27th Sep 2018 17:03
LONDON (Alliance News) - Stocks in London ended mixed on Thursday, as the FTSE 100 prospered from weakness in the pound which depreciated against the dollar in the wake of the US Federal Reserve's triennial interest rate hike of 2018. The FTSE 100 index closed up 0.5%, or 33.95 points at 7,545.44. The FTSE 250 ended down 0.3%, or 62.27 points, at 20,374.21, and the AIM All-Share closed down 0.5%, or 5.73 points, at 1,096.21.The Cboe UK 100 ended up 0.5% at 12,807.55, the Cboe 250 closed down 0.3% at 18,523.86, and the Cboe Small Companies ended 0.2% lower at 12,175.27.In Paris the CAC 40 ended up 0.5%, while the DAX 30 in Frankfurt ended up 0.4%. "European markets are pushing higher as the FOMC-fuelled dollar rebound helps devalue European currencies. Yesterday's rate rise from the Fed may not have come as a surprise, yet the fact that we are looking for another four hikes by the end of 2019 provides plenty of reasoning to keep buying the dollar," said IG market analyst Joshua Mahony.The pound was down quoted at USD1.3096 at the London equities close, compared to USD1.3175 at the close Wednesday, as the dollar appreciated following hawkish tones from the US Federal Reserve.The US central bank on Wednesday raised interest rates by 25 basis points and hinted at another rate hike this year and three more in 2019.Chairman Jerome Powell also said it is not in the Fed's forecasts to see inflation surprise to the upside when asked about what could lead the central bank to raise rates faster than currently anticipated.On the London Stock Exchange, Centrica ended as the best blue chip performer, up 2.9% despite the UK Office of Gas & Electricity Markets saying it wants energy suppliers to produce improved plans on how to deal with complaints.The UK energy regulator said it opened the three cases - into First Utility, Ovo Energy and Utilita - over the companies' "poor handling of customer complaints" after carrying out its bi-yearly complaints handling survey.As a result of the survey, Ofgem is requiring the remaining seven energy suppliers - Centrica's British Gas, SSE, EDF, Npower, Utility Warehouse, E-ON and Co-operative Energy - to provide plans for improving how they will deal with complaints and provide appropriate updates."While the regulator told the firm to improve in this area and come up with plans to improve complaint handling it stopped short of opening a compliance case, like it has against rivals. Increased regulatory oversight may well help Centrica going forward, especially if it can position itself towards the better end of a bad bunch," said XTB chief market analyst David Cheetham.TUI Group ended up 2.5% after the Anglo-German travel operator said overall trading is in line with expectations for the current year, but it doubled the estimated currency impact on its results from the woes of the Turkish lira. TUI reiterated its guidance of a 10% minimum growth in its earnings before interest, taxation, depreciation and amortisation. In addition, the company intends to deliver an additional 60 hotel openings by the end of its 2019 financial year and launch three cruise ships.The FTSE 100 travel stock fared far better than its midcap rival Thomas Cook which earlier in the week warned growth in full year underlying operating profit would be at the lower end of market expectations."By contrast with Thomas Cook, TUI has come through the summer well, it seems. This kind of visibility will be welcomed by investors given that Thomas Cook's future still looks uncertain at best. TUI's relatively low valuation should mean today's update provides a foundation for some gains in the near term," said IG chief market analyst Chris Beauchamp.Halma closed up 2.5% after the health and safety sensor maker said it has made good progress since April, in line with management's expectations. All of Halma's units delivered organic constant currency revenue and profit growth, with order intake ahead of the same period last year. At the other end of the large cap index, Carnival ended as the worst performer, down 5.2% after the cruise line operator reported revenue growth in the third quarter, but said its annual earnings are expected to take a hit from unfavourable fuel prices. The company said net income for the three months to the end of August totalled USD1.71 billion, up from USD1.33 billion reported a year earlier as revenue grew to USD5.84 billion from USD5.52 billion. Looking forward, the FTSE 100 constituent said it now expects adjusted earnings per share to be between USD0.65 and USD0.69 in the final quarter of 2018, up from USD0.63 reported a year ago."Changes in fuel prices (including realized fuel derivatives) and currency exchange rates are expected to decrease earnings by USD0.06 per share compared to June guidance and USD0.18 per share compared to the prior year," the company said. DCC closed down 4.2% after the Irish distribution group made a Canadian acquisition and set out to raise new capital by placing up to 8.9 million new ordinary shares through an accelerated bookbuild process.The company placed 8.9 million new ordinary shares at a price of 6,800 pence per share, raising gross proceeds of GBP606 million. The placing price represents a discount of 1.5% to the intra-day price on Thursday.DCC said it bought Montreal, Canada-based audio and musical instruments sector focused sales, marketing and services business Jam Group of