UK markets continued their positive run through midday on Wednesday as investors cling to hopes of a stimulus package being agreed by US lawmakers and that UK and EU negotiators can pull a last-ditch trade agreement out of the fire.
The UK’s post-Brexit trade deal transition period ends on 1 January 2021.
Meaningful progress on either the stimulus or Brexit fronts could help markets rally in the final run-in to the Christmas holiday, although with gold prices remaining around $1,850, it appears that there are still plenty of investors hedging their bets by putting money into the safe haven asserts.
At 12.10pm, the benchmark FTSE 100 was 0.9% up at 6,572.21, while the domestically dominated FTSE 250 was 1.5% 20,139.99.
DIXONS CARPHONE RALLIES
In corporate news, electricals-to-mobile phones retailer Dixons Carphone (DC.) rallied 15% to 125.3p as it posted a big rise in first half profit, with strong online sales more than offsetting the forced closure of stores during Covid-19 lockdowns.
The PC World-to-Currys owner also maintained current year and medium term guidance and reported strong current trading, with electricals like-for-like sales up 16% over the six weeks to 12 December despite virus-induced store closures in the UK and Greece.
FTSE 100 distribution and services group Bunzl (BNZL) reversed nearly 6% to £23.32 after it forecast a fall in revenue next year as sales of Covid-19-related products such as gloves continue to slow.
‘At constant exchange rates the group expects revenue in 2021 to be lower than the current year with minimal benefit from larger Covid-19 related orders, which have strongly supported the performance in 2020,’ cautioned Bunzl.
The company also said it has completed the purchase of Snelling, a Canadian business focused on the sale of cleaning products and industrial and foodservice packaging.
Builders’ merchant and DIY retailer Travis Perkins (TPK) rose 3% to £13.38 on the news like-for-like sales grew 8.6% in October and November.
Demand continues to be strong across the DIY market, driving particularly strong sales at Wickes and Toolstation, and Travis Perkins also said it would return business rates relief received as a result of the Covid-19 crisis and repay monies received under the government’s Coronavirus Job Retention Scheme.
Fashion retailer Superdry (SDRY) jumped 10% higher to 263p after it announced that chairman Peter Williams will stand down next year and that co-founder Julian Dunkerton has become its chief executive on a permanent basis.
Dunkerton, who has been leading the t-shirts, jackets and hoodies seller on an interim basis, will be supported by the appointment of former Nike and Vans executive Silvana Bonello as chief operating officer.
OTHER NEWS
Oil services company Petrofac (PFC) fell 6% to 162.1p as it lifted its cost-cutting target while reiterating guidance for ‘materially lower’ profits in 2020 after the Covid-19 pandemic smashed crude markets.
Elsewhere, engineering business Goodwin (GDWN) slumps more than 10% to £30.52 after reporting a 22% fall in half year revenues and pre-tax profits slashed by £1.6 million to £5.8 million.
The company flagged still ‘tough’ business conditions although it remains hopeful of some sort of recovery through the early part of 2021.
Maintenance building products company Epwin (EPWN:AIM) advanced 6% to 94.35p after upgrading its profit outlook following a better than-expected performance since reporting half-year results on 10 September.
Also in demand was computer products maker Concurrent Technologies (CNC:AIM), which surged 14% higher to 109.9p on the news annual revenues and profitability is expected to be ahead of market expectations with cash generation remaining ‘strong’.
