UK stocks continued to feel the pressure at midday on Monday as investors fret over continuing and concerning climb in Covid-19 cases across the UK, Europe and the US, not to mention confirmation of 137 local cases in China.
Adding to the doom and gloom were fading hopes of a stimulus package being agreed ahead of the fast-approaching US election.
Despite flirting with minor gins earlier in the morning session, at 12.20 the benchmark FTSE 100 was 0.42% down at 5,835.65. The mid cap FTSE 250 was also feeling the heat, 0.4% weaker at 18,039.03.
Education group Pearson (PSON) led the thin FTSE leader board, up 3% at 527.8p, but enterprise software firm Sage (SGE) topped the loser board, falling 3.5% to 669.5p in the wake of a lower guidance from larger European peer SAP.
UPDATES ON A QUIET NEWS DAY
Recently-listed beauty website owner The Hut Group, or THG (THG) as it is officially called, rallied strongly on Monday, jumping nearly 9% to 725p after upgrading annual revenue guidance following a 39% jump in third quarter sales.
Flagging ‘continued momentum in the fourth quarter to date, THG is now guiding towards annual sales of between £1.48 billion and £1.52 billion, up from its IPO guidance of around £1.43 billion.
Bottling behemoth Coca-Cola European Partners (CCEP) was also firmly on the front foot, soaring 8% to €35.15 after tabling a €6.5 billion offer to acquire 69.2% of Coca-Cola Amatil, which bottles and distributes Coke in Australia, New Zealand, Fiji, Indonesia, Papua New Guinea and Samoa.
Coca-Cola European Partners, the world’s largest coke bottler by revenue, reported a fall in third quarter revenue, though it said volumes improved significantly compared with the second quarter as the lifting of lockdown restrictions boosted demand.
AIM WRAP
Elsewhere, brownfield developer and housebuilder Inland Homes (INL:AIM) inched 1% higher to 52.5p despite annual results showing the impact of Covid-19. Investors welcomed news of reduced net debt as well as a fairly upbeat outlook statement from Inland.
‘Whilst the general economic outlook remains uncertain, there is a fundamental shortage of high-quality, affordable housing across the UK and particularly in the South and South East of England which creates a sustained demand for our land assets, homes and expertise,’ said the company.
Argentina-focused oil company President Energy (PPC:AIM) lost earlier gains to trade flat at 1.48p, even as it swung to a first-half loss pinned on a steep fall in crude prices. On a more positive note, President Energy’s average monthly revenue for the first two months of the third quarter was $2.6 million, a substantial increase on the $1.5 million per month average for the second quarter.
Financial services group WH Ireland (WHI:AIM) jumped close on 10% to 40.5p as it swung to its first half year profit in five years. Chief executive Phillip Wale insisted ‘the momentum we have seen in the first half, alongside a robust capital and cash position, gives us a strong platform for the second half.’
Flooring retailer United Carpets (UCG:AIM) surged more than 30% to 4.25p as its revenue showed signs of recovery since it reopened its 56 stores on 22 May. Like-for-like sales for the 19 weeks to 1 October rose 24%, meaning the company had recovered much of the ground lost during the UK’s national lockdown, when virtually no revenue was generated.
Advanced Oncotherapy (AVO:AIM), the developer of proton therapy systems for cancer treatment, slumped 8% to 34p after raising £7.7 million at a discounted price of 30p per share.
