London open: Stocks edge higher ahead of inflation data; Vodafone rallies

Michele Maatouk WebFG News | 14 Nov, 2017 08:53 - Updated: 08:53 | | |

London Stock Exchange AIM LSE shares

London stocks edged higher in early trade on Tuesday as investors eyed key inflation data and sifted through a slew of corporate releases.

At 0830 GMT, the FTSE 100 was up 0.2% to 7,430.69, while the pound was flat against the dollar at 1.3112 and down 0.3% versus the euro at 1.1210 ahead of the release of the consumer price index, retail price index and producer price index at 0930 GMT.

The consensus forecast is for the key CPI reading to come in at 3.1% year-on-year for October, up from the 3.0% seen in September.

Spreadex analyst Connor Campbell said: “After Monday’s empty economic calendar left the pound to soak in Theresa May’s trademark political uncertainty, today provides a different challenge for the currency in the form of the latest inflation reading.

He added: "It is going to be fascinating to watch how the pound greets such a number. For the past few months the rapid rise in inflation has reached the market through a Bank of England rate hike-focused filter. However, now that the MPC have raised rates, and aren’t likely to do so again any time soon, sterling has lost its road map for reacting to the figure. There’s every chance, then, that these 3.0%-plus readings won’t be taken as a positive by the pound, but rather as a drain on the UK’s consumers.”

In corporate news, Vodafone rallied after it lifted its full-year earnings growth guidance to around 10% from 4-8%, while Tesco advanced after its takeover of wholesaler Booker was given provisional clearance by the UK competition authority following an in-depth review.

Broadcaster ITV was on the front foot as it reported an easing in the television advertising crunch in the third quarter and further good growth in online and overseas sales of its Studios productions.

Housebuilders were boosted by a well-received update from Bovis Homes, which said it’s on track to meet its expectations for the full year 2017 and to deliver “significant improvements” in profits for FY18 amid robust demand.

Intermediate Capital Group advanced as it posted a 14% jump in first-half assets, while Computacenter gained after saying results for 2017 will now be “comfortably in excess” of its previous expectations.

Land Securities edged higher as it reported a solid first half despite Brexit headwinds, while Royal Mail was boosted by an upgrade to ‘outperform’ at Bernstein.

Polypipe was in the black as said revenue for the ten months ended 31 October was up 8.2% on the prior, while BBA Aviation was higher after a well-received trading statement.

Retirement housebuilder McCarthy & Stone was also firmer after it posted a drop in full-year profit amid increased build and incentive costs, but a rise in revenue that beat analysts’ expectations.

Diversified engineer Smiths Group was in the red as it reported a drop in revenue for the first quarter mostly due to order timing, while Hikma Pharmaceuticals declined after announcing the acquisition of six products from Boehringer Ingelheim GmbH.

Market Movers

FTSE 100 (UKX) 7,430.69 0.21%
FTSE 250 (MCX) 19,847.22 0.30%
techMARK (TASX) 3,418.92 0.71%

FTSE 100 - Risers

Vodafone Group (VOD) 224.45p 3.91%
Tesco (TSCO) 182.65p 3.19%
Barratt Developments (BDEV) 631.50p 2.18%
ITV (ITV) 157.00p 1.95%
Persimmon (PSN) 2,705.00p 1.81%
Berkeley Group Holdings (The) (BKG) 3,660.00p 1.75%
Taylor Wimpey (TW.) 195.20p 1.24%
Sainsbury (J) (SBRY) 229.90p 1.14%
Shire Plc (SHP) 3,538.00p 1.11%
Carnival (CCL) 5,000.00p 1.07%

FTSE 100 - Fallers

Convatec Group (CTEC) 188.50p -1.46%
Smiths Group (SMIN) 1,490.00p -1.13%
Rio Tinto (RIO) 3,660.50p -1.04%
Next (NXT) 4,280.00p -1.02%
BHP Billiton (BLT) 1,411.00p -0.84%
Glencore (GLEN) 361.40p -0.70%
Babcock International Group (BAB) 748.00p -0.66%
Fresnillo (FRES) 1,286.00p -0.62%
Anglo American (AAL) 1,490.00p -0.47%
Randgold Resources Ltd. (RRS) 6,905.00p -0.43%

