UK stocks held onto early gains by Tuesday lunchtime, reflecting increased risk appetite and tame bond markets despite stronger economic data.
UK car sales rose around 11% in the key selling month of March. While showrooms have been closed for most of the past year, dealerships have kept sales afloat thanks to ‘click and collect’ and delivery services.
By 12pm the FTSE 100 index was 1.2% higher at 6,821 points led by mining and industrial stocks as investors bet on the global recovery trade.
The FTSE 250 mid-cap index was 1.1% higher at 21,970 points with a strong showing for bus, rail and travel stocks.
COMPANY NEWS
Oil major BP (BP.) announced it had reached its net debt target of $35 billion by the end of the first quarter, ahead of its estimates thanks to ‘earlier than anticipated delivery of disposal proceeds combined with very strong business performance during the first quarter’.
The firm now expects disposal proceeds for the full year at the top end of its $4 billion to $6 billion target range, which combined with better trading results could mean an increase in the share buyback programme. The shares added 3.5% to 300p.
Fellow oil producer Tullow (TLW) reported it had started a multi-year drilling campaign offshore Ghana at the weekend, as outlined at its November capital markets day. The firm expects the Jubilee Field to generate ‘material cash flow over the next decade and deliver significant value for Ghana and investors’. The shares gained 3.2%, to 50.7p.
Accounting software firm Sage (SGE) revealed it had agreed to sell its Swiss business to Infoniqa, owned by private equity firm Warburg Pincus, for an undisclosed sum.
For the year to last September, the unit delivered revenues of £25 million and operating profit of £4 million, which is small change in the scheme of things. The shares dipped 0.4% on the news to 622.7p.
Home repair and improvement firm Homeserve (HSV) confirmed its full year pre-tax profit target of £191 million, in line with market forecasts, supported by higher revenues from its Membership business in the US and UK.
However, net debt was higher due to an acceleration in M&A in the HVAC (heating, ventilation and air-conditioning) business as the group grew its market share with more deals in the second half. The shares dipped 2.5% to £11.82 in response.
Foreign exchange firm Argentex (AGFX:AIM) also said it would post in-line full year revenues of £28.1 million after a return of client confidence and higher turnover in the second half made up for a disappointing first half.
While the firm stuck to its ‘prudent and proactive’ risk management strategy, new client additions were impressive with 665 new corporate customers joining the platform over the course of the year. The shares eased 0.2% to 128p.
Low-cost airline Wizz Air (WIZZ) reported it had carried 480,000 passengers last month, just below 20% of its capacity and 72% fewer passengers than the same month last year. The shares flew 0.9% higher to £50.21.
Airline and travel industry chiefs were disappointed yesterday by the prime minister’s failure to rule out delaying international holidays beyond the current date of 17 May and suggestions travellers may need a ‘vaccine passport’.
