UK stocks started Friday’s trading session on a firmer note, reversing a three-day losing streak, following the release of better than expected retail sales figures for October.
According to the Office for National Statistics, retail sales rose 0.8% last month, ahead of the 0.5% forecast and taking them around 6% above pre-pandemic levels.
The strength was partly attributed to consumers starting their Christmas shopping early, with non-food sales rising by 4.2% as shoppers bought toys, clothes and sports equipment.
The FTSE100 opened 0.26% higher at 7,275, while the mid-cap FTSE 250 Index opened 0.05% firmer at 25,586.
MARKET NEWS
Shares in multinational consumer goods company Unilever (ULVR) fell 0.5% to 3802p, after saying it agreed to sell its global tea business to CVC Capital Partners for €4.5 billion or roughly £3.8 billion.
The sale, which includes household brands Lipton's and PG Tips, is part of Unilever's strategy to improve shareholder returns by focusing on higher-growth and higher-margin businesses.
Shares in home improvement retailer Kingfisher (KGF) fell 5% to 320p despite the firm upgrading its outlook following strong sales in the third quarter.
The company said it had also made a 'good' start to the fourth quarter, with like for like sales to 13 November up 0.4% on last year and 13.2% on a two-year basis.
Full year adjusted pre-tax profit was expected to be towards the top end of the guided range of £910 million to £950 million on the back of stronger than anticipated second half like-for-like sales.
Property company Great Portland Estates (GPOR) raised its portfolio rental value guidance, driven by the positive performance of its office portfolio in the first half of the year.
For the six months to 30 September, the portfolio valuation was up 2% to £2.5 billion with offices up 2.8%, retail down 0.8% and developments up 29.7%.
Portfolio rental value is now expected to grow in a range of 2% to 5% for the financial year. Shares moved 1.3% higher to 756p on the news.
Halma Plc (HLMA), the global group of safety equipment companies, announced it had acquired Infinite Leap, a US healthcare consulting and services provider for real-time location technologies.
The initial cash consideration is $30 million, with an agreement to pay additional earn-out considerations based on growth targets in each of the two financial years to 30 September 2023 up to a maximum of US$17 million. The market was encouraged by the news with the shares nudging 1% higher to £31.59.
Shares in supply-chain company Wincanton (WIN) edged 1.3% higher to 386p after it reported higher first-half revenues and profits thanks to ongoing growth in e-commerce.
For the six months ended 30 September 2021, pre-tax profits rose 31.4% to £25.1 million as revenue increased by 19.3% to £690.3 million.
The interim dividend was raised by 40% to 4p per share as the firm said it remained on track to deliver full year profits consistent with market expectations.
Shares in low cost airline Ryanair (RYA) drifted 0.3% to €16.13 after it announced its intention to delist from the London Stock Exchange next month. The group maintained that the decision was prompted by the costs related to retaining an additional listing.
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