logo-loader

FTSE 100 closes out Tuesday slightly higher

Last updated: 16:48 03 Nov 2015 GMT, First published: 13:11 03 Nov 2015 GMT

london_skyline_new

The FTSE 100 index ended an up-then-down session pretty much flat by the time London’s closing algorithms wound down.

London’s blue-chip benchmark ended up 12.45 points, just less than 0.2%, in positive territory at 6,374.

It, the somewhat meek rally, comes after New York trading got off to a decent start to Tuesday’s session.

Wall Street’s Dow Jones climbed was up about 85 points, 0.5%, at 17,915 while the S&P 500 gained 0.2% and the Nasdaq moved 0.25% higher.

Mid-Session Market Report

Top flight stocks gave up their gains on Tuesday on downbeat UK corporate and economic news.

The FTSE 100 Index, which had risen earlier after a strong performance by US stocks on Monday, subsided 6.12 points to 6355 by lunchtime.

Dealers lost heart after news of a £3.3bn rights issue at Standard Chartered (LON:STAN), which took a hit from the economic downturn in China and Asia.

Shares in Standard Chartered, which also announced 15,000 job losses and a third-quarter slip into the red, fell 64.2p to 649.4p.

On the economic front, commentators were expecting improved UK construction purchasing managers' index (PMI) data for October after the sector held back economic growth in the third quarter.

But the Markit/CIPS construction PMI fell to 58.8 in October from a seven-month high of 59.9 in September.

Samuel Tombs at economic researchers Pantheon Macroeconomics said low interest rates and high property prices will continue to stimulate the construction sector over the coming quarters.

But he added: "Construction output accounts for only 6% of GDP, so it isn’t going to prevent the overall recovery slowing as the fiscal squeeze intensifies and the stronger pound crimps exports."

Back in the markets, Associated British Foods (LON:ABF) dropped 25p to 3409p as the Primark owner reported lower annual profits.

Drug group Shire (LON:SHP) reversed 140p to 4745p after Monday's move to buy rival Dyax, although fresh rumours were circling about a possible acquisition of US hyperkalemia specialist ZS Pharma (NASDAQ:ZSPH).

Imperial Tobacco wafted 16p higher to 3513p as the maker of Lambert & Butler and Gauloises cigarettes boosted profits despite a hit from geo-political woe.

In small-caps, Providence Resources (LON:PVR) backtracked 0.38p to 21.25p despite winning a two-year extension to its standard exploration licence 1/11 in the North Celtic Sea basin off the south coast of Ireland.

Sirius Petroleum (LON:SRSP) pared gains to stand 0.01p off at 0.41p after securing consent to drill the proposed Ororo-2A well on the Ororo Field from the Department of Petroleum Resources in Nigeria.

Diamondcorp (LON:DCP) dimmed 0.38p to 8.25p on news of delays at its Lace diamond mine in the Free State province of South Africa.

Getech (LON:GTC) eased 6p to 37.5p as it warned that its financial performance in the current financial year would be substantially below market expectations.

But URU Metals (LON:URU) recovered 30% to 0.75p after the uranium explorer staged a £400,000 placing yesterday at 0.4p per share.

LONDON OPEN

London shares rose in early trading on Tuesday as a strong US close helped traders to shrug off downbeat corporate news.

The FTSE 100 Index increased 15.6 points to 6377 in the first hour of trading after the Dow Jones Industrial Average ended the session up 165 points.

Dealers stayed positive despite news of a £3.3bn rights issue at Standard Chartered (LON:STAN), which took a hit from the economic downturn in China and Asia.

Shares in Standard Chartered, which also announced 15,000 job losses and a third-quarter slip into the red, fell 33.8p to 679.8p.

On the economic front, commentators were expecting improved UK construction purchasing managers' index data for October after the sector held back economic growth in the third quarter.

Back in the markets, Associated British Foods (LON:ABF) dropped 26p to 3408p as the Primark owner reported lower annual profits.

Drug group Shire (LON:SHP) reversed 70p to 4815p after Monday's move to buy rival Dyax, although fresh rumours were circling about a possible acquisition of US hyperkalemia specialist ZS Pharma (NASDAQ:ZSPH).

Imperial Tobacco wafted 29p higher to 3526p as the maker of Lambert & Butler and Gauloises cigarettes boosted profits despite a hit from geo-political woe.

In small-caps, Providence Resources (LON:PVR) backtracked 0.38p to 21.25p despite winning a two-year extension to its standard exploration licence 1/11 in the North Celtic Sea basin off the south coast of Ireland.

Sirius Petroleum (LON:SRSP) lifted 1.19% to 0.42p after securing consent to drill the proposed Ororo-2A well on the Ororo Field from the Department of Petroleum Resources in Nigeria.

Diamondcorp (LON:DCP) sank 0.75p to 7.88p on news of delays at its Lace diamond mine in the Free State province of South Africa.

MARKET PREVIEW

Encouraged by yesterday's strong showing on Wall Street, the Footsie should get off to a flying start today.

Spread betting quotes point to the FTSE 100 opening at around 6,392, up 30 points on last night's close.

US indices had a bonanza day yesterday with the the Dow Jones Industrial Average up 165 points, 0.9%, to 17,829 while the S&P 500 added 1.2% at 2,104 and the Nasdaq moved 1.4% higher to 5,127.

A flurry of M&A activity provided many of Monday’s highlights Stateside, including the agreed bid for Dyax by Shire (LON:SHP), and the purchase of Visa Europe via a US$23.4bn (€21.2bn) deal by the firm;s US sister company, Visa Inc.

Towards the end of trading in Asia, the Hang Seng was up 240 points at 22,610.

Asia-focused London-listed bank Standard Chartered (LON:STAN) announced a significant restructuring that will involve job cuts and the closure of certain operations; it also plans to raise US$5.1bn through a rights issue on the basis of 2 for 7 at 465p a share.

Accesso's landmark deal with SEVEN marks strategic growth in the Saudi Market

Accesso Technology Group PLC (AIM:ACSO, OTC:LOQPF) chief executive Steve Brown joins Proactive's Stephen Gunnion with details of a significant partnership with Saudi Entertainment Ventures (SEVEN). Brown noted the collaboration highlights accesso's strategy to grow its global footprint,...

12 minutes ago