The UK’s benchmark index recovered earlier losses but stayed in the red at the close despite US markets defying pre-market futures for a flat day.
The FTSE 100 finished Tuesday at 7,274.81, off 0.19% on the day with iron ore pricing weakness pulling the mining sector and blue-chip index lower. Antofagasta’s (ANTO) 5.5% slide led the sector loser board with the likes of BHP (BHP), Rio Tinto (RIO), Glencore (GLEN) and Fresnillo (FRES) all down by 3% or thereabouts.
It was a completely different story on Wall Street which made a bright start to trading carrying on where they left off Monday, with the S&P 500 and Nasdaq both hitting fresh record highs after the open, with investors shrugging off worries about this week’s meetings of the Bank of England and US Federal Reserve, and the prospect of interest rate rises and an end to central bank bond buying.
The Dow Jones Industrial Average and S&P 500 had both chalked-up 0.4% gains at the UK close at 36,066 and 4,635 respectively, while the tech-heavy Nasdaq Composite rose 0.2% to 15,628.
OIL SPIKE DRIVES BP PROFITS
Oil giant BP (BP.) reported a strong rise in underlying profit to $3.3 billion for the third quarter, helped by higher energy prices, and boosted its buyback by $1.25 billion while at the same time reducing its net debt by over $8 billion.
However, shares drifted off 2% to 344.95p as sales and operating revenues showed a slight decline and headline losses swelled to $2.5 billion reflecting high input costs.
Shares in Asia-focused bank Standard Chartered (STAN) fell nearly 8% to 466.1p despite the company posting third quarter pre-tax profits of $996 million, more than double last year’s $435 million and comfortably ahead of forecasts of $942 million.
Investors were disappointed by the bank's growth outlook for the coming year, which was markedly less bullish than some of its global rivals.
Betting firm Flutter Entertainment (FLTR) also fell sharply, losing more than 6% to £129.55 after it warned the suspension of its Dutch business due to new regulations in the Netherlands would impact earnings this year and next year.
The news overshadowed a strong third quarter for the US and Australian operations which contributed to a 12% increase in group revenues and a 17% increase in sports betting revenues.
Low-cost European airline Wizz Air (WIZZ) reported a 160% jump in passenger numbers in October to almost 3 million, helped by an increase in available seats. The load factor increased from 65.9% to 79.5% which is positive for operating margins and cash flow.
The shares edged 0.4% higher to £47.05.
MID AND SMALL-CAP WRAP
Shares in aerospace and defence supplier Chemring (CHG) rallied 3% to close at 298p after it said trading and earnings for the year to October were likely to be in line with expectations despite a ‘challenging’ backdrop.
The firm also announced a new contract for its US division worth up to $99 million or £72 million, helping to take its order book to £502 million or 83% of its expected 2022 revenues.
Private equity investment trust Electra (ELTA) announced the successful demerger of Hostmore, with shares set to begin trading on the main market this morning under the ticker HOST.
The legacy Electra business will be renamed Unbound and will swap its listing to the AIM market. For a fuller explanation of the demerger see here.
Shares in Hiscox (HSX) lost more than 3% on the day at 813.6p after the insurer warned that it had put aside £150 million to cope with claims from Hurricane Ida and recent flooding.
This after posting a 6% increase in gross written premiums for the nine months to September, noting ‘strong rate momentum’ across all its businesses including the London market where gross premiums were up 7.2%.
Net premiums in the reinsurance and ILS investment business were up 46% and the outlook for rate renewals in January is improving following a high level of natural catastrophe losses in the third quarter.
Online retailer Marks Electrical (MRK:AIM) announced the successful placing of roughly 27.3 million new and existing shares at 110p, giving the firm a market value of £115 million.
The company said the placing attracted ‘strong support from high-quality institutional investors’ and was over-subscribed. Trading in the shares is expected to begin on Friday.
Shares in consumer appliance maker UP Global Sourcing (UPGS) jumped 12% to 197p after the company reported a 17.9% increase in full year sales to £136.4 million for the year to July, driven by a 23.2% jump in online orders.
Underlying pre-tax profits were £11.2 million, up 36.6% on the previous year, while the dividend was raised 27% to 5p per share. The firm said current trading was in line with expectations despite the ongoing challenges of shipping availability and costs.
Shares in cosmetics maker Warpaint (W7L:AIM) leapt 15% to 174p after the firm raised its full year guidance due to better than expected second half trading.
Sales are now seen recovering to 2019’s level of just under £50 million from £40 million last year, while pre-tax profits will be above 2019’s level of £5.2 million (2020 £2.3 million) and ahead of market estimates.
FOR A LIST OF FTSE 100 RISERS AND FALLERS SEE HERE
