UK markets are largely flat on inauguration day for Donald Trump with the FTSE 100 nudging six to seven points lower to stay just above 7,200 on an otherwise typically dull Friday for corporate news. The UK blue-chip index closed down 0.54% at 7208.44 points on Thursday, dragged down by British parcel and postal firm Royal Mail (RMG), whose results were badly received, which you can read about here. Its shares continue their decline on Friday, off another 2.8% at 410.6p.
The company news that there is remains largely positive. £1.2bn chemicals maker Synthomer (SYNT) says estimated 2016 underlying pre-tax profit, at constant currencies, will beat market expectations. The shares respond by jumping more than 14% to 431p, investors welcoming word that fourth-quarter trading was boosted by stronger-than-expected trading in Europe and Asia.
Translation software company SDL (SDL), a former FTSE 250 member, is similarly upbeat, saying too will put in a 2016 performance ahead of expectations, albeit slightly. The plunging pound largely gets the credit although the shares still rally nearly 6.5% to 490p, continuing a strong run since November.
Among the blue-chips, Chilean copper miner Antofagasta (ANTO) says overnight that it plans to sell its 40% stake in the Alto Maipo hydroelectric power project to partner AES Gener, exiting the project entirely. The market seems unsure if this is a good idea, marking the stock a little more than 1% lower at 744p, although that may be more down to volatile commodity pricing.
Financial lender Close Brothers (CBG) says it expects to report strong results for the first half, driven by strength in its banking division and higher trading income from market maker Winterflood. But the news is largely overlooked by investors, the stock barely budging, just 6p higher at £14.38.
Japanese financial services firm Orix Corp has agreed to buy $290m worth of shipping loans from Royal Bank of Scotland (RBS), sources with direct knowledge of the deal tell Reuters. RBS shares nudge 1% higher at 22.3p.
Reports say that Czech telecoms regulator CTU is pushing O2 Czech Republic and Vodafone (VOD) to cut wholesale prices for mobile internet services charged to virtual operators, warning they could lose frequencies won in a past auction. Shares in the UK mobile group remain unaffected at 206.15p.
UK media IP company Character Group (CCT:AIM) , the firm behind Doctor Who, The Clangers and Peppa Pig, tumble more than 12% to 455p as it tells the market to expect a weak first half. The weak pound is apparently squeezing margins and this will leave the company much more to do to meet full year forecasts, although management remains confident that it can do just that.
Building and construction industry software supply minnow Elecosoft (ELCO:AIM) soars more than 16% to 35p after reporting that 2016 profit will be 'significantly ahead of market expectations' before M&A costs. Analysts were already anticipating a strong year, forecasting record adjusted pre-tax profit of £1.4m versus £1.1m in 2015. FinnCap ups its estimate to £1.7m, which had been the estimated figure for this year.
