The FTSE 100 climbed back into positive territory at midday Friday but remained directionless ahead of key US inflation data due at 1.30 UK time.
November consumer prices are expected to rise by 6.7% on an annual basis, the highest since 1982, putting further pressure on the Fed to speed up the removal of monetary stimulus.
Latest data showed that the UK economy grew just 0.1% in October compared with prior-month growth of 0.6% and a forecast of 0.4%. That implies a that the UK economy remains 0.5% smaller than it was in February 2020, before the onset of the pandemic.
At 12pm, the FTSE index of leading shares was up 1 point at 7,320.
PRIMARK SHOPPERS NOT PUT OFF
Grocery to fashion retail group AB Foods (ABF) posted a mixed trading update ahead of its annual general meeting.
While the grocery, ingredients and sugar businesses struggle with port congestion and higher energy and freight costs, the Primark fashion business is trading ahead of expectations and margins are also better as the firm faces into the most important selling period of the year. The shares gained 0.4% to £19.41.
Mining giant Anglo American (AAL) confirmed its full year guidance and projected it would grow by 35% over the next decade with ‘an attractive 50% margin’.
The firm also increased its near-term ‘performance improvement target’ to between $3.5 billion and $4.5 billion by 2023 as growth projects come onstream. The shares dropped 1% to £29.42.
Specialist food packing firm Hilton Foods (HFG) announced it would raise £75 million or 8% of its current issued capital in order to finance the purchase of smoked salmon producer Dutch Seafood Company, taking it into the US market for the first time.
The capital raise will also go towards refinancing the previous acquisition of Fairfax Meadow and is expected to be earnings accretive within 12 months. The shares dropped 0.8% at £11.86.
ELSEWHERE ON THE MARKET
Shares in sustainable infrastructure firm Nexus (NEXS:AIM) gained 0.2% to 232.5p after it posted a rebound in revenues and earnings for the year to September and reinstated its dividend.
Nexus also said it was looking at some ‘exciting strategic opportunities’ for its eSmart Networks electric vehicle charging business ‘to crystalise shareholder value’, which in layman’s terms suggests it is looking to sell to an outside buyer or to float the unit separately.
Shares in contract clinical research firm Open Orphan (ORPH:AIM) jumped 8.7% to 20.1p after it revealed a $13.4 million contract with a US biotech firm to test its novel influenza treatment in human trials at the company’s state-of-the-art lab in London.
The study is expected to start in the second half of next year, alongside the recent £5.1 million contract win for trials for a treatment against respiratory syncytial virus announced last month.
‘Green’ investment trust SDCL Energy Efficiency Income (SEIT) posted a 42% jump in the value of its portfolio to £785 million between March and September and a 36% increase in net asset value to £944 million after new investments and commitments of £208 million.
After a capital raise of £250 million in September, net asset value per share rose a more pedestrian 2% to 104.5p while the total NAV return was 4.7%. The shares dropped 0.9% 116p.
FOR A LIST OF FTSE 100 RISERS AND FALLERS SEE HERE
Disclaimer: The author owns shares in Open Orphan and SDCL Energy Efficiency Income Trust
