London shares closed firmer on Wednesday as mixed-to-downbeat manufacturing data was counterweighed by upbeat oil prices.
The UK's manufacturing output fell in July at its fastest pace in a year reportedly as factories called a halt on production immediately after the Brexit vote of June 23. However, industrial production rose 0.1% in July, which trumped expectations for a 0.2% decline.
The blue-chip FTSE 100 index was up 0.3% at 6,846 and led by tool hire firm Ashtead Group (LON:AHT) up 3.3% to 1,300p after the company hammered out a decent rise in revenues and earnings during the three months to July, as it continues to steer clear of the deep issues that have plagued its UK tool hire rivals.
Rental revenues rose 12% to £660.8mln, while pre-tax profit climbed 4% to £177.9mln. The company was boosted by a £17mln windfall from the post-Brexit vote plunge in the pound.
The results came after HSS Hire (LON:HSS), one of Ashtead’s UK rivals, suffered a share price slide after it remained entrenched in losses in the first half. HSS ended flat on Tuesday.
But with Brent Crude Oil up 1.3% to $47.89 it was no surprise that the second biggest gainer in the FTSE 100 was Royal Dutch Shell (LON:RDSB) up 1.9% to 1,976p.
The mid-cap FTSE 250 was also higher by 0.3% to 18,060 having dipped as low as 17,947 intraday. Vectura (LON:VEC) was the biggest riser of 12.8% to 143.2p.
The inhaled disease focused business Vectura raised expectations for 2016 as it said it is making progress with the June Skyepharma merger. The company raised revenue expectations for the nine month period ended 31 December, due to strong growth from its partnered marketed respiratory products.
The FTSE AIM 100 Index gained 0.3% to 3,798 while the FTSE AIM All-Share Index rose 0.5% to 801.
London gainers amounted to 36% versus 26% loser and 37% unchanged.
MID-SESSION
FTSE 100 turned a corner and was heading higher at lunch as traders shrugged of official data showing a decline in manufacturing output and the pound fell.
The UK's manufacturing output fell in July at its fastest pace in a year reportedly as factories called a halt on production immediately after the Brexit vote of June 23.
However, on the other hand, industrial production rose 0.1% in July, which trumped expecations for a 0.2% decline.
The manufacturing data caused sterling to slip against the dollar and Euro.
FTSE 100 is up 0.12% to 6,834, while in smaller caps, FTSE AIM 100 is up 0.35% at 3,800 and FTSE AIM All share added 0.41% to 801.010.
Later, BoE governor ark Carney sweats it out before a select committee discussing the inflation report of August 4. He will almost certainly be quizzed on the decision to lower interest rates on the last occasion, amid data which suggests the economy has not been too badly hit by the referendum vote.
Equipment rental giant Ashtead Group plc (LON:AHT) was still top riser on Footsie. Shares added 5.96% to 1,333p.
Elsewhere, engineer Weir Group PLC (LON:WEIR) added over 4% to 1,609p after broker Morgan Stanley upgraded the share to 'overweight' from 'equalweight' and repeated a target price of 2,000p.
Hargreaves Lansdown (LON:HL.) was up 0.22% to 1.353p, despite it reporting record annual results. The firm said its chief executive was stepping down.
Hargreaves said revenue, profit, assets under administration and active client numbers had risen to record levels in the year to the end of June, with assets topping £60bn for the first time.
In small caps, Futura Medical PLC (LON:FUM) shares skyrocketed over 109% to 59.75p as it told investors that a pivotal clinical trial of its gel for erectile dysfunction (ED) had been a resounding success.
Bezant Resources plc (LON:BZT) shares surged 44% as it struck a development deal for its near surface platinum and gold assets in Colombia, which could see initial recovery of the two metals in 2017.
OPEN
FTSE 100 was being outshone by smaller stocks in early deals, with the blue chip index down around three points to 6,829 at the time of writing.
FTSE AIM 100 is up 0.21% to 3,795, while the FTSE AIM All share is up 0.23% to 799.610.
By far and away the big gainer in small cap world was Futura Medical PLC (LON:FUM), which surged almost 72% to 49p each.
The group told investors that a pivotal clinical trial of its gel for erectile dysfunction (ED) had been a resounding success.
It means the company now has a differentiated product in a market worth US$5bn that is currently dominated by top-selling drugs such as Viagra and Cialis, which have limitations.
