-- Market close update --
FTSE 100 closes up 0.1% at 7253
Top riser Bunzl (LON:BNZL) up 3.4% at 2245p
Second top rise CRH (LON:CRH) up 2.9% at 2744p
FTSE 250 ends up 0.4% at 18,671
Top FTSE 250 riser Rotork plc (LON:ROR) up 4.4% at 246.2p
FTSE AIM 100 closes up 0.2% at 4,361
Top FTSE AIM 100 riser Quartix Holdings plc (QTX) up 13.9% at 370p
FTSE AIM All-Share ends flat at 908
Pound falls 0.4% against the US dollar to $1.2412
Sterling drops 0.7% against the euro to 1.1724 euros
---
Late trading
The FTSE 100 has held onto early gains, as a rally in Bunzl and Unilever have offset declines in the motor insurance sector.
The blue chip index got off to strong start this morning, adding almost 40 points within the first five minutes of trading, but has cooled since with a 14 points rise to 7,257.
Distribution and outsourcing group Bunzl PLC (LON:BNZL) was among the biggest risers after posting an increase in revenues, profits and the dividend in its full-year results.
Shares in Unilever plc (LON:ULVR) gained following reports the consumer giant's shareholders are prepared to support a demerger of its food operations after its rejection of Kraft Heinz's £115bn takeover offer a week ago.
One of the UK’s biggest housebuilders Persimmon PLC (LON:PSN) was slightly higher after reporting an increase in full year pre-tax profits as revenues were supported by rising house prices and continued demand for homes.
On the downside, motor insurers revved lower after the Lord Chancellor announced a cut to the discount rate used by courts in England and Wales to calculate personal injury damages awards.
Among the fallers were Direct Line Insurance Group PLC (LON:DLG) and Admiral Group PLC (LON:ADM) and Aviva PLC (LON:AV.).
As Admiral put it, the net result is the reduction in the Ogen discount rate will have “the effect of increasing the cost of personal injury claims, therefore also increasing the ultimate loss ratio for all business written up to the effective date, part of which will be earned and part unearned.”
Admiral said it will take a big one-off hit to account for the impact.
Direct Line has estimated the cut will reduce profits by as much as £230mln.
As usual, the costs will be passed down to the consumers (you and I) with industry experts suggesting that today’s ruling could increase insurance premiums by £75 a year.
Elsewhere, doubt has been cast on the proposed £24.5bn merger of the London Stock Exchange and Deutsche Boerse, sending shares in the two bourses lower.
The deal could collapse, according to the LSE, which said the merger was unlikely to be approved by the European Commission.
On the FTSE 250, KAZ Minerals PLC (LON:KAZ) was sharply lower – down more than 4% - in the afternoon, after HSBC downgraded the stock to 'reduce' from 'hold' and lowered the target price to 400p from 440p.
Dechra Pharaceuticals plc (LON:DPH) advanced after reporting a jump in underlying earnings and revenue in the first half, boosted by new products and a strong performance of recent acquisitions.
10.15am...FTSE 100 ignores Admiral car crash to make positive start
The FTSE 100 started the day brightly and ignoring the fall-out from the earnings alert from insurer Admiral PLC (LON:ADM).
At 8.35am, the index of blue-chip shares was up just over 14 points at 7,258.
The impact of one-off charges was blamed for the below-par showing from Admiral, which fell 9%in early trade.
Direct Line (LON:DLG) and Aviva (LON:AV.) were dragged down in its wake.
Unilever’s (LON:ULVR) reinvention plans – which leaked out over the weekend – received a muted, but positive response with the stock up 1.5%.
Builder Persimmon’s (LON:PSN) prelims seem to pass muster as the stock was marked 1.4% higher early on.
Dropping down to the small-caps, driver tracking firm Quartix Holdings (LON:QTX) was up 5.5% after a solid set of annual results, which included a bumper dividend payment.
Proactive news headlines
Blur Group PLC (LON:BLUR) revealed the top 100 UK lawyer that signed up for its platform earlier this month has listed its first project. It's a six-figure (dollar) programme of records management and archiving services.
LGO Energy PLC (LON:LGO) expects to start new drilling operations in Trinidad within the next week. First to be drilled will be the GY-682 well which is expected to go straight into production. Shares rose 8% to 0.122p.
Union Jack Oil PLC (LON:UJO) has raised £1.4mln in a placing and plans to increase holdings in existing onshore UK projects. Shares fell 11% to 0.142p.
Petropavlovsk PLC (LON:POG) was steady after an update on IRC, in which Petropavlovsk holds a 31.1% interest in, showed the iron producer is making “steady progress” both operationally and financially.
6.45am...positive start predicted
The FTSE looks likely to open its weekly account in positive territory, taking its cue from Wall Street rather than Asia.
The index of blue-chip share will advance 20 points to 7,263.70, according the spread betting firms.
The Dow Jones managed to eke out a 5 point gain on Friday giving an eleventh success ‘up day’ – matching a record that dates back to 1992.
However there is some caution ahead of a speech by Donald Trump to a joint session of Congress on Tuesday.
“For about three weeks now markets have been awaiting further details on the so called ‘phenomenal’ tax plan that the President promised us on February 9 when he was at a meeting of airline executives,” said Michael Hewson of CMC Markets.
Approaching the close, the Nikkei 225, Shanghai Composite and Hang Seng were off respectively 0.95%, 0.51% and 0.35%, with banking stocks leading the declines.
On the international currency markets the pound dropped below the US$1.24-mark before recovering US$1.2424 amid reports that Scotland is about to launch a referendum on remaining in the EU.
Looking at the UK corporate calendar, the week kicks off with a trading update from Associated British Foods (LON:ABF). As the owner of the Primark discount clothing chain it will also provide us a temperature reading from the High Street.
We also have FTSE 100 builder Persimmon (LON:PSN) Monday, while on Wednesday ITV (LON:ITV) will tell us whether how well it fared financially last year when it publishes prelims.
- Brent crude up 42 cents at US$56.41 a barrel.
- Gold down 40 cents an ounce at US$1,257.90.
Business Headlines
- The UK has risen a place in investors’ eyes to equal Germany as the third most important country for company growth prospects in a sign that Brexit has not weighed on the country’s international business standing, according to research carried out by PwC and reported in the Daily Telegraph.
- Mark Cutifani, boss of Anglo American, has said he is happy to take a pay cut as part of an overhaul to the mining group’s remuneration policy - Daily Telegraph.
- Panmure Gordon is launching an online brokerage platform on Monday, as the UK stockbroker and its traditional rivals face pressure from falling commission rates, regulatory change and a slowdown in corporate deals - FT.
- GlaxoSmithKline has conducted the world’s first drug trial under “real world” conditions — closely watched by an industry under greater pressure than ever to prove the value of its medicines to cost-constrained health systems - FT.
- Sir Ian Cheshire, the former chief executive of B&Q’s owner Kingfisher, is poised to become chairman of the UK division of Barclays Bank, the part of the lender being ring-fenced to protect taxpayers from any future banking crisis - Times.
- The imposition of a maximum stake of £2 on lucrative gaming machines in high-street betting shops would wipe out thousands of jobs and cost the Treasury £1bn in tax, according to research for bookmakers carried in The Times.
- Billionaire investor Warren Buffett always draws a big audience with his annual letter to Berkshire Hathaway shareholders but this year’s edition doesn’t break much new ground - Independent.
- Consumer goods giant Unilever is on the brink of unveiling a cull of top products including Flora margarine and Bertolli spreads - Daily Mail.