Shooting up 15% in early deals FTSE 350 drug firm Indivior was a key feature in the market on Wednesday, whilst insurer Admiral Group Plc (LON:ADM) was the notable faller as it lost 8.5%.
The former, the Reckitt Benkiser spin-out, this morning revealed it had received positive initial results from a phase III study for a treatment for opioid drug addiction.
Having already received fast-track status from the US Food & Drug Administration Indivior hopes to get the new treatment out to market by the end of next year.
Admiral’s seemingly positive performance – including a record for first half turnover – belied the fact that statutory pre-tax profits missed the market’s high expectations (reported at £189.5mln versus analyst consensus forecasts for £191.8mln).
Question marks were also raised over the insurer's capital position and its underwriting.
The insurer nevertheless delivered ‘some of the best operating performances in the sector’ according to Nicholas Hyett, analyst at stockbroker Hargreaves Lansdown.
“However, that history of strong performance means that investor expectations are high, and with shares up 20% in the last three months even today’s results have not been enough to keep them from falling back,” Hyett added.
The FTSE 100 benchmark, meanwhile, edged about 10 points or 0.15% lower to 6,883.
On a macro level at least investors remain cautious ahead of an anticipated statement from the US Federal Reserve’s policy makers, investors remain in cautious mood.
There has been some suggestion that the Fed might hike interest rates in September.
Such a move may well dampen Wall Street’s summertime record breaking streak, potentially leading to lower equity valuations on both sides of the Atlantic.
WEDNESDAY'S LOSERS: Trafalgar New Homes, Xtract Resources, Rambler Metals & Mining
TOP RISERS: Hardide, Indivior, Newmark Security
FTSE 100 starts Wednesday's trading higher - 8:15am
The FTSE 100 rose 23 points this morning to 6,917.
The top winner was Antofagasta PLC (LON:ANTO) up 2% to 570p. Confidence returns after ‘turning point’ in Los Pelambres mine dispute.
The biggest loser was St James’s Place (LON:STJ), down more than 1.5% to 943.5p.
OIL & GAS: Highlands Natural Resources readies for drilling at Helios Two project
MINING: Drilling at BKM continues to "meet or exceed" expectations, Asiamet reports
RESULTS: Newmark Security maintains dividend, optimistic despite slow year
FTSE 100 seen slightly lower amid investor caution ahead of Fed - 6:55am
Ahead of tomorrow’s statement from the US Federal Reserve’s policy makers, investors remain in cautious mood.
There has been some suggestion that the Fed might hike interest rates in September.
Spread betting quotes point to the FTSE 100 opening around eight points down from last night’s close of 6,913.
US markets were soft overnight, with the Dow Jones giving up 84 points, or 0.5%, to close at 18,552 while the broader-based S&P 500 relinquished 12 points (0.6%) to finish at 2,178.
In Asia, the Nikkei 225 has bounced back from Monday’s shake-out; the Japanese benchmark was up 141 points, or 0.9%, at 16,737 in the last hour of trading.
In Hong Kong, the Hang Seng index was also on the up, rising 72 points to 22,983.
In the UK, the big corporate announcements are from construction contractor Balfour Beatty PLC (LON:BBY), car insurer Admiral Group PLC (LON:ADM) and car dealer Lookers PLC (LON:LOOK).
Stateside, updates are expected from retailers Target Corp, Staples Inc and Lowe’s Companies Inc, plus networking equipment giant Cisco Systems Inc.
Around the markets
- Oil – Brent crude for October delivery was trading 35 cents lower tis morning at US$48.88 per barrel, as traders await the weekly stockpiles update from the Energy Information Industry.
- Gold – The main futures contract was off 50 cents at US$1,350 an ounce.
- FX – After a good day against the greenback yesterday sterling was a tad less than 0.1% lower this morning at US$1.3037.
Headlines
- Fund managers to ditch UK. holdings over Brexit
- World’s biggest banks already plotting mass exodus from London after Brexit
- Care home rooms now cost more than £30,000 a year