Direct Line, Greggs and Rolls Royce Make Gains

Tue, 1st Aug 2017

The FTSE 100 got off to a strong start this morning, with Direct Kline opening the day up by more than six percent after increasing its interim dividend by 39 percent. Other strong performers included Rolls Royce, which reversed a difficult start to the week, gaining 3.9 percent after a morning which saw its profits increase by 150 percent during the first half of the year.

Meanwhile, Greggs is up by two percent, thanks to increasing first-half sales, which it attributes to the addition of healthy food options such as salad and granola to its menu.

Centrica was another major mover, gaining 2.5 percent after it announced that it would be increasing its standard tariff electricity prices by 12.5 percent. The oil giant BP gained 2 percent, after it confirmed that it had beat its earnings forecasts for the second quarter, and Taylor Wimpey gained 2.5 percent also, as investors saw reason to be comforted by the very positive trading environment that the housebuilder is operating in. The company has seen its profits take a hit over the last several months, as it was forced to pay out £130 million to homeowners that were hit by the leasehold scandal, but this is just an anomaly in what could otherwise be a period of stable trading, so investors do not see any reason for concern about the company’s prospects going forward. It is possible, however, that Brexit could hit house prices in the near future.

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