The FTSE 100 traded 0.3% higher at 7,517 on a busy day for company results. Pharmaceuticals and miners were in vogue while consumer goods and drinks companies were out of favour.
Leading the FTSE 100 gains was drug maker AstraZeneca (AZN). Its shares jumped nearly 6% to £67.31 on strong first half numbers and an upgraded sales guidance to low double-digit growth from the prior high single digit expectation.
First-half product sales grew 12% to $11.2bn and included an acceleration in second-quarter product sales to $5.7bn.
The second quarter saw every sales region and all three therapy areas deliver an encouraging performance. Its oncology drugs continued to lead performance delivering 51% growth in the quarter.
Chief executive Pascal Soriot said: ‘The momentum generated last year continued into the first half, consolidating AstraZeneca’s return to growth based on the strength of our new medicines.
‘Five of these new medicines are anticipated to be blockbusters this year, supporting sales across both Oncology and BioPharmaceuticals. Emerging Markets, the US and Japan all grew strongly, and we delivered an encouraging turnaround in Europe in the second quarter.’
At the other end of the spectrum was accounting software provider Sage (SGE) whose shares fell 8% to 750p on a disappointing nine-month trading update.
Organic revenue growth of 5.3% was at the low end of analyst expectations and full year operating margins are expected to be at the bottom end of the range of 23% to 25%.
Also sliding were shares in provider of information-based analytics company RELX (REL), down 4.5% to £18.50. Its first half revenue climbed 6% to £3.9bn with underlying growth up 3% in the six months to 30 June.
The world’s largest spirits company Diageo (DGE) reported annual operating profits up 8% to $4bn for the period ended 30 June. However, free cash flow was behind expectations, knocking the shares 1.7% lower to £32.95.
British-Dutch consumer goods major Unilever (ULVR) reported a 3.3% increase in first-half underlying sales, led by strong growth in its emerging markets, while turnover slipped from prior-year levels.
However, the shares were 1.3% lower at £49.38 on lowered guidance, where the company is now expecting full-year sales growth to be in the lower half of its multi-year 3% to 5% range.
Underlying sales in emerging markets grew 6.2%, while Europe and North America sales were restricted by adverse weather in the second quarter which weighed on ice cream sales. Underlying sales declined 0.6% in Europe and were flat in North America.
Shares in miner Anglo American (AAL) were 1.9% higher at £22.26 after the company reported first half earnings up 19% to $5.4bn, higher than analysts expected.
The company said it expected to target full year 2019 cost and volume improvements of $0.4bn, reflecting its decision to pull back production at De Beers, its diamond business.
The company generated operating cash flows of $4.2bn, up 24% on the prior year which left it with a $7.1bn net cash pile.
Anglo will use some of this cash to buy back $1bn of shares over the year to 20 March 2020.
Outside of the FTSE 100, shares in troubled challenger bank Metro Bank (MTRO) were down 17% to 395p following the release of very poor interim first half results after the market close last night.
The company posted an 84% fall in profit as it saw £2bn of customer deposits leave the business. Separately the company announced the resignation of founder and chairman Vernon Hill.
