LONDON (ShareCast) - London’s top stocks are set to drop in early dealings with traders expecting Footsie to open down 30 points.

Persimmon reported a 64% drop in underlying pre-tax profit in the first half to £100.9m and cut its interim dividend to 5.0p from 18.5p, reflecting tough trading conditions and the housebuilder’s cautious outlook. However, the group said it is confident that the business, having been restructured, is in a strong position to move forward whenever the market improves.

Insulation and roofing supplier SIG posted a slight drop in half year profits and warned that trading in some of its markets may become even more challenging. The group said trading since the end of June has been solid but it was “mindful of the likelihood that trading in some of its markets may become still more challenging over the coming months.”

Eurasian Natural Resources reported a 170% jump in underlying earnings in the first half. The ferrochrome producer anticipates a very strong performance in the second half, but said cost pressures, especially in its core divisions, would continue.

Lloyd's insurer Amlin said pre-tax profit of £137.3m was 25.8% below that of the prior half year. Gross premium written was £715.5m, 11.1% less than last year, reflecting the continued effect of average renewal rate reductions of 8.5%.

In the Press, the FT reported that BAE Systems has struck a £2bn partnership deal with the Ministry of Defence to provide munitions and explosives, securing the future of its former Royal Ordnance munitions factories.

Britain’s biggest defence contractor is committed to invest more than £120m over the next five years to accelerate the modernisation of its three main munitions sites, many of which date from before the second world war, according to the paper.

• News Channel