The benchmark FTSE 100 continued to drag its heals in early afternoon trading with little indication that the US open at 2.30pm UK time will enliven investors.
At 12.30pm, the blue-chip index was trading 0.2% lower at 7,151.37, with mid-caps also struggling for momentum. The FTSE 250 drifted 0.1% down at a fraction over the 23,000 mark.
US shares are set to open mostly lower after the long weekend 4th July break with futures suggesting the Dow Jones Industrial Average will open 45 points lower at 34,734 and the S&P 500 virtually flat at 4,352. But the recent tech rally looks likely to continue with the Nasdaq 100 expected to make modest gains to 14,733.
Oil prices spiked as the OPEC+ cartel failed to agree on a deal to increase production. Brent crude futures topped $77 per barrel for the first time since 2018, sending shares in BP (BP.) and Royal Dutch Shell (RDSB) up by 1% apiece.
Inflationary concerns also lifted the gold price back above $1,800 per ounce, while sterling rallied for a fourth day against the US dollar, climbing to $1.3880.
RETAIL NEWS
The UK’s second-largest supermarket group Sainsbury (SBRY) raised its full year forecast for pre-tax earnings after a stronger than expected first quarter, sending its shares up 1% to 280.3p.
Like for like sales for the three months to the end of June rose 1.6% excluding fuel, ahead of estimates, leading management to increase guidance for full year earnings to ‘at least £600 million’ compared with market forecasts of around £500 million.
Online supermarket group Ocado (OCDO) posted a 21% increase in first half revenues to £1.3 billion, driven by strong new customer and order growth in its retail business, and a trebling in EBITDA to £61 million, ahead of analysts’ estimates.
The firm also announced good progress in its smart platform division with seven of its ten existing customers now up and running, including US giant Kroger, and a new contract with Spanish grocer Alcampo to build a customer fulfilment centre to service the Madrid area.
The shares failed to keep hold of earlier gains, drifting 1% lower to £19.665.
AIM ROUND-UP
Healthcare provider Totally (TLY:AIM) reported results for the year to March showing revenues up 7.4% to £113.7 million driven by a jump in demand for urgent care via NHS 111, which the firm said exceeded its expectations and had continued into the second quarter.
It also announced it had won a number of contract extensions in the second quarter worth a total of almost £18 million in revenues. However, lack of forward guidance saw the shares fall 5% to 40.02p.
Online estate agency Purplebricks (PURP:AIM) posted robust results for the year to the end of April, with revenues up 13% to £90.9 million and EBITDA up 314% to £12 million.
The firm is introducing a new pricing model this month, including a money back guarantee, but left its full year guidance of breakeven at the EBITDA level unchanged. Shares dipped 1.4% to 84p in response.
Leak detection firm Water Intelligence (WATR:AIM) announced it had won a significant contract with a US insurer, its fourth new signing this year, making it a ‘preferred contractor’ across America.
The new contract win ‘reinforces the sustainability of a strong organic growth trajectory’ for its US business which is seeing growth of 25% against 20% last year. Shares jumped 6% to 929p.
Concierge platform Ten Lifestyle Group (TENG:AIM) announced it had also won a large new contract worth between £2 million and £5 million with a leading Asia-Pacific credit card issuer, replacing the customer’s in-house concierge and travel services. Shares drifted 1.5% to 102p despite the positive update.
Following the application to list by CMO (CMO:AIM), the online building materials distributor, Lords Group (LORD:AIM) announced it would also list later on this month.
The firm raised £52 million in an over-subscribed placing and will have a market cap of £150 million at flotation.
