Hikma Pharmaceuticals (HIK) 2,196.00p 1.10%
GKN (GKN) 374.70p 1.02%
Rio Tinto (RIO) 3,440.50p 1.01%
easyJet (EZJ) 965.50p 0.78%
HSBC Holdings (HSBA) 667.50p 0.77%
Capita (CPI) 569.00p 0.71%
BHP Billiton (BLT) 1,362.00p 0.63%
FTSE 100 - Fallers
RSA Insurance Group (RSA) 592.00p -1.91%
ITV (ITV) 209.30p -1.13%
Sainsbury (J) (SBRY) 265.60p -1.04%
Kingfisher (KGF) 328.70p -0.87%
Associated British Foods (ABF) 2,599.00p -0.73%
Rolls-Royce Holdings (RR.) 777.00p -0.70%
Tesco (TSCO) 188.90p -0.66%
Direct Line Insurance Group (DLG) 347.60p -0.60%
Dixons Carphone (DC.) 308.20p -0.58%
Severn Trent (SVT) 2,316.00p -0.56%
FTSE 250 - Risers
Aldermore Group (ALD) 252.00p 6.33%
Aberdeen Asset Management (ADN) 288.40p 2.52%
Hastings Group Holdings (HSTG) 238.20p 2.41%
Meggitt (MGGT) 469.60p 2.18%
Cairn Energy (CNE) 223.50p 2.15%
Ibstock (IBST) 204.50p 2.15%
Clarkson (CKN) 2,578.00p 2.10%
Diploma (DPLM) 1,103.00p 1.85%
CYBG (CYBG) 268.30p 1.59%
Sophos Group (SOPH) 283.10p 1.54%
FTSE 250 - Fallers
Travis Perkins (TPK) 1,482.00p -5.30%
Hunting (HTG) 500.50p -4.67%
Centamin (DI) (CEY) 166.00p -4.21%
Hill & Smith Holdings (HILS) 1,111.00p -3.31%
Debenhams (DEB) 53.10p -3.01%
Berkeley Group Holdings (The) (BKG) 2,954.00p -1.83%
Domino's Pizza Group (DOM) 380.60p -1.78%
SIG (SHI) 112.00p -1.75%
Man Group (EMG) 141.20p -1.60%
ZPG Plc (ZPG) 384.00p -1.46%