FTSE 100 closes around 16 higher at 7,340
Next top riser after profits dip
Market subdued after Westminster attack
FTSE 100 closed higher on Thursday, with big cap retailers leading the gainers.
The UK benchmark closed around 16 points up at 7,340.
Investors around the world are eyeing the US where President Donald Trump is making last ditch efforts to win over some in the Republican Party to begin dismantling Obamacare - the healthcare plan.
The vote and result is seen as a potential gauge of whether other policies he may have pledged prior to entering the Whitehouse will become a fixture or not.
The UK focused FTSE 250 was also higher, adding 169 points to 19,002. UK benchmarks fell yesterday as it emerged the Houses of Parliament and surrounding area had been the scene of a terror attack.
The biggest Footsie gainer was Next (LON:NEXT) up over 8% to 4,199p after its results were as bad as expected, but not worse. That helped coax rival Marks & Spencer (LON:MKS) out of its shell. Its shares added 3.82% to finish at 337.3p.
The biggest loser was gold miner Randgold Resources plc (LON:RRS) down 2.74% at 7,095p.
2.30pm...Eyes turn to US
All eyes turned to the US ahead of a speech from Fed chief Janet Yellen and a crucial vote in Congress for new President Donald Trump on healthcare reform.
Shares in London marked time beforehand with the FTSE 100 three points higher at 7,327, while the Dow Jones Industrial Average added 45 to 20,706.
The vote is on whether the US should continue to support the Obamacare programme that was the cornerstone of the previous President’s tenure.
Donald Trump is backing the call to repeal and replace the American Health Care Act, but it is by no means a sure thing that the proposal will pass the House of Representatives.
“The threat of a potential setback in the healthcare bill raising doubts over Trump’s ability to move forward with the proposed tax cuts and infrastructure spending.
Today will be the first major test for Trump’s legislative ability and the outcome may either create a Trump slump or technical bounce for bulls to exploit,” said FXTM Research Analyst Lukman Otunuga.
11.15am ... FTSE 100 edges in to blue as Next rallies
London’s blue chip index was steady with yesterday’s terror attack near Parliament dominating the mood and the headlines.
Latest news is that eight people have been arrested, while forty are injured with some of them still described as in critical condition.
Four people including the perpetrator died in the attack at Westminster yesterday afternoon.
FTSE 100 was three points higher at 7,238.
“Yesterday’s terrorist attack in Westminster proved once again that markets are remarkably resilient in the face of such atrocities.
Terrorist attacks will typically only impact markets if they have a subsequent international military response,” said Joshua Mahony at spread better IG.
On a big day for retail announcements, Next Plc (LON:NEX) stood out with a 7% rise to 4,151p.
WATCH: Next plc boss admits they've been focusing too much on 'keeping up with trends'
Latest annual results showed the first profits downturn in eight years, but a dividend yield of 8% and solid cash generation were in the retailer’s favour said analysts.
Pre-tax profit fell 3.8% to £790.2mln in the year to the end of January, compared to £821.3mln the previous year.
Conversely, Ted Baker PLC (LON:TBK) fell even though the fashion retail chain produced another strong set of annual results.
Revenue rose 16.4% to £531mln from £456mln as the clothing chain continued to expand globally. Shares eased 5% to 2,688p.
Retail sales figures meanwhile suggested the picture is not as bleak as painted for shop owners.
Sales rose by 1.4%, reversing a drop in January and sending the year-on year growth rate up to 3.7%, miles better than expected.
It was a day of contrasting fortunes for Tesco PLC (LON:TSCO) and J Sainsbury plc (LON:SBRY) after a leading investment bank reshuffled its recommendations for the food retail sector.
Deutsche Bank moved Tesco to a ‘buy’ (from ‘hold’), prompting a 1% rise in the share price, while it went in the opposite direction with Sainsbury, which chipped 1% from the company’s valuation.
Both changes were justified by Deutsche on valuation grounds. Sainsbury is now within 9% of the house’s price target, while Tesco has 27% ‘upside’, it said.
Elsewhere, being chosen to power drones that sort out where the containers are in dockyards did wonders for the share price of Intelligent Energy PLC (LON:IEH).
