The FTSE 100 is back into positive territory after a poor start to the week. Yesterday's declines caused by commodities weakness are clawed back with the blue chip index rising 34 points to 6,863 in early trading on Tuesday.
Housebuilder Persimmon (PSN) has defied expectations of a slowdown in the property market with a 17% increase in private sale reservations since 1 July versus the same period a year ago. Chief executive Jeff Fairburn says he expects a ‘good autumn sales season’. Its shares rise 3.2% to £18.52.
Airline catering group Journey (JNY:AIM) has received a 240p cash per share takeover offer from Jaguar Holdings, an investment business associated with Harwood Capital. The deal is priced at 18% above the closing share price on the day before the announcement.
Life insurance group JRP (JRP), the merged entity of Just Retirement and Partnership Group, rallies 11% to 98p as it confirms in line trading and flags that it anticipates posting an embedded value of 200p per share for the year to 30 June. The pair which came together in a £1.4 billion deal in April, says it remains on track to extract up to £40 million of cost synergies from that agreement.
Investors are relieved there is no more bad news from Hostelworld (HSW) following a string of downbeat trading updates earlier this year. Half year results are slightly above expectations and the hostel booking platform maintains full year earnings guidance, helping to drive up the shares 1.2% to 157.88p.
Harvest Minerals (HMI:AIM) jumps 15% to 20.38p on better than expected test results from its Arapua fertiliser project in Brazil. It hopes to start trial mining later this year.
Fresh from abandoning a joint takeover bid for William Hill (WMH) with 888 (888), the focus is back on Rank’s (RNK) day job with a solid set of full year results. Pre-tax profit is up 15% to £85.5 million and the second half dividend is lifted 18% to 4.7p. Rank's shares rise 2.9% to 227.95p on the news.
A host of small cap resources plays trade firmly on Tuesday with Jersey Oil & Gas (JOG:AIM) jumping more than 20% to 37p as it secures a farm-out deal for part of its North Sea-based Seaward Licence. ZincOx (ZOX:AIM), the mining firm, is also up, adding 17% at 0.68p.
