Despite optimism over vaccine rollouts, London’s FTSE 100 opened lower on Wednesday as a strengthening pound weighed on exporters and investors continued to worry about global inflation risks.
By 8.35 am, the blue chip benchmark was off 0.5% at 6,595.1 points, while the FTSE 250 was 0.2% higher at 21,090.6.
LLOYDS RESUMES DIVIDEND
High street bank Lloyds (LLOY) rose 2.6% to 40.2p early on after resuming its dividend, proposing a final ordinary payout of 0.57p for 2020, the maximum allowed under the regulator’s guidelines and down from the previous year’s 1.12p shareholder reward.
Although the bank reported a fall in annual profit as lower rates weighed on income and more money was set aside to cover bad debts amid a pandemic-led deterioration in the economic outlook, Lloyds forecast net interest margin for 2021 to be in excess of 240 basis points, and also confirmed that subject to regulatory approval, new chief executive Charlie Nunn will get started on 16 August.
Meanwhile, Metro Bank (MTRO) cheapened 5.3% to 142p as the challenger lender posted a deeper annual loss for 2020 after racking up more credit impairments due to the pandemic. Pre-tax losses for the year to December widened from £130.8 million to £311.4 million.
RECKITT RISES
Durex-to-Dettol maker Reckitt Benckiser (RB.) rose 1.6% to £60.64 after reporting 11.8% like-for-like sales growth for 2020 and swinging to an annual profit as impairment charges fell, though underlying earnings were pressured by weaker margins.
Reckitt Benckiser kept its annual divided steady at 174.6p and forecast modest like-for-like sales growth of flat-to-2% for 2021.
The Slough-headquartered consumer goods giant also announced the sale of its Scholl foot-care brand to Yellow Wood Partners, as well as the acquisition of the Biofreeze topical pain relief brand from Performance Health, for undisclosed sums.
Elsewhere, communications giant Vodafone (VOD) fell 1.4% to 128.1p after it announced plans to float its Vantage Towers infrastructure business in Germany before the end of March.
Vodafone had previously revealed plans to spin-out the business, which it will list on the Frankfurt Stock Exchange, targeting ‘a meaningful minority free float’.
AVIVA EXITS TURKEY
Life insurer Aviva (AV.) shed 0.2% to 374p after agreeing to sell its entire 40% shareholding in a Turkey joint venture to Ageas Insurance for £122 million.
Plastics manufacturer Synthomer (SYNT) edged 0.5% higher to 467.2p despite revealing it is not in talks about a possible takeover bid for the company. This was in response to press speculation suggesting CVC Capital Partners was exploring a possible bid.
And photonic components & systems maker Gooch & Housego (GHH:AIM) rallied 3.7% to £12.75, having seen improved levels of demand across the industrial laser sector, led by Asia.
