A solid start to trading on Wall Street helped London’s FTSE 100 regain some poise after a rollercoaster week, with the blue chip benchmark finishing 0.4% higher at 7,087.90 points on Friday.
The FTSE 250 firmed 0.6% to 23,750.89 thanks to a strong showing from the retail sector, boosted by an improved bid for Morrisons (MRW) and an upbeat trading statement from Marks & Spencer (MKS).
COMPANY NEWS
High street institution Marks & Spencer topped the FTSE 250, its shares surging the best part of 14% higher to 162.4p after the retailer reported a better than expected start to the year and raised full year profit guidance.
In a surprise update, Marks & Spencer flagged outperformance in food, a ‘good recovery’ in clothing and home sales and issued its first upgrade to earnings for some years, demonstrating that CEO Steve Rowe’s turnaround strategy is delivering results.
Food retailer Morrisons firmed 4.5% to 291.8p after agreeing to an improved offer of 285p from American private equity group Clayton Dublier and Rice (CD&R), which compares to its previous offer of 230p a share and trumps a rival offer of 270p a share (plus a special dividend of 2p), from Fortress.
Other food retailers Sainsbury’s (SBRY) and Tesco (TSCO) were marked up 1.7% to 294.2p and 1.2% to 247p respectively in response to the earnings upgrade from Marks and Spencer and the improved offer for Morrisons.
Pharmaceutical giant AstraZeneca (AZN) traded 0.2% lower at £87.17 following two contrasting news updates.
On a positive note the company announced a positive update on its Covid-19 antibody combination. However, this was to some extent offset by news that its rare disease business Alexion is terminating trials of a drug candidate for amyotrophic lateral sclerosis, a rare neurodegenerative disease due to a lack of efficacy.
OTHER RISERS
Elsewhere, specialist lending and retail savings group OneSavings Bank (OSB) edged 2% higher to 507p on well-received results for the six months to June which revealed a sharp increase in profitability.
On a statutory basis profit before tax increased to £221.9 million compared to £99.3 million for the comparable prior year period.
Insulation and building materials group Kingspan (KPG) gained 2.3% to €96.3 after the company posted a sharp jump in revenues and earnings for the first half thanks to what it admitted was an unusually strong market.
Logistics solutions company Clipper Logistics (CLG) rose 0.6% to 817p on the news it has won a new five-year contract with Ireland-based sports retailer Life Style Sports.
And automotive retailer Vertu Motors (VTU:AIM) sped 6.8% ahead to 50.4p after it upgraded full year pre-tax profit guidance again amid continued strong trading, said it plans to reinstate dividends and also announced a £3 million share buyback.