In big cap news, equipment rental giant Ashtead Group plc (LON:AHT) was top riser on Footsie. Shares added 6.36% to 1,338p.
Broker heavyweight JP Morgan upgraded the rating on the stock, with a target price of 1,340p.
The UK housebuilder euphoria continued, with today Barratt Development Holdings plc (LON:BDEV) reporting a 12.7% increase in revenue and 20.7% increase in pre-tax profit for the full year. Shares weighed however, and lost 1.38% in early deals to stand at 500p each.
Back to small caps and Windar Photonics PLC (LON:WPHO) rose over 20% to 74.5p as it received more orders for its light detection and Ranging (LiDAR) device from international wind turbine manufacturers.
Commodity shares were also on the up, with one of the satellite deposits surrounding its New Luika mine in Tanzania has seen a substantial increase in gold resources, miner Shanta Gold PLC (LON:SHG) reported. Shares gained 14.86% to 10.63p.
Underground exploration has increased indicated resources at the Ilunga deposit by 409% to 205,000 oz, while the total overall rises 336% to 258,000 oz.
Also on the up was Greatland Gold plc (LON:GPP), up over 6% to 0.26p as it revealed it was on site at the Ernest Giles gold project in Western Australia preparing drill locations and expects the drill bit to start turning within the next four weeks.
Savannah Resources (LON:SAV) nudged nearly 3% higher, as it said rock chip sampling at its lithium projects in Finland had returned “promising” anomalous lithium results. Solomon Gold plc (LON:SOLG) was up over 18% to 12.25p.
Risers and fallers, including Futura Medical and Windar Photonics https://t.co/MyGEN2AO0l via @proactive_uk
— Giles Gwinnett (@Gile74) September 7, 2016
It was a muted start for the FTSE 100 this morning, up just 1 point to 6,827.
The top winner was Ashtead Group plc (LON:AHT), up 3% to 1,296p. JP Morgan upgraded its rating for the equipment rental company, with a target price of 1,340p
Worldpay Group (LON:WPG) was the biggest loser, down 3.3% to 284.5p following a series of downgrades from brokers earlier this week.
Preview at 6.59am
London’s blue chips are set for a modest rally when trading gets underway after good gains overnight on Wall Street.
Financial spread bet firms see FTSE 100 adding around 20 points and reversing a good chunk of yesterday’s 53 point loss at 6,826.
US shares had a good day as prospects of an interest rate rise faded further. After last week’s below par non-farm payrolls number, The Institute for Supply Management’s non-manufacturing index fell to 51.4 in August from 55.5 in July.
It was the lowest reading since February 2010 and commentators said it should end any possibility of a rate rise at the 20-21 September meeting of US Federal Reserve.
Asian markets were mixed with gains in Shanghai overshadowed by falls in Hong Kong and Tokyo. The Nikkei was hit by another turbulent day for th Japanese yen.
CentralNic Group PLC (LON:CNIC) is likely to stick to its guns when the internet domain name firm reports half-year results on Wednesday.
The company, which acts as a wholesaler and technical partner to companies selling new internet domains, is unlikely to make significant changes to consensus numbers, according to broker Peel Hunt.
Its May update indicated that pre-tax underlying earnings rose 89% to £3.3m and, following the acquisition of Instra Group at the start of 2016, are forecast to increase 80% in the current year.
Sports Direct's AGM will make the day's headlines, though later in the day Apple is due to unveil its newest edition of the iPhone.
Commodities
West Texas crude oil : up 9c to US$44.92 per barrel
Gold: up US$1.8 to US$1,356 per oz
Silver: Flat at US$20.09 per oz
Newspaper headlines
London has retained its crown as the leading global city of opportunity and will remain a top destination for years to come despite the UK’s decision to leave the EU, according to PwC, reports the Telegraph.
Sports Direct’s most senior directors will on Wednesday face some of their company’s fiercest detractors, from union leaders who complain of abusive working practices to shareholders who object to what some have called the reckless use of their cash, writes the FT.
Apple will unveil its latest iPhone at a launch in San Francisco this evening (6pm UK time). It's being billed as the firm's most critical release ever, given last year's fall in phone sales as well as the potential of a multi-billion tax bill from the European Commission, reports the Times.
Lloyds Bank has topped the list of most complaints made in the first half of 2016 to the Financial Ombudsman Service (FOS), writes the Express.