Companies for USD170 million, or around GBP130 million.In the FTSE 250, Entertainment One ended as the best performer, up 9.1% after the Canadian media production group said trading over the first half of its financial year has been in line with expectations, as it backed its annual outlook. Family & Brands continued to perform well in the period to September 30, driven by ongoing consumer product roll-outs. Within the division, children's TV show Peppa Pig remained strong in its core markets, with additional new episodes to be delivered in spring 2019 to support licensing activities. In Film & Television, new scripted and unscripted television series were delivered during the period with a "robust" pipeline of new series ahead.At the other end of the midcap index, 888 Holdings ended as the worst performer, down 15% despite recording pretax profit of GBP60 million for the six months to the end of June, compared with a loss of GBP17.3 million in the year ago period, on a revenue that rose to GBP283.9 million from GBP270.1 million.The company recorded exceptional gain of USD12 million in the first half. This followed the release of provisions after assessments in respect of a legacy tax issue in Germany. In the first half of 2017, the company had taken an exceptional charge of GBP50.8 million for the same German tax issue.Indivior closed down 13% as shares continued their free fall after the opioid addiction treatment slashed its sales guidance for its blockbuster opioid addiction treatment Sublocade late Wednesday. Indivior expects net revenue for 2018 in the range of USD990 million to USD1.02 billion, down from the previous guidance of USD1.13 billion to USD1.17 billion. Indivior has struggled to retain US market share, after rival Indian firm Dr Reddy's Laboratories developed a cheaper, generic alternative to its opioid addiction treatment Suboxone film earlier this year. The stock closed down 16% on Wednesday. In domestic political news, Foreign Secretary Jeremy Hunt appealed for calm over the current Brexit impasse saying there was always going to come a point in negotiations "where everyone was looking into the abyss".Hunt made the comment as he urged the EU to get serious and give proper consideration to Prime Minister Theresa May's Chequers exit plan.The foreign secretary, speaking to Sky News ahead of a UN meeting with fellow diplomats, said: "Negotiations require two parties to engage seriously, that hasn't been happening and Britain is not going to keep coming back with more.In a show of solidarity, Hunt also batted off suggestions May was humiliated at the Salzburg summit, where EU leaders publicly rebuffed her plans.The euro was lower at USD1.1669 at the European equities close, against USD1.1750 late Wednesday, despite robust inflation data from Germany.Germany's consumer price inflation accelerated more-than-expected in September to its highest level in nearly seven years, initial estimates from the Federal Statistical Office showed Thursday.The consumer price index rose 2.3% year-on-year following a 2% increase, each in July and August. Economists had expected the rate to remain unchanged. The latest CPI inflation rate was the highest since November 2011, when it was 2.4%. Headline inflation has held above the European Central Bank's "below, but close to 2%" target for five months in a row. Earlier this week, European Central Bank President Mario Draghi warned that the underlying inflation in the euro area is likely to see a relatively vigorous pick-up in underlying inflation. The hot and dry weather was largely to blame for the pick-up in inflation.Stocks in New York were higher at the London equities close. The DJIA was up 0.5%, the S&P 500 index up 0.6% and the Nasdaq Composite up 0.9%.In economic news, a report released by the Commerce Department showed the pace of US economic growth in the second quarter was unrevised from the previous estimate.The report said gross domestic product increased at an annual rate of 4.2% in the second quarter, unchanged from the estimate released last month. The unrevised growth also matched economist estimates.The unrevised reading on GDP growth came as a downward revision to private inventory investment was offset by small upward revisions to state and local government spending, consumer spending, non-residential fixed investment, exports, and residential fixed investment.The GDP growth in the second quarter reflects a substantial acceleration from the 2.2% increase in the first quarter and marks the strongest growth since a 4.9% jump in the third quarter of 2014.Brent oil was firm quoted at USD81.77 a barrel at the London equities close from USD81.52 at the close Wednesday. Gold was down quoted at USD1,183.00 an ounce at the London equities close against USD1,194.20 late Wednesday, amid strength in the greenback. The economic events calendar on Friday has Japan unemployment and industrial production data at 0050 BST, China manufacturing PMI at 0245 BST, inflation readings from France at 0745 BST, UK second quarter GDP figures at 0930 BST and eurozone inflation data at 1000 BST. In the afternoon there is core personal consumption expenditures data, which is the Fed's preferred inflation measure, at 1330 BST. The UK corporate calendar on Friday has trading statements from water company United Utilities and budget airline easyJet.Related Shares:
HalmaEntertainment OneCentricaCarnivalDCCIndivior888.LTUI.L