Major UK shares closed higher on Monday, led by oil and banking stocks, as investors continued to bet on rising interest rates globally, while stronger commodity prices lifted mining shares.
The benchmark FTSE 100 ended the day nearly 0.8% higher at 7,573.47, with global miners Anglo American (AAL) and Rio Tinto (RIO) providing a strong boost to the blue-chip index, despite Russian steel play Evraz (EVR) leading the FTSE loser board with a 7% fall to 455p on worries over slowing growth in China.
HSBC (HSBA), Barclays (BARC) and the Lloyds (LLOY) closed higher, extending last week’s winning run.
Oil eased off recent highs with Brent crude down 0.66% at $92.65 a barrel. The pound bobbed and weaved against major currencies, largely flat versus the dollar at $1.3530.
Despite the positive start to the week there are plenty of reasons for investors to be cautious. Last week’s strong US jobs data might suggest the Fed pushes up rates faster and harder than currently expected, while ongoing tensions between Ukraine and Moscow also hang over markets.
US markets go off to firm start too, but volatility soon emerged with gains fading away as the Wall Street trading session progressed. By the UK finish, the S&P 500 was down around 0.2%, while the Dow Jones and Nasdaq Composite lost 0.1% and 0.3% respectively.
NEW BROOMS SWEEP IN
In corporate news, housebuilder Taylor Wimpey (TW.) added 0.5% at 150.1p following latest Halifax house price data and the appointment of Jennie Daly as its new chief executive. Currently operations director at the FTSE 100 homebuilder, she replaces long-serving CEO Pete Redfern from 26 April.
Irene Dorner, chairman, insisted new broom Daly brings ‘extensive experience in the housebuilding sector and has demonstrated exceptional leadership and a razor-sharp operational focus. Her strong focus on execution, combined with her customer and people-focused skills, set her apart from the other candidates we were considering.’
In the FTSE 250, Pets at Home (PETS) added 0.5% to 408p as the pet products retailer revealed it has appointed Lyssa McGowan as its incoming CEO.
McGowan, the outgoing chief consumer officer for media group Sky UK, takes over in the hot seat from Peter Pritchard on 1 June 2022 and said she is excited ‘to lead Pets at Home on its journey to being the best pet care business in the world’.
Bid rumours that boosted e-commerce group THG (THG) early on faded away by the end of the day, with the stock bouncing off 5% declines to end 1.3% lower at 133.6p.
The troubled online cosmetics-to-health products seller has a powerful founder in the form of Matt Moulding and some believe he may resist private equity predators and potentially even take the business private as he has reportedly threatened to do.
Leak detection group Water Intelligence (WATR:AIM) surged 3.4% to 910p as the company upgraded its annual profit guidance amid ‘rapid’ growth in demand for its solutions, fed by ‘the increasing price of water and strong government infrastructure spending around the world’, notably in the US.
Water Intelligence said sales and profits exceeded expectations in the year to December 2021, the former up 44% year-to-year to $54.5 million and the latter growing 36% to $6.9 million.
AROUND THE MARKET
Elsewhere, self-storage group Lok’nStore (LOK:AIM) rose 0.7% to £10.10 on the news its self-storage revenue was up 34% in the first half to January 2022, driven by improvements in both occupancy and pricing.
‘This is a busy and exciting time for Lok’nStore,’ said executive chairman Andrew Jacobs. ‘Our pipeline of new stores, increasing lettable space by 49.2%, will enable Lok’nStore to increase the rate of dividend growth for shareholders going forward.’
Fryer management services group Filta (FLTA:AIM) rallied 6.1% to 139p on reporting that revenue recovered strongly in 2021 and is now ahead of pre-pandemic levels, led by a ‘strong and early’ recovery in North America.
Record-setting third and fourth quarters helped the group to finish the year with revenues of £23.6 million, up from £16.4 million in 2020.
Energy efficiency investor SDCL Energy Efficiency Income Trust (SEIT) ticked up 0.9% to 115.5p after agreeing to acquire 80% of a biomass cogeneration plant in Portugal from Capwatt for about €22 million.
SDCL Energy Efficiency also announced that it had acquired the interest of a minority shareholder of the Puente Genil projects in Oliva Spanish Cogeneration for €12 million.
Television content producer Zinc Media (ZIN:AIM) firmed 2.4% to 84p on news it expects to post forecast-beating earnings in the second half and that the new year has started positively.
Adjusted earnings before interest, tax, depreciation and amortisation for the six months to December 2021 is expected to be in the region of £500,000, ahead of management’s forecasts.
Concierge platform Ten Lifestyle (TENG:AIM) ticked 0.9% higher to 119p after the company said it had won a competitive tender with an existing global financial services client to continue providing services to its customers in the EMEA region.
The client’s renewed commitment is expected to grow the existing ‘medium’ contract, with the potential to become a ‘large’ contract during the multi-year term of the renewal, explained the company.
Retail, promotional and brand experience play SpaceandPeople (SAL:AIM) rallied 46% to 13.56p after the company said it expects to post higher annual revenue as demand recovers following an easing of lockdowns. Revenue for the year to December 2021 rose to £4.5 million, up from £2.8 million year-on-year.
‘Trading has continued to recover in early 2022 in both the UK and Germany and the board is increasingly confident on the outlook for the business and has the resources and opportunities to deliver sustained and improved financial performance’, insisted SpaceandPeople.
