Major UK share indices managed to hold on to earlier gains and finished Wednesday’s trading session in positive territory.
This was despite continuing concerns surrounding the potential economic impact of the Omicron coronavirus variant, and disappointment surrounding the latest UK third quarter gross domestic figure print.
The FTSE 100 Index and the FTSE 250 Index ended the session 0.61% and 1.14% higher at 7341.66 and 23,080.79 respectively.
UK GDP rose 1.1% during the third quarter, coming in weaker than the initial estimate for growth of 1.3%. It represents a marked slowdown from the 5.4% growth seen in the in the second quarter, when restrictions were lifted.
‘The disappointing figures on the UK economy were before the Omicron wave hit, so there will be some concern that they represent the calm before the storm and the situation will be revealed to be significantly worse when the fourth quarter numbers are printed,’ said Russ Mould, investment director at AJ Bell.
‘Investors are preparing to go into hibernation for Christmas and will hope by this time next week we’ll know a lot more about the trajectory of Omicron and the likelihood of further restrictions to contain it, and just how long those curbs will be in place,’ said Mould.
Britain’s recent tepid economic growth contrasted with that of the US where gross domestic product increased at a 2.3% annualised rate in the third quarter. The print was an upward revision to the 2.1% rate estimated in November.
The revision predominantly reflected an improvement in in consumer spending coupled with a higher level of business inventory investment which offset a downward revision to exports.
CRODA’S CHEMICALS SALE
Speciality chemicals group Croda (CRDA) has agreed to sell most of its bio-based industrial business to US-based food processing firm Cargill in a $1billion deal.
The UK’s Croda had launched a strategic review earlier this year of its two businesses for industrial customers, including the performance technologies unit it is now selling.
Croda shares drifted 0.3% to £99.42
Healthcare investor Syncona (SYNC) jumped 5.5% to 211p after announcing that portfolio company Gyroscope Therapeutics would be sold to Novartis for up to $1.5 billion.
The deal included an upfront payment of $800 million and up to $700 million contingent on the achievement of milestones related to clinical development, regulatory approvals and reimbursement.
Hospital owner Spire Healthcare (SPI) firmed 2.4% to 250p after it agreed to sell a medium-sized hospital in Cheshire to NWI Jersey for £89 million.
Spire, which would lease back the asset, said the deal would generate a book profit of around £23 million on gross assets of £66 million.
ELSEWHERE ON THE MARKET
Therapeutics firm Avacta (AVCT:AIM) jumped 16.9% to 123.8p after its lateral flow test received a CE mark for self-testing in the UK and EU.
The company, which specialises in cancer therapies and diagnostics, has developed the AffiD SARS-CoV-2 antigen lateral flow test in partnership with Medusa Healthcare.
Medusa is a medical diagnostics business recently set up by Richard Hughes and Mahmud Kamani, both founder shareholders of Boohoo.com (BOO:AIM).
Ready meals provider Parsley Box (MEAL:AIM) dropped 15% to 36.5p, as it forecast a slight rise in full-year revenue that was 'marginally' above its most recent forecast, following a drop off in the second half.
Parsley Box said stock availability was significantly constrained, resulting in a reduction of about 20% in order numbers and therefore revenue in the second half compared to the first.
Real-estate company LondonMetric Property (LMP) edged 0.7% higher to 276p following news it had acquired Savills IM UK Income and Growth Fund in a deal valued at £122.2 million.
The related property portfolio had a weighted average unexpired lease term of 11 years.
Challenger lender Metro Bank (MTRO) added 7% to 94.25p despite being fined £5.4 million by Britain's prudential regulator for failings in its regulatory reporting.
The Prudential Regulation Authority said the fine related to reporting of Metro Bank’s capital position and for failing to act with due care regarding regulatory reporting governance, controls and investment.
