The FTSE 100 index opened Thursday’s trading session on a slightly firmer note, trading up by 0.07% at 7154.8, but lacking any real momentum or direction.
This partly reflected the mixed performance of American equity markets. The S&P 500 index ended the session marginally higher at 4524.09, with the NASDAQ Composite also closing 0.33% firmer at 15,309.38.
The Dow Jones Industrial index ended the trading session 0.14% lower at 35,312.53. American markets were disappointed by the latest ADP payroll report which revealed only 374,000 jobs had been added.
This compared with a consensus estimate of 640,000. Moreover, this negative market sentiment was compounded by an ISM manufacturing component which indicated a contraction in the employment component from 52.9 in July to 49.
CORPORATE NEWS
Shares in engineering group Melrose (MRO) were 3.8% firmer at 178.8p in early trading after the company said it was trading ahead of expectations.
Adjusted pre-tax profit was £119 million compared with an £11 million loss a year earlier and Melrose declared an interim dividend of 0.75p a share. The group has been a key beneficiary of a recovery in the aerospace division as well as its cost reduction programme.
Housebuilder Barratt Developments (BDEV) announced a 65.1% increase in pre-tax profits to £812.2 million for the year to June 30. However, the shares were marked 2.26% lower to 726p in early trading as the market focused on the rising costs and weakening demand which were highlighted by management.
Online broker CMC Markets (CMCX) was a victim of reduced market volatility. Shares in the group were marked down by 26% to 310p in early trading after the company reduced its profit guidance.
CMC now expects full year 2022 operating income of between £250 million and £280 million compared to previous guidance of over £330 million.
IN OTHER NEWS
Shares in sportswear chain JD Sports (JD) traded 0.3% lower early on following news that the regulator believes that its proposed merger with Footasylum would not be in the interests of the consumer.
JD Sports acquired Footasylum in March 2019 for £90 million, but the deal has been in a regulatory quagmire following the Competition and Markets Authority’s CMA repeated attempts to block the merger.
Elsewhere, shares in real estate investment trust Londonmetric (LMP) were trading 2.2% lower at 259.2p following the acquisition of an urban logisitics warehouse in Cardiff for £11.1 million.
Oil and gas company Energean (ENOG) reported its first set of results highlighting that it was outperforming guidance. Shares responded positively in early trading and were 2.3% firmer at 696.5p.
Gulf Keystone Petroleum (GKP) rose 8.9% to 169.1p after the company revealed the extent to which it is a beneficiary of higher oil prices, announcing a more than tripling of EBITDA for the six months ended 30 June, compared to that reported in the first half of 2020.
