UK markets managed to nudge modestly into positive territory at midday, but there remains plenty for investors to mull over.
US and European indices jumped on Monday in response to hopes that a vaccine might be developed soon, but came off again overnight. Major US markets to snap a three-day winning streak to decline overnight, led by the Dow's 1.6% fall. The S&P 500 and tech-heavy Nasdaq lost 1% and 0.5% respectively.
the UK's benchmark FTSE 100 had edged roughly 0.2% higher and managing to so far, keep its head above 6,000 at 6,013.16.
Global data firm Experian (EXPN) was the best large-cap performer, up 7.5% to £27.11 after posting strong full year results and a confident outlook despite the impact of the pandemic.
Group revenues were up 8% to $5.18bn on a like for like basis in the year to 31 March, while operating profits grew 9% to $1.39bn helped by strong demand for its services in the final quarter.
The firm expects first quarter revenues to decline between 5% and 10%, but remains confident of its ability to bounce back ‘once the crisis abates’, and has therefore held its second interim dividend.
Pharmaceutical firms also provided support, with Hikma (HIK) gaining 1.3% to £24.98 and Glaxosmithkline (GSK) adding 1% to £16.77.
MID-CAP GAINERS
Among mid-cap stocks, games software firm Frontier Developments (FDEV) shone, rising 10.6% to £18.30 after it raised its forecasts for full year revenues and operating profits thanks to strong demand for its games.
Revenues and profits are expected to be ‘materially ahead of the top of previous guidance’ as several of its games crossed sales milestones, the most notable being Planet Zoo which racked up sales of over 1m units less than six months after launch.
High street retailer Marks & Spencer (MKS) was another mid-cap gainer, up 3.9% to 89.2p after it revealed that sales were down just 1.9% in the year to 28 March and cash flow was well ahead of its Covid scenario in the first six weeks of the new financial year.
The firm has taken over £1bn of actions to manage its cash under its scenario planning, including £500m of cost reductions, with the result that cash flow is so far £150m ahead of budget.
Close behind Marks was gambling technology company Playtech (PTEC), up 3.5% to 239p as it reported better than expected operating profits for the first four months of the year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew to €140m in the period, helped by new brands and the addition of TradeTech as well as cash preservation measures.
Housebuilder Vistry (VTY) gave up 2.3% to 742p despite a strong start to the year with over 70% of sites operating normally and an increase in the average sales rate accompanies by improved pricing.
Over the past eight weeks the firm has exchanged on 310 homes, completed on 257 sales and taken in 300 reservations net of cancellations, putting it ahead of where it expected to be at this stage.
Aerospace firm Rolls-Royce (RR.) was another loser, falling close to a new year-low down 3.8% to 257p after it revealed plans for a major restructuring involving the lay-off of at least 9,000 personnel 'as soon as possible.'
The plan involves slashing civil aerospace engine production, which represents around half of group revenues, as airline customers and aircraft makers reduce orders due to the impact of the pandemic on global air travel.
Chief executive Warren East said it was ‘increasingly clear that activity in the commercial aerospace market will take several years to return to the levels seen just a few months ago. We must now address these medium-term structural changes, as demand from customers reduces significantly for our civil aerospace engines and aftermarket services.’
FOR A LIST OF FTSE GAINERS AND LOSERS SEE HERE
