14th Sep 2016 16:09
LONDON (Alliance News) - A late decline in oil prices caused UK equity indices to end mixed on Wednesday but the FTSE 100 index ended in positive terriority, supported by mining stocks.
The blue-chip index ended up 0.1%, or 7.68 points, at 6,673.31. The FTSE 250 ended down 0.2%, or 30.04 points, at 17,631.00 and the AIM All-Share closed up 0.1%, or 0.38 point, at 802.03.
Oil prices were turbulent towards the close of the London equity trading day after the US Energy Information said its crude oil inventories fell by 559,000 barrels in the week ending September 9. While this was better than the 3.8 million barrel increase expected by consensus estimates, it was a considerable slowdown from the 14.5 million barrel drawdown seen in the week prior.
At the London stock market close Brent crude was quoted at USD46.28 a barrel, lower than the USD47.22 seen at the end of trade on Tuesday.
The price of gold was largely flat from Tuesday. The metal was quoted at USD1,324.80 an ounce at the close Wednesday versus USD1,324.65 an ounce at the close Tuesday.
In European equities, the CAC 40 index in Paris was down 0.4% and the DAX 30 in Frankfurt closed down 0.1%.
On Wall Street at the London close, the Dow Jones Industrial Average was up 0.2%, the S&P 500 was up 0.3% and the Nasdaq Composite was up 0.7%.
On the London Stock Exchange, mining stocks dominated the best performers list in the FTSE 100. Anglo American closed as the biggest gainer, up 3.0%, Glencore closed up 2.5% and Antofagasta up 18%.
Jasper Lawler, market analyst at CMC Markets, said the miners were up due to data showing growth in money supply and bank loans in China. A report from the People's Bank of China showed the value of new loans in China grew to CNY948.7 billion in August from CNY463.8 billion in July and exceeded expectations of a rise to CNY750.0 billion.
Galliford Try said it had seen a return to growth in sales rates and prices since the Brexit vote, following a short-term decline, and hiked its dividend by 21% for its recent financial year to the end of June.
The FTSE 250-listed company said it saw a small increase in cancellation rates and a decline in visitor numbers in its housebuilding division Linden Homes following the UK's referendum on EU membership. However, Galliford said this was "broadly in line with normal seasonal patterns".
Galliford said customer interest "remains solid" and said the strength of underlying demand for new homes, the continuing availability of mortgage finance, and the Help-to-Buy scheme provided it with confidence.
The stock as the best mid-cap performer on Wednesday, closing up 7.4%.
Ocado Group once again ended as the worst FTSE 250 performer after it reported on Tuesday growth in sales in the 12 weeks ended August 7, but noted that it is seeing sustained and continued margin pressure as a result of a "very competitive" market, which it doesn't think will change in the short term.
On Wednesday the online grocery delivery company was cut to Underperform from Neutral by Exane BNP, and ended down 7.0%, following on from its 14% loss on Tuesday.
Shares in Sepura crashed 73% after the communications services provider warned on earnings for its full financial year, as it announced that its chief executive is taking an extended period of absence.
The company said order intake has been lower than it had expected in recent months due to delays in refresh opportunities in its Device business in a number of its key markets, mostly through budgetary pressures which are extending product lifecycles. In addition, key contract awards in its Systems business have also been delayed.
This will have a "significant impact" on full-year revenue, Sepura said, which means adjusted earnings before interest, tax, depreciation and amortisation could be 60% lower than its previous expectations.
In a separate statement, Sepura revealed that CEO Gordon Watling has received medical advice to take an immediate and extended period of absence, in order to recover fully from injuries sustained in an accident earlier in the year.
At the London stock market close, the euro traded the pound at USD1.1267, slightly higher than the USD1.1240 seen at the same time on Tuesday.
The pound traded the dollar at USD1.3200 at the London close Wednesday, versus USD1.3174 at the same time on Tuesday. The pound had a brief spike in the morning after the data from the Office for National Statistics showed UK unemployment rate held steady at 4.9% in the three months to July, in-line with expectations.
Average earnings including bonus rose 2.3% year-on-year in the three months to July, which was slightly faster than the 2.1% increase economists' had forecast. However, there was a rise in the claimant count by 2,400 persons month-on-month in August to 771,000 people, exceeding economists' prediction of a 1,800 increase.
The data is unlikely to change the Bank of England's monetary policy discussion as it prepares for its decision, which will be announced at noon on Thursday.
Also in the economic calendar on Thursday, UK retail sales for August are at 0930 BST and eurozone trade balances and inflation are at 1000 BST. At 1330 BST are the Empire state and Philadelphia Fed manufacturing indexes, US current account, retail sales, producer price index and continuing and jobless claims. US capacity utilization and industrial production is at 1415 BST.
The main events in the UK corporate calendar are interim results from clothing and homeware retailer Next and supermarket chain Wm Morrison Supermarkets. There are also interim results from annuities provider JRP Group, convenience store operator and wholesale retailer Booker Group, oil and gas company Ophir Energy and electronics distributor Premier Farnell.
Engineering consult Ricardo releases full-year results while estate agent Purplebricks Group releases a trading statement.
By Neil Thakrar; [email protected]; @NeilThakrar1
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