FTSE 250 - Risers

Intermediate Capital Group (ICP) 994.00p 6.94%
Computacenter (CCC) 1,049.00p 6.17%
Booker Group (BOK) 206.00p 3.73%
Polypipe Group (PLP) 388.90p 3.10%
McCarthy & Stone (MCS) 151.20p 2.72%
Royal Mail (RMG) 383.30p 2.57%
Brown (N.) Group (BWNG) 287.90p 2.16%
Vesuvius (VSVS) 580.50p 2.02%
BBA Aviation (BBA) 321.00p 1.65%
Bovis Homes Group (BVS) 1,123.00p 1.63%

FTSE 250 - Fallers

Hikma Pharmaceuticals (HIK) 914.50p -4.79%
Provident Financial (PFG) 815.50p -4.23%
Ultra Electronics Holdings (ULE) 1,181.00p -3.98%
Tate & Lyle (TATE) 685.50p -3.45%
Intu Properties (INTU) 196.30p -3.35%
Acacia Mining (ACA) 174.30p -3.06%
TBC Bank Group (TBCG) 1,671.00p -1.71%
Dixons Carphone (DC.) 147.10p -1.61%
Hochschild Mining (HOC) 234.00p -1.60%
Virgin Money Holdings (UK) (VM.) 282.30p -1.57%

More news

17 Nov Europe close: Stocks slip going into the weekend

Stocks reversed early gains as investors opted to play it safe going into the weekend and the euro edged a tad higher on the back of the political gyrations on Capitol Hill.

17 Nov Europe open: Stocks start slightly higher, analysts wary

Stocks have started the morning trading slightly higher, tracking overnight gains on Wall Street but analysts are worried about buying into Thursday's bounce.

17 Nov London close: Stocks finish week on down note

London's top flight index slipped on Friday, but managed to finish well-off its lows of the session despite renewed Brexit angst as the pound gave back early gains.

17 Nov Kingfisher gets RBC upgrade as 'reasons to be cheerful' in France

DIY retailer Kingfisher has more "reasons to be cheerful" thanks to an improving French outlook, analysts at RBC Capital Markets said on Friday, while clothes seller Supergroup remains "compelling" but its shares have gained a lot in recent weeks.

17 Nov NAV on the rise as Alpha Real Estate Trust turns focus to build-to-rent market

Real estate investment group Alpha Real Trust saw its net asset value (NAV) rise in its first half of trading as it moved to make further investments in build-to-rent projects.

17 Nov Pacific Industrial & Logistics completes sale of Bedford asset

Industrial and logistics-focussed real estate investment trust Pacific Industrial & Logistics has completed the sale of an asset located at Hammond Road, Bedford, for a total consideration of £5.8m, it announced on Friday.

17 Nov DP Poland cuts ribbon on 50th Polish Domino's store

DP Poland, which holds the exclusive master franchise for the Domino’s Pizza brand in Poland, celebrated the opening of its 50th location in the country on Friday.

17 Nov Mercia Technologies makes new investment into Aston EyeTech

National investment group Mercia Technologies has made a new direct investment into Aston EyeTech - a spinout from Aston University, Birmingham - which has developed a range of proprietary hardware and software products in ocular care, it announced on Friday.

17 Nov SimiGon receives final approval for $2m Israeli Air Force order

Modelling, simulation and training solutions provider SimiGon has now received final regulatory approval for a $2m purchase order received from the Israeli Air Force, initially announced on 20 June 2016, it confirmed on Friday.

17 Nov Agriterra losses grow after 'subdued' interest in corn products

Agricultural investment group Agriterra saw losses widen in the first half of its trading year as subdued demand for its maize flour products slashed revenues by more than a third.