London’s FTSE 100 jumped 85 points or 1.2% to 7,066 points on Wednesday lunchtime after beleaguered Chinese property developer Evergrande cooled fears of an imminent collapse, stoking a sharp rebound in mining shares.
Asian markets also recovered and US index futures were pointing up ahead of the open, while Brent crude advanced 1% to $75.40 per barrel and sterling recovered from overnight selling to stand at $1.3650.
CORPORATE NEWS
Gambling group Entain (ENT) topped the FTSE 100 leader board, gaining 7.8% to £24.38 after it said US fantasy sports betting firm DraftKings has sweetened its takeover offer for the company from £25 to £28.
Having rejected the earlier offer, the board said it will carefully consider the latest proposal, though Entain ‘strongly believes in the future prospects of the company underpinned by its leading market positions, world class management team and industry-leading technology’.
Cruise company Carnival (CCL) added 1.5% to £15.75 even after it extended pauses on cruise vacations in Australia and New Zealand, where an outbreak of the Delta coronavirus variant has sparked lockdowns.
Over-50s services group Saga (SAGA) softened 0.6% to 349p, despite posting a modest first half profit thanks to gains on a property disposal, as investors focused on an underlying loss caused by the impact of the pandemic on its cruise business.
Health, safety and environmental technology company Halma (HLMA) was marked up 1.1% to £30.91 as it upgraded its annual profit outlook following ‘strong progress’ in the first half of the year as sales growth topped expectations.
Halma said it expected more typical rates of revenue growth and return on sales in the second half of the year, with the latter more in line with historic levels as variable overhead costs gradually return.
Going in the opposite direction was consumer goods group PZ Cussons (PZC), which cheapened 3.5% to 222p after swinging to a full year loss owing to the disposal of Nigerian dairy business Nutricima.
PZ Cussons’ underlying profit rose 11% and it lifted the dividend 5% to 6.09p, although there was also disappointment as the company said revenue in the first quarter of the new financial year had slipped 9% as demand for hygiene products waned post lockdowns.
OTHER RISERS AND FALLERS
Elsewhere, digital transformation consultancy Kin and Carta (KCT) traded sideways at 295p after upgrading its outlook on performance amid continued strong momentum continues.
Since the company’s update on 15 June, trading has remained strong and Kin and Carta now expects net revenue and adjusted profit before tax to be ‘marginally ahead of the top end of market expectations for the financial year ended 31 July 2021’.
Gene and cell therapy group Oxford Biomedica (OXB) rallied 5.4% to £15.58, having swung to a first half profit after revenue more than doubled, thanks partly to a Covid-19 vaccine agreement with AstraZeneca (AZN).
Bowling alley operating Ten Entertainment (TEG) ticked up 4% to 265p as the company reported a 42% leap in like-for-like sales for the 11 weeks since 27 June as it benefits from the easing of lockdowns and the trend towards staycations.
Colour cosmetics supplier Warpaint London (W7L:AIM) fell 2.6% to 211p, having swung to a modest first half profit as demand recovered following as easing of lockdowns and more stores started stocking its products.
However, gross margin shrank to 34.5%, down from 35.1% in the second half of 2020, amid supply-side price inflation and significant increases in freight costs.
