By midday London’s FTSE 100 advanced ahead of tomorrow’s EU referendum, despite a back-n-forth morning.
Standing at 6,268 the blue-chip stock index was up 41.5 points or 0.67%.
The polling and guessing games are now drawing to a close ahead of tomorrow’s EU referendum, and whilst the FTSE 100 points higher the only discernible analysis boils down to a feeling that the referendum is too close to call.
Holger Schmieding, chief economist at Berenberg Bank, says most opinion polls have shifted narrowly in favour of remaining in the EU, though he acknowledges that the pre-Europe lead isn’t ‘clearly outside’ the potential margin of error of such polls.
“Taking the polls at face value, the UK will dodge the Brexit bullet tomorrow with a small lead of about two percentage points for ‘remain’ according to our weighted average of poll data,” Schmieding said in a note.
He added: “Of course, the volatility in the various Brexit risk metrics in the past months warrants a significant degree of caution.
“Also, it can be particularly difficult for polls to project the outcome of an unprecedented vote such as the Brexit referendum. The Brexit risk thus remains real.”
Schmieding reckons ‘swing’ voters and young people will probably determine the final outcome.
FTSE 100 flat as EU referendum looms - 10:00am
London’s FTSE 100 flattened out by mid-morning, despite starting Wednesday’s session positively.
Standing at 6,231, up 5 points or 0.08%, the blue-chip benchmark was a sliver higher at 10:00am.
Shares in department store Debenhams Plc fell around 5% to 70.55p after it cautioned the UK trading environment has been weaker since the New Year period. Clothing sales have been particularly affected, it added.
In the third quarter, the group saw total sales growth of 0.5%, down from the 1.6% seen at the end of the first half, Debenhams revealed.
“Debenhams has become the latest casualty of poor conditions in the UK clothing market, with falling sales showing how difficult it is for retailers on the high street,” said George Salmon, equity analyst at Hargreaves Lansdown.
TOP RISERS: Mirada Plc, Cap-XX
BIGGEST LOSERS: Lansdowne Oil & Gas, Hornby Plc
Primark owner Associated British Food Plc (LON:ABF) and Marks & Spencer Group (LON:MKS) followed Debenhams lower, falling 3% and 1.1% respectively.
Housebuilders were among the top risers. Taylor Wimpey PLC (LON:TW.) rose 2.53% while Persimmon (LON:PSN) gained almost 2%.
In the small cap market digital TV services provider Mirada Plc (LON:MIRA) was a notable gainer, rising over 23% to 5.25p as it launched the full commercial roll-out of Iris, a multi-screen solution for Mexico's izzi Telecom.
It will be accompanied by an extensive marketing campaign by izzi Telecom and subscribers will be able to take the new services via izzi’s distribution channels from July 4 this year.
The FTSE AIM 100 shed 0.08% to 3,410 , while FTSE AIM All share lost 0.09% to 720.5.
Oilex (LON:OEX), among other junior oilers, was giving the minnows a boost as it was top London riser- adding almost 28% to 0.58p.
Tethys PLC (LON:TPL) was also up, gaining 8.33% to 1.63p.
Elsewhere, Providence Resources PLC (LON:PVR) told investors it was raising up to US$76.6mln through a share placing and open offer that will secure the Irish oil firm’s financial future and allow it to drill in the increasingly high profile Atlantic margin. The shares shed 5.45% to 13p, which is a penny above the 12p placing price.
Ithaca Energy Inc (LON:IAE) shares rose over 3% to 67p a pop after the North Sea oil firm gave an update on its development of the Greater Stella Area (GSA) project.
A floating production facility being built by Petrofac, is now well advanced and the vessel is due for ‘sail-away’ from a Polish shipyard either at the end of this month or early in July. The oil firm also revealed that it had now secured access to a major oil export pipeline for future production from the GSA operation, and that will allow a switch from an initial tanker loading operation during 2017.
Wealth management firm European Wealth Group Ltd (LON:EWG) nudged 1.85% lower despite it seeing funds under management rise to £1.2bn by the end of 2015 from £1.0bn a year earlier - wheras over the same period, the FTSE All Share index fell by 2.49%.
Revenue rose to £7.65mln in 2015 from £5.58mln in 2014, with income from trading activities up by two-thirds from £4.65mln in 2014, reflecting a full year of trading as well as organic growth, growth from acquisitions and growth from attracting additional revenue generating staff. The company also revealed that recurring revenue increased to 63% from 45% in 2014.
SNAPSHOT: FTSE opens on front foot, up 30 points - 8:15am
The FTSE 100 opened almost 30 points higher at 6,256, up almost 0.5%, as expected as the equity market nears the big vote tomorrow.
The top winner was Provident Financial (LON:PFG) up 44p or 1.6% to 2,809p.
The biggest loser was Associated British Foods (LON:ABF) down 52p or just under 2% to 2,849p.
FTSE PREVIEW: London stocks seen slightly higher - 7:00am
London’s FTSE 100 is set to start Wednesday ever so slightly higher as the equity market moves into the eye of the EU referendum campaigning storm.
With just a day left until the voting starts the referendum is seemingly too close to call.
Volatility of recent days may now be giving way to inactivity, at least for the time being, until clearer indications emerge.
“While the opinion polls continue to remain mixed with respect to the UK referendum, equity markets appear to be sailing on serenely as we lead up to tomorrow’s vote, and we mercifully enter the final day of campaigning,” said Michael Hewson analyst at CMC Markets.
He added that the British pound rose to set a ‘multi month’ high against the US dollar, before ‘slipping back a touch’.
More indicative polls are due later, and could potential sway markets as the day progress.
But, as Hewson points out: “We will know soon enough if the recent market exuberance at the expense of the deadlocked polls is justified, or turns out to be a fool’s errand.”
In the US, the Federal Reserve chair was able to take some attention of European uncertainties.
Janet Yellen commented that the Fed’s cautious approach remains appropriate, and suggested leeway regards American employment data showing a slowing labour market – ‘it is important not to overreact’, she said.
Yellen did, however, warn that a British vote to leave the EU would have significant economic repercussions.
The Dow Jones ended Tuesday up 25 points, 0.14%, at 17,829 while the S&P 500 added 0.27% to 2,088 and the Nasdaq rose 0.14% to 4,843.
The Nikkei was the exception in Asian equities markets, with the Japanese benchmark dropping 0.75% to 16,047.
Hong Kong’s Hang Seng climbed 0.4% to 20,748, while the Shanghai Composite added 0.36% to 2,889.
Australia’s ASX 200 gained 0.23% to 5,285.
Oil prices were in positive territory, above US$50. Brent crude was up 0.37% at US$50.84, while WTI futures gained 0.27% to US$50.10. The gold price was down 0.6% at US$1,262.
In London, spreadbetting and CFD group IG Markets sees the FTSE 100 starting higher as about an hour before the open it called the benchmark at 6,255 to 6,260.