29th Jan 2019 08:54
LONDON (Alliance News) - Stocks in London were mixed on Tuesday with the FTSE 100 higher amid weakness in the pound, while disappointing trading from PZ Cussons and Domino's Pizza weighed on the FTSE 250. The FTSE 100 was up 32.58 points, or 0.5%, at 6,779.68. The FTSE 250 was 20.02 points lower at 18,514.66. The AIM All-Share was down 0.2% at 909.47 points.The Cboe UK 100 was up 0.4% at 11,515.10 points. The Cboe UK 250 was 0.1% higher at 16,567.45 but the Cboe UK Small Companies flat at 11,210.25.In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were down 0.2% and 0.4% respectively in early trade.On the London Stock Exchange, Hargreaves Lansdown was the worst blue chip performer down 4.0% after the fund supermarket reported a drop in first half assets under management amid Brexit uncertainty. As of the end of December, the FTSE 100-listed company's assets under administration fell 6% to GBP85.9 billion from June 30. On a year-on-year basis, assets under administration declined 0.2%. However, Hargreaves Lansdown did achieve growth in client numbers, by 45,000 to 1.1 million, and net new business inflows were GBP2.5 billion, but this was down 24% year-on-year. Looking ahead, Brexit will continue to weigh on markets and consumer confidence until the uncertainty is resolved. In the FTSE 250, Intermediate Capital was the best performer, up 6.6% after the asset manager reported an upbeat third quarter performance.For the three months to December 31, total assets under management rose 5% to EUR35.2 billion and inflows in the third quarter were EUR1.9 billion. Year to date inflows amounted to EUR8.0 billion.The company also said recent market volatility had not hurt valuations and its fund performance remains strong.At the other end of the midcap index, PZ Cussons was the worst performer, down 11% after the soap and talcum powder maker said it will reduce its exposure to Nigeria, with "extremely challenging" trading continuing to hinder overall growth. The consumer products firm, which is behind Imperial Leather and many other personal care and home care brands, registered a 23% fall in revenue to GBP111.3 million in Africa for the six months to November. At constant currency, revenue slipped 13% and the like-for-like decline was also 13%.Adjusted operating profit in Africa slumped 71%, or 68% at constant currency, to just GBP1.2 million. Looking ahead, the company said its adjusted profit before tax for the full year is now expected to be towards GBP70 million driven by challenging conditions in Nigeria. PZ Cussons posted adjusted pretax profit of GBP80.1 million in its year ended May 2018. Domino's Pizza was down 9.5% after the pizza chain reduced its annual profit expectations following weaker international sales and business integration challenges in Norway.Domino's said it now expects underlying pretax profit to be at the lower end of the consensus range of GBP93.9 million and GBP98.2 million. In 2017, Domino's reported underlying pretax profit of GBP96.2 million.In mid-October, the company expected to deliver underlying pretax profit for 2018 in the middle of the range of market expectations of between GBP93.0 million and GBP99.6 million.In its international business, Domino's said it plans to invest in central functions and infrastructure to support much bigger businesses, but noted this would hurt profitability in the short term.The pound was lower, quoted at USD1.3152 Tuesday against USD1.3161 at the London equities close Monday. May faces a crucial day in the Commons that could carve the shape of Brexit, with fewer than 60 days remaining until the UK is due to leave the EU.Amid an ongoing revolt among backbenchers and her DUP allies, May has swung behind a motion amendment that would allow her to go back to Brussels and seek changes to the Irish border backstop.She will whip members of Parliament to support the amendment tabled by 1922 Committee chairman Graham Brady, which states that Parliament would be willing to support the Withdrawal Agreement reached with the EU if "alternative arrangements" were found to avoid a hard border.The dramatic move is far from guaranteed to deliver a majority for the plan after it failed to win the support of the influential European Research Group of Conservative eurosceptics, who have not ruled out voting against it."This is one of at least ten amendments that could be selected by the Speaker of the House of Commons to be debated in the next 24 hours, as MPs try and arrive at a common position that carries a majority. This lack of coherence and consensus has resulted in a little sterling weakness in the last 24 hours," said CMC Markets Chief Market Analyst Michael Hewson.In addition, a move by former Labour Party minister Yvette Cooper, supported by Tories such as Nick Boles, calls for a vote on a Bill that would give Parliament control over the Brexit process if May fails to secure a deal by February 26.It will be down to House of Commons Speaker John Bercow which proposals are selected for a vote later on Tuesday. The Japanese Nikkei 225 index closed up 0.1%. In China, the Shanghai Composite closed down 0.1%, while the Hang Seng index in Hong Kong closed down 0.2%.Trade worries also resurfaced after the US Department of Justice revealed sweeping criminal charges against Chinese tech giant Huawei and its Chief Financial Officer Meng Wanzhou.Asian stocks were broadly lower as investors looked ahead to a fresh round of US-China trade talks and the start of the Federal Open Market Committee meeting later on Tuesday and into Wednesday.In the US earnings calendar Post-It note maker 3M and drugmaker Pfizer will report earnings before the market open in New York, while iPhone maker Apple will report after the market close. Still to come in the economic calendar Tuesday is Italian producer prices index figures at 0900 GMT.
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