UK stocks inched higher on Tuesday in anticipation of the government setting out details on how to make workplaces ‘Covid secure’ and restart the economy.
The FTSE 100 index of leading stocks added 28 points or 0.5% to 5,968 led by telecoms and retailers, while travel stocks and property companies limited the gains.
Mobile operator Vodafone (VOD) helped support the index, rising 3.7% to 117p after posting in-line results for the full year to 31 March.
Revenues increased 3% to €44.97bn while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 2.6% to €14.88bn.
The firm held its final dividend and hinted that it would look to spin off its European Towers business in the early part of the current financial year.
Supermarket group Morrisons (MRW) gained 2.4% to 193p after it reported organic retail revenues for the three months to 10 May up 5.1% with growth spiking to 9.6% in the last fortnight.
Sales were boosted by online demand, both through partner Ocado (OCDO) and through the Amazon Prime Now service, but the firm said it had ‘minimal certainty or visibility’ around the full year outcome and suspended its special dividend payment.
DIY retailer Kingfisher (KGF) topped the FTSE, rising 4.5% to 170p despite posting first quarter sales to 30 April down 24.8% to £2.15bn.
B&Q sales were down 21.8% to £663m while sales at its French stores fell 41.5% to £596m. One bright spot was Screwfix, which thanks to its focus on trade customers saw sales dip just 4.7% to £432m.
Investors focused on stronger online sales and an improving overall trend after sales rose 2.7% in the first week of May.
Fishing tackle retailer Angling Direct (ANG) confirmed its revenue and EBITDA targets for the full year to 31 January and reported strong Pan-European sales in the quarter to date, sending shares up 5.5% to 62.5p. Investors also looked towards the lifting of restrictions on recreations such as fishing later this week.
Electricals retailer AO World (AO.) fared less well, dropping 5.4% to 81p despite claiming it had grown its market share during lockdown and reassuring investors that full year revenues and adjusted EBITDA would fall ‘within the range of analyst expectations.’
Measurement and testing equipment maker Renishaw (RSW) edged up 1% to £38.19 despite posting a 9.6% fall in revenues and a 77% fall in pre-tax profits for the nine months to 31 March.
The firm said it already faced ‘challenges’ to its business before the pandemic, due to the US-China trade war and slowing sales to the machine tool sector. It also cautioned that demand in Europe and the Americas would begin to weaken in the coming months.
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