London’s FTSE 100 finished Tuesday’s session down 2% at 6,859.87 as stronger sterling and resurgent concerns about the course of the global Covid-19 pandemic weighed on investor sentiment, while tobacco stocks remained weak amid reports of US regulatory pressure. On Wall Street the S&P 500 was down 0.9% at 4,128.07 by 4.30pm UK time.
TOBACCO STOCKS TUMBLE
Shares in British American Tobacco (BATS) and Imperial Brands (IMB) tumbled 7.6% to £26.93 and 7.3% to £14.66 respectively on reports Joe Biden’s administration is looking to cap nicotine levels in cigarettes, with officials across the pond also looking at whether they will pursue a ban on menthol cigarettes.
Primark owner Associated British Foods (ABF) fell 5.9% to £23.14 after resuming its dividend payment at a lower rate as first-half profit halved following a slump in Primark sales as the national lockdowns forced stores to close.
The company declared an interim dividend of 6.2p per share, down from 12.05p per share last year. Looking ahead, the company said it continues to expect Primark profit to be lower than last year.
Chemicals company Elementis (ELM) saw big gains from earlier in the day on takeover reports wiped out as US rival Innospecs confirmed its interest had been rebuffed a deal was no longer under active consideration. By the close Elementis was down 1% at 134.3p, having earlier reached highs of 165.8p.
Mining giant Rio Tinto (RIO) softened 2.2% to £59.55 as it reported a drop in first-quarter production of iron ore, the commodity from which it makes the majority of its earnings, but maintained annual guidance ranges for all its products.
AVAST LIFTS REVENUE GUIDANCE
Cybersecurity company Avast (AVST) advanced 1.3% to 477.6p after lifting its guidance on annual revenue growth following the sale of its family mobile business and continued demand seen in the first quarter of the year.
Fresh prepared food provider Bakkavor (BAKK) gained 3.2% to 129p after resuming its dividend following improved performance in the first quarter of the year as lockdown restrictions begin to ease.
The company said that ‘while uncertainty remains, improved visibility on sales for the coming months has made the board more confident about the group’s liquidity position’ and so it will be recommending the payment of the previously suspended final dividend for 2019 of 4p per share.
For the 13 weeks to 27 March 2021, revenue was 4.4% lower than the prior year and 2.6% lower on a like-for-like basis.
OTHER NEWS
Price comparison website Moneysupermarket.com (MONY) fell 3.5% to 261.2p after it said its first-quarter revenue had dropped 20%. Moneysupermarket, however, said it expected its full-year results to be in line with market expectations.
FTSE 250 gold miner Petropavlovsk (POG) gained 1.4% to 27.2p as it reported a 49% drop in first-quarter production but stuck to its annual output guidance.
Investment manager and advisory support group Tatton Asset Management (TAM:AIM) jumped 8.5% to 410p on guiding for annual results to be ahead of analysts’ forecasts.
Tatton’s inflows for the year through March were £755 million, or 11.3% of opening assets under management, which jumped 35% to £9 billion, up from £6.7 billion year-on-year.
Cosmetics company Warpaint London (W7L:AIM) soared 14% to 123p as it said it had continued to experience improved trading conditions in the first quarter of 2021, with sales and margins both on the rise.
DiscoverIE (DSCV) sparked up 4.8% to 780p as the electronics engineer said it now expects full year underlying earnings to be ‘above the upper end’ of market expectations with trading momentum having continued to strengthen in the final two months of last year.
Music and audio products play Focusrite (TUNE:AIM) rose 2.3% to £11.25 after announcing the launch of a new brand, Optimal Audio, to target the commercial audio market.
