25th Mar 2025 08:53
(Alliance News) - Stock prices in London opened in the green on Tuesday, driven by a slew of full-year results and ahead of UK Chancellor Rachel Reeves' spring statement on Wednesday.
The FTSE 100 index opened up 24.40 points, 0.3%, at 8,664.22. The FTSE 250 improved 69.80 points, 0.4%, at 19,992.23, and the AIM All-Share was 3.98 points higher, 0.6%, at 693.00.
The Cboe UK 100 was up 0.4% at 867.61, the Cboe UK 250 was 0.2% higher at 17,437.22, and the Cboe Small Companies was flat at 15,605.33.
The pound was quoted at USD1.2911 early on Tuesday in London, slipping from USD1.2918 at the equities close on Monday. The euro stood lower at USD1.0789, against USD1.0795.
Against the yen, the dollar was broadly flat at JPY150.58 compared to JPY150.56.
"The dollar index benefits from a broad-based rebound on relief – or fatigue – from the tariff talk. The EURUSD shortly retreated below the 1.08 mark yesterday despite a set of stronger-than-expected manufacturing PMI numbers from France and Germany thanks to the expectation of massive infrastructure and security spending, while services PMI came in lower than expected. But if we compare the two, manufacturing has a higher multiplier than the service-led spending, hence the latest PMI numbers are encouraging," commented Swissquote analyst Ipek Ozkardeskaya.
"Across the Channel, the numbers tell a different story. The contraction in the manufacturing activity accelerated while services expanded faster. British inflation and the spring budget announcement will be the biggest drivers of sterling later this week, and there is a chance that we see sterling softer by the end of the week than otherwise provided that Rachel Reeves has no choice but to cut her spending plans. The latter would be negative for UK growth expectations and sterling if the Bank of England doesn’t step in to compensate. And the BoE is not in a hurry to give support when global and trade uncertainties loom. In other words, the 1.30 resistance could be hard to clear for Cable, unless the US dollar experiences another selloff."
In European equities on Tuesday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was down marginally.
Fevertree Drinks opened 7.7% higher on Tuesday, as it upped its total dividend for 2024 to 16.97 pence per share, from 16.64p a year prior.
The carbonated drinks maker reported a 60% growth in pretax profit for 2024, to GBP35.5 million from GBP22.2 million, on a 1.1% rise in revenue to GBP368.5 million from GBP364.4 million. It also announced a GBP29 million extension to the share buyback programme launched in February, bringing the total shareholder return to up to GBP100 million.
The brand is "comfortable" with a market consensus of low-single-digit group revenue growth and an around 12% adjusted earnings before interest, tax, depreciation and amortisation margin for 2025.
Data analytics and consulting services provider FD Technologies surged 11% higher on Tuesday morning.
The firm in a trading statement said annual recurring revenue in its KX division has topped USD100 million for the first time during its financial year to date. KX is its real-time data analytics platform.
Full-year bookings growth also came in at the top end of its guidance range, FD Technologies added, to GBP18.0 million in annual contract value from GBP13.5 million the year before.
"We made significant strategic and operational progress in FY25. With accelerating ARR growth and better-than-expected operating leverage, KX delivered a strong performance based on good ongoing execution. We restructured our business to focus solely on KX, returned GBP120 million of value to shareholders, and ensured that KX is well capitalised to execute its strategy for growth and profitability," said FD Technologies Chief Executive Officer Seamus Keating.
On the other hand, Kingfisher led the FTSE 100's losers on Tuesday morning, down 11%.
The home improvement retailer reported a 35% decline in pretax profit for the year ended January 31, as sales for the year also tumbled 1.5%. Its total dividend remained unchanged at 12.40p per share, and the firm expects adjusted pretax profit between GBP480 million and GBP540 million for financial 2026, up 2.3% on-year at best from GBP528 million.
Kingfisher announced another share buyback programme for up to GBP300 million, further to its recently completed programme, also for GBP300 million. Kingfisher has now completed GBP900 in buybacks since September 2021, and the first tranche of its latest programme will begin "soon".
Galileo Resources plunged 17%.
The firm focused on copper, gold and lithium mine development in Zambia, Zimbabwe and Botswana announced the completion of the third phase of its drilling programme on the Shinganda Licence in Zambia, in which Galileo has a 75% stake.
Assay results, however, were "inconclusive in some areas due to poor diamond drill core and [reverse circulation] chip recoveries owing to unfavourable ground conditions". More than half of the Shinganda Splay structure remains undrilled, and Galileo notes that "sufficient work" has now been completed to warrant the launch of a phase four programme focused on the Main Fault target.
"The drill programmes have confirmed the presence of mineralised dilation zones confined to the hematite-rich lithological unit associated with the Shinganda Splay. A better understanding of the scale of mineralisation will in time require further drilling both along strike to pick up the individual mineralised lenses and to test the full extent of each dilation zone," said Chair & CEO Colin Bird.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.5%. In China, the Shanghai Composite was broadly flat, while the Hang Seng index in Hong Kong slipped 2.4%. The S&P/ASX 200 in Sydney closed 0.1% higher.
In the US on Monday, Wall Street ended in the green, with the Dow Jones Industrial Average up 1.4%, the S&P 500 up 1.8% and the Nasdaq Composite edging up 2.3%.
Brent oil was quoted higher at USD73.25 a barrel early in London on Tuesday, from USD72.98 late Monday. Gold was also quoted higher, at USD3,019.70 an ounce against USD3,011.44.
"Gold prices stabilized to some extent on Tuesday after a correction, as traders assessed geopolitical factors and evolving trade policies. In the Middle East, ongoing tensions continued to fuel safe-haven demand. Meanwhile, in Eastern Europe, hopes for a ceasefire weigh on gold. Diplomatic progress could dampen gold’s appeal while any setback in negotiations may reinforce demand for the precious metal," said Kudotrade analyst Konstantinos Chrysikos.
Still to come on Tuesday's economic calendar, the US house price index at 1300 GMT, and US new home sales, the US Richmond Fed manufacturing index and the US Conference Board consumer confidence readings at 1400 GMT.
By Emily Parsons, Alliance News reporter
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