25th Jan 2023 09:08
(Alliance News) - Stock prices in London opened marginally higher on Wednesday, after figures showed producer price inflation is easing in the UK and following mixed markets in the US and Asia.
The FTSE 100 index opened up 5.21 points, 0.1%, at 7,762.57. The FTSE 250 was up 63.40 points, 0.3%, at 19,918.71, and the AIM All-Share was flat at 863.54.
The Cboe UK 100 was up 0.1% at 777.10, the Cboe UK 250 was up 0.5% at 17,440.94, and the Cboe Small Companies was up 0.3% at 14,039.29.
UK producer input prices rose by 16.5% annually in December, slowing from the 18.0% annual rise seen in November, according to the Office for National Statistics. On a monthly basis, input prices fell 1.1% in December, compared to a revised monthly fall of 0.2% in November.
Wednesday's PPI reading was an improvement on a more gloomy set of UK economic data on Tuesday.
UK public sector borrowing - excluding public sector banks - in the final month of 2022 reached its highest December figure since monthly records began in 1993, according figures released on Tuesday.
Borrowing hit GBP27.4 billion, which was GBP16.7 billion higher than the previous year, and GBP9.8 billion higher than the latest official forecast from the Office for Budget Responsibility.
Also out on Tuesday, the UK composite purchasing managers' index fell deeper into contraction territory in January to 47.8 points from 49.0 in December, according to the flash reading. The manufacturing PMI rose to 46.7 in January from 45.3 in December, but the services PMI fell to 48.0 from 49.9.
In European equities on Wednesday, the CAC 40 index in Paris was flat, while the DAX 40 in Frankfurt was down 0.1%.
The pound was quoted at USD1.2327 at early on Wednesday in London, firm on USD1.2323 at the equities close on Tuesday. The euro stood at USD1.0887, marginally up against USD1.0881. Against the yen, the dollar was trading at JPY130.25, up compared to JPY129.89.
In the FTSE 100, Mexico City-based gold and silver miner Fresnillo shed 1.2%, despite saying annual production was in line with its guidance.
Total silver production fell 3.0% year-on-year in the fourth quarter to 12.5 million ounces, but rose 1.2% annually in 2022 as a whole to 53.7 million ounces. Gold production was up 12% in the fourth quarter year-on-year, but fell 15% in 2022 overall.
"Silver output was driven by a strong performance from our Fresnillo mine which is showing consistent improvement and the continued contribution of our new Juanicipio project offsetting the expected lower grades at San Julian," the miner said.
In the FTSE 250, Ascential surged 25%.
The business-to-business media and events firm said it is proposing to separate its worldwide digital commerce assets into an independent US-listed company. It also proposed to sell WGSN, with its UK listing continuing as an events company.
In its trading update, Ascential reported double-digit revenue growth across all four of its segments in 2022.
Ascential now expects revenue to be at least GBP520 million, ahead of the top end of the current consensus range of GBP479 million to GBP516 million. Adjusted earnings before interest, tax, depreciation and amortisation is now expected at GBP118 million, which is also ahead of the top end of the current consensus range.
In 2021, Ascential brought in revenue GBP349 million and adjusted Ebitda of GBP89 million.
Luton Airport-based easyJet gained 8.7% in early trade.
In the low-cost airline's first quarter ended December 31, it reported a headline pretax loss of GBP133 million, narrowed from a GBP213 million loss a year earlier. Revenue improved by 83% to GBP1.47 billion, up from GBP805 million.
It noted that passenger numbers in the quarter improved by 47% annually.
Looking ahead, the easyJet said it expects to be beat current market pretax profit expectations of GBP126 million. In financial year 2022, the company reported a pretax loss of GBP208 million.
CMC Markets UK Chief Market Analyst Michael Hewson said: "Since falling to 10-year lows back in October, the easyJet share price has gone on a strong run higher in anticipation that 2023 will finally draw a line under three years of annual losses. The direction of travel is positive, with the shares already up over 40% year to date, but they are still well below the peaks we saw last year above 700p a share, and pre-pandemic when they were well over 1,200p, which means they have plenty of scope to soar further."
On AIM, t42 IoT Tracking Solutions gained 16%.
t42 is a Jersey-based real-time tracking, security, and monitoring solutions provider. It said it has received its first order of 1,000 Tetis units with a "leading global" client based in the US. The agreement provides for monthly payments over a 36 month period to cover both device and data costs.
Chief Executive Avi Hartmann said: "The promising start to 2023 continues through this order and demonstrates trust in our products and services. As part of the partnership, we look forward to working with this client in order to provide better visibility and control for supply chains globally and hope to receive further orders under the agreement in the coming months."
In Tokyo on Wednesday, the Nikkei 225 index closed up 0.4%. Markets in Shanghai and Hong Kong remained shut to mark Lunar New Year. The S&P/ASX 200 in Sydney closed down 0.3%.
In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average ending up 0.3%, whilst the S&P 500 was down 0.1% and the Nasdaq Composite down 0.3%.
Brent oil was quoted at USD85.96 a barrel at early in London on Wednesday down from USD88.82 late Tuesday. Gold was quoted at USD1,930.88 an ounce, flat on USD1,930.76.
By Sophie Rose, Alliance News reporter
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