UK stocks edged higher in early dealings on Monday, despite a drag from inflation-related fears, as local businesses continued to report a bounce back in trading activity following the easing of lockdowns.
At 8.36 am, the benchmark FTSE 100 index was up 0.3% at 7,040.12 points, while the more domestically-focused FTSE 250 was 0.1% higher at 22,420.15.
The FTSE 100 traded higher despite miners’ share prices being pulled down by falling iron ore prices as Chinese authorities warn of ‘excessive speculation’, while oil traded at a 5-day high and cryptocurrencies remained under pressure amid a crackdown in China.
STRONG NUMBERS FROM CONFIDENT KAINOS
In company news, digital transition company Kainos (KNOS) sparked up 4.3% to £14.73 on impressive full year results and a positive outlook statement.
Results for the year to March 2021 came in at the high end of consensus expectations, with pre-tax profit more than doubling to £50.3 million as revenue increased 31% to £234.7 million.
And confident Kainos confirmed a robust pipeline and significant contracted backlog of orders, citing significant programmes in partnership with the UK government and with leading commercial and healthcare clients.
Also in demand was Cineworld (CINE), the cinema operator rallying 2.9% to 89.3p after reporting a ‘strong’ reopening weekend in the UK, led by the success of Peter Rabbit 2: The Runaway.
‘This weekend’s performance went beyond our expectations as customers were eager to return to the movies and enjoy the full movie experience, including the traditional popcorn which led to strong concession income,’ enthused the company.
‘With the releases next week of Cruella, and A Quiet Place 2, we expect next weekend’s results to be strong,’ added CEO Mooky Greidinger. ‘When combined with improving consumer confidence and the success of the vaccination rollout, we expect a good recovery in attendance over the coming months.’
TASTY UPDATE
Hilton Food (HFG) fattened up 1.8% to £12.52 as the meat and fish packing play served up another tasty trading update, with performance for the first four and half months of 2021 said to be ‘in line’ with the board’s expectations following a strong start to the year.
Oil and gas company Energean (ENOG) was off 2.2% at 775p, despite boosting production guidance, as investors focused in on a delay to expectations of first gas from its Karish operations following fresh Covid-19 restrictions in Singapore.
IN OTHER NEWS
Housebuilder MJ Gleeson (GLE) gained 3% to 889p on news results for the current year to 30 June are expected to be ahead of market expectations with rising home prices offsetting a rise in input costs.
Demand for consented land from large and medium-sized housebuilders has returned to pre-Covid levels, insisted the company.
Quirky British fashion brand Ted Baker (TED) cheapened 1.8% to 177p after it pushed back the release of its annual results to 10 June due to auditing delays caused by the pandemic, although the retailer confirmed that its results would be in line with consensus expectations.
Cloudcall (CALL:AIM) clipped ahead 5.8% to 73p as the communications group said the recovery seen in the second half of 2020 has continued into 2021, with sales activity continuing to strengthen across all territories.
Respiratory diseases focused Synairgen (SNG:AIM) skipped 3.7% higher to 109.45p after a study showed its inhaled treatment candidate for Covid-19 to be effective against variants of the virus.
Fibrosis and oncology focused Nuformix (NFX) shed 2.2% to 2.2p as it announced the resignation of chief scientific officer Joanne Holland and non-executive director Karl Keegan.
