UK stocks underperformed the rest of Europe as basic resources stocks such as BHP Group (BHP) and Rio Tinto (RIO) outweighed gains in consumer stocks. Having surpassed its February high yesterday, at 9am the FTSE 100 had eased back 17 points or 0.25% to 6,713 points.
The move down came against a strongly risk-on move in US markets overnight with the Nasdaq 100 having its best day since November, climbing more than 4% as investors bought the dip in technology stocks.
Tesla shares jumped more than 20% yesterday, their biggest one-day gain in a year, while bitcoin moved to a new record above $54,000. Meanwhile, US Treasury yields pulled back from recent highs.
Gold finally caught a bid, rising more than 2% to $1,716 after falling to lows not seen since last April. Brent futures pulled back to below $67 against a recent high of $70 while sterling trod water at $1.3870.
COMPANY NEWS
Pump and heat management equipment maker Spirax-Sarco (SPX) posted a 3% drop in full year revenues and a 1% drop in operating profits, but strong cost control meant per-share earnings were up 4% allowing the firm to raise the total dividend by 7% to 118p.
The firm cited a better-than-expected performance in the final quarter of last year and strong demand for its Watson-Marlow products from the pharmaceutical sector. Shares were the best performers in the FTSE, rising 3.3% to £113.85.
The UK’s largest life insurer Legal & General (LGEN) posted flat operating profits for the year to December while pre-tax profits were down 12% reflecting the impact of lower interest rates on its investments.
The firm said that despite the impact of Covid it had met its targets as part of its five-year 2020 to 2024 plan with a Solvency II operational surplus of £1.5 billion and full year dividend of 17.57p per share, in line with the previous year. Shares drifted off 0.3% to 281p.
Fast food delivery firm Just Eat Takeaway (JET) reported full year sales in line with estimates at €2.4bn, an increase of 54%, and earnings before interest, taxes, depreciation and amortisation (EBITDA) ahead of forecasts at €256 million.
Chief executive Jitse Groen said he expected ‘a further acceleration of our order growth in 2021 compared with last year’. Shares initially traded higher but reversed to trade 0.2% lower at £68.28.
Shares in Tullow Oil (TLW) advanced 0.4% to 52.2p after the energy exploration and production firm reported a smaller 2020 pre-tax loss than the previous year and confirmed its production targets for 2021.
Wagamama owner Restaurant Group (RTN) has taken advantage of the sharp rally in its share price, from 60p in January to 110p yesterday, to raise £175 million of fresh capital.
The firm says it will use the cash to protect the business from any resurgence of Covid, reduce gearing and give it flexibility to acquire new sites. Shares jumped 11.6% to 123p as investors applauded the cash raise.
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