Stock prices in London were mixed at Midday Monday, with fintech Plus500 in the FTSE 250 enjoyed a boost after reporting a profit rise and a share buyback programme.
The FTSE 100 index was down just 3.61 points at 8,307.80. The FTSE 250 was up 22.16 points, 0.1%, at 21,071.07, and the AIM All-Share was down 1.43 points, 0.2%, at 775.70.
The Cboe UK 100 was down 0.1% at 829.91, the Cboe UK 250 was up 0.2% at 18,475.57, and the Cboe Small Companies was up 0.1% at 16,870.72.
In European equities on Monday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was up 0.2%.
‘The FTSE 100 started the week in sluggish fashion, starved of catalysts either from a macro-economic or corporate point of view,’ said AJ Bell investment director Russ Mould.
On Tuesday, the People’s Bank of China is due to announce its latest interest rate decisions. The bank is expected to keep rates steady.
Attention will then shift to the annual Jackson Hole Symposium in Wyoming, with Federal Reserve Chair Jerome Powell scheduled to speak on Friday.
‘Investors will be looking for hints on the trajectory of rate cuts, with a cut in September more or less a racing certainty in the minds of most observers,’ AJ Bell’s Mould said.
‘Powell’s words and tone could help determine whether the market’s bounce since the short, sharp shock in early August is sustained.’
Stocks in New York were called to open mixed. The Dow Jones Industrial Average was called up marginally. The S&P 500 index is called up marginally, and the Nasdaq Composite up 0.1%.
The pound was quoted at $1.2959 at midday on Monday in London, higher compared to $1.2899 at the equities close on Friday. The euro stood at $1.1031, up against $1.0995. Against the yen, the dollar was trading at JP¥146.40, lower compared to JP¥148.24.
In the FTSE 100, Barratt Developments rose 0.9%. In the FTSE 250, Redrow edged up 2.2%.
Barratt said it expects to finalise the acquisition of fellow housebuilder Redrow ‘later this week’, despite concerns raised by the UK’s competition regulator.
Leicestershire-based Barratt struck the £2.52 billion deal with Flintshire, Wales-based Redrow in February.
The merger has since come under scrutiny from the UK’s Competition & Market Authority, which launched a phase 1 investigation in March.
Earlier this month, the CMA stopped short of pursuing a Phase 2 investigation after concluding that the combination only has a ‘high combined share’ in just one local area, which is Whitchurch, Shropshire.
Other housebuilders lacked direction. Taylor Wimpey lost 0.1%, whilst Persimmon edged up 0.1%.
Figures on Monday showed that selling prices dipped in August as would-be buyers put off home-buying plans amid summer holidays.
Rightmove’s House Price Index showed the average asking price fell 1.5% to £367,785 in August, in-line with the 20-year average during the typically quiet month.
In addition to seasonal slowness, those who did enter the market in August were likely urgent to sell, pricing more competitively and pushing down prices overall, Rightmove explained.
In the FTSE 250, Plus500 was the star performer, up 4.0%.
The London-based fintech group and trading platform operator said it expects full-year results to be ahead of expectations after ‘excellent’ financial, operational and strategic progress in the first-half.
In the six months that ended June 30, Plus500 said pretax profit rose 5.0% to $183.7 million from $174.9 million a year prior. Revenue climbed 8.1% to $398.2 million from $368.5 million a year earlier.
Reflecting this, and the strong financial performance, Plus500 declared an interim dividend of $0.4686 per share, up 14% from $0.4100 a year prior. It also declared a special dividend of $0.5314, up 66% from $0.3200 previously.
In addition, Plus500 announced a $110.0 million share buyback, comprising an interim buyback programme of $35.4 million and a special buyback programme of $74.6 million. These will start following completion of the existing programme, which was announced back in February.
On AIM, Hummingbird Resources shot up 19%.
The gold miner said it has completed the strategic refinancing of a portion of its existing loan facilities with its principal financing partner Coris Bank International.
It said the refinancing package amounts to about $25 million at an annual interest rate of 12%.
‘This strategic refinancing is a key component of Hummingbird’s broader financial strategy, aimed at reinforcing the company’s balance sheet and ensuring operational continuity amidst the ongoing adjustments at Kouroussa and Yanfolila. It positions the company to better manage its resources while continuing the ramp-up to achieve commercial production, anticipated later this quarter,’ Hummingbird said.
Brent oil was quoted at $78.79 a barrel at midday in London on Monday, down from $79.91 late Friday.
Gold was quoted at $2,496.00 an ounce, higher against $2,486.76.
Still to come on Monday’s economic calendar, US Federal Reserve Governor Christopher Waller is due to speak.
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