The FTSE 100 index encountered continued selling pressure during Wednesday’s afternoon session closing 0.63% lower at 7104.50. The FTSE 250 index also ended the day down by 0.93% at 23,873.25.
This was partly in response to comments from James Bullard, president of the Federal Reserve Bank of St Louis who suggested the Fed would start tapering before the end of this year. All the major US equity indices were trading lower in response to Bullard’s remarks.
At the London market close the S&P 500 Index was trading 0.32% lower at 4,505.73, the Dow Jones Industrial Average was 0.17% lower at 35,039.38, and the Nasdaq Composite Index was 0.82% lower at 15,248.70.
MOVERS
Homeware retailer Dunelm (DNLM) was the star performer amongst the FTSE250 Index. Shares rose 12.5% to 1447p after the company announced a 45% rise in annual profit, declared a special dividend and upgraded its guidance as demand held up throughout the pandemic. Pre-tax profit for the year through 26 June increased to £157.8 million, up from £109.1 million year-on-year, as sales climbed 26% to £1.34 billion.
Value retailer B&M (BME) also bucked the negative market trend by exciting investors with a bullish trading update. It said first-half results would beat analyst forecasts, sending its shares up 6.8% to 577.2p. The retailer ended the day as the top FTSE 100 performer.
FTSE 100 mining group Anglo American (AAL) said the value of its diamond sales at De Beers remained broadly steady in the seventh sales cycle of 2021. Rough diamond sales amounted to $515 million, based on provisional numbers. The miner’s shares dipped 1.1% to £30.59.
OTHER NEWS
Engineering group Smiths (SMIN) received a $2.4 billion offer for its medical business from ICU Medical, with the bidder having trumped a rival $2 billion offer from TA Associates. The shares advanced 2.8% to £14.63.
Waste management group Biffa (BIFF) said its revenue had risen 12% year-on-year in the first five months of its financial year, though it noted it was facing a shortage of drivers. Revenue for the five months through August was up 3% excluding acquisitions, it added. The shares fell 5.4% to 382p.
Rubber products supplier Avon Protection (AVON) said it had won a contract worth up to $87.6 million over two years to develop and supply the US Army with integrated head protection system. The contract replaced the next-generation IHPS contract announced on 24 September 2020, which was withdrawn following a competitor protest. Avon’s shares ticked up 1% to £17.93.
Concrete-levelling group Somero Enterprises (SOM:AIM) posted a large rise in first-half profit and upgraded its annual guidance, citing a ‘very strong and highly active’ US market. Pre-tax profit for the six months through June increased to $23.5 million, up from $7.5 million year-on-year, as revenue jumped 82% to $64.4 million. Somero advanced 15.5% to 543p.
