UK stocks began the shortened trading week on the front foot with the FTSE 100 up 65 points or 0.9% to a new year-high of 7,437 points in early trading.
Leading the market higher were domestically oriented consumer and financial stocks including retailers AB Foods (ABF), Next (NXT) and high street bank Lloyds (LLOY).
Shares in Asia fell overnight as investors continues to fret over the spread of the Covid virus, but US index futures pointed to fresh highs when Wall Street opens later today.
With no major economic news to throw markets off course between now and the end of the year, the path of least resistance would seem to be upward.
COMPANY NEWS
Mining group Anglo American (AAL) confirmed it was in early-stage discussions with Brazilian firm Vale over the potential to jointly develop the latter’s Serpentina iron ore resource.
Serpentina is next door to Anglo’s existing Minas-Rio iron ore operation, which would make a joint development an attractive proposal. Miners were out of favour however, with Anglo shares dropping 0.7% to £30.20.
Pharmaceutical maker AstraZeneca (AZN) announced it had struck an agreement with US firm Ionis for the global development and sales of the latter’s eplontersen cardiomyopathy treatment, boosting its shares 0.6% to £86.61.
AstraZeneca will make an upfront payment to Ionis of $200 million, followed by milestone payments of up to $485 million assuming eplontersen gains regulatory approvals.
The UK firm will book all sales generated under the agreement and will make up to $2.9 billion of sales-related payments if eplontersen revenues hit $6 billion, along with royalties.
SMALL- AND MID-CAP NEWS
Specialty chemical company Iofina (IOF) confirmed it would meet its second half iodine production target and said pricing had improved sharply since the third quarter update with current pricing levels expected to continue into next year. Investors cheered the update, lifting shares 7.4% to 15.3p.
Language technology firm RWS (RWS) announced that chief financial officer Des Glass had resigned over Christmas, although he would remain in post until a successor had been found.
Glass’s resignation comes just months after the departure of chief executive Richard Thompson, who had led the expansion of the group for most of the last decade. Shares edged up 1% to 647p.
Shares in building materials firm Northern Bear (NTBR) sank 9.7% to 60p after the company revealed one of its subsidiaries had received a legal claim for up to £2m from French utility group Engie for roofing work carried out on one of its facilities more than a decade ago.
The company said the directors of the subsidiary believed any claim would be ‘entirely without merit’ and their position was supported by third party technical and legal experts.
FOR A LIST OF FTSE 100 GAINERS AND LOSERS SEE HERE
