18th Apr 2019 12:00
LONDON (Alliance News) - Stocks in London were in the red midday Thursday, tracking Asian equity markets lower ahead of the long Easter weekend.The FTSE 100 index was down 0.2%, or 14.93 points, at 7,456.39. The FTSE 250 was down 0.3%, or 64.21 points, at 19,793.44, and the AIM All-Share was down 0.1%, or 0.72 points, at 956.78.The Cboe UK 100 index was down 0.2% at 12,654.21. The Cboe UK 250 was down 0.4% at 17,722.80, and the Cboe UK Small Companies was up 0.2% at 11,450.88."The FTSE 100 has started in negative territory taking its cue from a weakening in Asian markets and a subdued close on Wall Street yesterday. The volumes are thinner than usual as traders prepare for a four-day Easter weekend which will see markets reopen on Tuesday," said City Index analyst Fiona Cincotta. The Japanese Nikkei 225 index ended 0.8% lower Thursday. In China, the Shanghai Composite closed off 0.4%, while the Hang Seng index in Hong Kong closed down 0.5%.In the FTSE 100, Unilever was the best performer, up 3.1% after the Anglo-Dutch consumer goods giant reported strong underlying sales growth in the first quarter and raised its quarterly dividend. For the quarter, underlying sales growth was 3.1%, with 1.2% attributed to volume and 1.9% to price. Underlying sales growth excludes any change in revenue resulting from acquisitions, disposals, and currency changes. Price growth from countries with extreme consumer price inflation, such as Venezuela and Argentina, is also excluded.Unilever also upped its quarterly dividend to EUR0.4104 per share, a 6.0% rise from its EUR0.3872 dividend for the same quarter of 2018.Looking ahead for 2019 as a whole, the company expects to report underlying sales growth in the lower half of its 3% to 5% range."Investors will be pleased with the increase in the quarterly dividend, but will be hoping the company can boost sales growth in the future; something analysts have been increasingly concerned about," said the Share Centre. Rentokil Initial was up 1.7% after the pest control firm reported revenue growth in the first quarter of 2019 as a result of acquisitions and robust organic growth from its Hygiene and Pest Control units. The company's revenue was up at GBP607.4 million for the three months to March 31 from GBP550.7 million the year before. This represents a 10% rise at actual exchange rates and an 8.6% rise at constant currency. Rentokil's ongoing revenue for the period was up to GBP603.6 million from GBP545.9 million, up 11% at actual exchange rates and 8.9% at constant currency. Rentokil's ongoing revenue represents the performance of its continuing operations after removing the effect of closed or disposed businesses. In its first quarter, Rentokil agreed eight acquisitions, of which four were in Pest Control and four were in Hygiene.Equipment-rental company Ashtead rose 2.1% after US peer United Rentals, posted a better-than-expected first-quarter profit on Wednesday.At the other end of the large cap index, BAE Systems was the worst performer, down 3.3% after the stock went ex-dividend - meaning new buyers no longer qualify for the latest payout. In the FTSE 250, Moneysupermarket.com was the best performer, up 7.8% after the price comparison website reported an increase in revenue for the first quarter of the year on the back of a "strong trading performance".For the three months to March 31, revenue rose 19% to GBP104.9 million from GBP88.3 million a year ago. The outlook for the remainder of the year is unchanged and the board is confident of meeting market expectations, Moneysupermarket said.At the other end of the midcaps, Drax Group and Hastings Group were both down 4.7% after going ex-dividend. The pound was quoted at USD1.3004 at midday, down from USD1.3045 at the London equities close Thursday, despite positive UK retail sales data.UK retail sales surged in March compared with a year earlier as milder weather boosted both the volume and value of transactions, data from the Office of National Statistics showed. Figures covering the five-week period between February 24 and March 30, showed the volume of retail sales up 6.7% March 2018, while the value of transactions jumped 7.3%. A number of stores noted the milder weather registered in March 2019 helped to boost sales, especially in comparison with the "Beast from the East" which hit the UK in March 2018, the ONS said. Department stores were the only store type to report a decrease in the quantity bought when compared with March 2018, with a fall of 0.3%. March retail sales also showed an increase on February figures, both in volume and value, rising 1.1% and 1.2% respectively on the previous month. Food stores and non-store retailing provided the "largest contributions" to this month-on-month growth, the ONS said.In Paris, the CAC 40 was up 0.4%, while the DAX 30 in Frankfurt was up 0.5%. Most European markets will remain closed on Friday and Monday for the Easter holiday.The euro stood at USD1.1251, down from USD1.1298 at the European equities close Thursday, following disappointing PMI data from the continent. The pace of eurozone economic growth slowed for a second successive month in April, according to flash PMI survey data released by IHS Markit.The IHS Markit Eurozone PMI Composite index hit a three-month low of 51.3 in April from 51.6 in March.Services PMI fell to 52.5 from 53.3 in March, manufacturing PMI rose to 47.8 from 47.5, while manufacturing output PMI increased to 48.1 from 47.2.New order growth picked up only marginally, remaining close to stagnant, according to IHS Markit. New export orders fell sharply, down for a seventh straight month to continue the worst period of export performance since comparable data covering both goods and services were first available in 2014."April is the cruellest month, full of false hope - and so it is for the ECB and Mario Draghi they look in vain for signs of a recovery in the European economy. What is clear from today's PMI numbers is there are as yet no green shoots of spring for the Eurozone. Manufacturing remains on the floor, offset to a degree by a healthier services sector which is now also showing signs of malady," said Markets.com analyst Neil Wilson. Stocks in New York were set for a lower open, with credit card company American Express, oilfield services firm Schlumberger, and tobacco firm Philip Morris International releasing earnings before the market open in New York. The DJIA and the S&P 500 index were called down 0.1% and the Nasdaq Composite down 0.2%.Ahead, two high-profile companies get set to make their stock market debuts on Thursday. Online image-sharing website Pinterest is set to launch on the New York Stock Exchange, with shares in its initial public offering priced at USD19 each. The offering of 75,000 shares, which were priced slightly higher than expected due to investor demand, raised USD1.43 billion and valued the company at USD10 billion. Despite failing to make a profit, the start-up, founded in 2010, has attracted investors with high rates of growth. In 2018, revenue increased by 60% to USD750 million while net losses narrowed to USD63 million from USD130 million. At the end of last year the beloved social media platform, which makes money mainly from advertising, had 265 million active users. In addition, video-conferencing company Zoom is also set to launch on the Nasdaq stock exchange on Thursday. Interest in its IPO was similarly high, according to US media reports, with shares set to start trading at USD36 each - valuing the company at USD9.2 billion.
Related Shares:
UnileverBAE SystemsHSTG.LRentokil InitialDraxMoneysupermarket.ComAshtead Group