Shares rocketed on the deal with PINC, a global market leader in the supply of stock movements systems.
PINC will offer IEH’s fuel-cell powered drones alongside battery powered ones to provide real-time inventory tracking.
Martin Bloom, Intelligent Energy’s chief executive, added: "PINC is based in California, a state that is proactively adopting hydrogen. We see this region as a significant market for Intelligent Energy's range of market-ready fuel cell products."
Shares rose 154% to 14.6p.
Consultant WYG PLC (LON:WYG) received harsh treatment as it reported some delays in the confirmation of new contracts and green lights for existing contracts.
Underlying operating profit for the year to the end of March is still expected to show an impressive near-25% improvement on the previous year, but will now be less than previously expected at a figure approaching £9mln.
Shares tumbled 20% to 103p.
8.45am ..FTSE 100 makes subdued start as retail sector dominates the City headlines
Trading in London began in subdued mood as the Square Mile digested the latest details of the Westminster terror attack.
The FTSE 100 was off six points early on at 7,318.35, taking its cue from Wall Street, which marked time after Tuesday’s wobble.
Retail was the stand-out sector as B&Q owner Kingfisher (LON:KGF) took a kicking for a second day following its underwhelming assessment of prospects on Wednesday.
Counter-balancing this was the relief rally that drove Next (LON:NXT) to the top of the riser’s list. The results were as bad as expected, but thankfully not worse.
That helped coax rival Marks & Spencer (LON:MKS) out of its shell, while a Deutsche Bank upgrade provided grocer Tesco (LON:TSCO) with a bit of fizz.
Proactive news headlines
Healthcare company Futura Medical PLC (LON:FUM) said it has the balance sheet strength to capitalise on its breakthrough erectile dysfunction gel. It ended 2016 with £12.35mln in cash. Net loss for the year narrowed to £3.7mln from £5.1mln the year before.
eSports business Gfinity Plc (LON:GFIN) has signed up technology giant HP Inc (NYSE:HPQQ) as the first official partner of its inaugural Gfinity Elite Series eSports tournament.
Support services and infrastructure firm Stobart Group Limited (LON:STOB) has told investors that its 49%-owned Eddie Stobart Logistics associate company is to float on AIM next month.
The latest results from Mariana Resources PLC’s (LON:MARL) Hot Maden copper-gold joint venture in Turkey were, once again, eye catching. More importantly, they are helping confirm the continuity of the mineralisation and may contribute to expanding the size of the resource.
Sound Energy's (LON:SOU) Badile gas well near Milan has reached the second casing point at 1,407 metres less than a month after work began. The next casing point is at 2,600 metres - more than halfway to the planned target depth of 4,445 metres. Drilling and logging are expected to take 100 days.
Shanta Gold Limited (LON:SHG) has raised its expectations for gold production growth as it announced a revised mine plan that will extend the life of the New Luika gold mine in Tanzania. Shares rose 3.4% to 9.66p in morning trading.
6.45am..Stable start predicted
London’s FTSE 100 looks set for a stable start to Thursday, helped somewhat by US equities getting back on their feet after a so-called ‘Trump wobble’.
On Wall Street, the Dow Jones ended Wednesday more or less flat at 20,661 whilst the S&P 500 edged slightly higher (0.19%) to close at 2,348, meanwhile, the Nasdaq added around 0.5% to reach 5,821 by the end of the day.
The potential for US-led volatility is far from over, however.
“Concerns remain about the ability of the new US administration to deliver on its promises on tax and banking reform, as well as infrastructure spending in the time expected given the current disagreements surrounding health care reform,” said Michael Hewson, analyst at CMC Markets.
“If Trump is unable to deliver on his health care promises, where the majority of Republicans are broadly in agreement it will inevitably beg the question as to how he can deliver on anything else, which means a defeat in today’s House vote could trigger further investor nervousness, about deliverables.”
Overnight in Asia, Japan’s Nikkei gained 0.23% to trade at 19,085 and Hong Kong’s Hang Seng was mostly flat at 24,321. The Shanghai Composite was ever so slightly lower, at 3,244.
Australia’s ASX 200 was in positive territory, rising 0.4% to 5,708.
Here in London, spreadbetting and CFD firm IG Markets sees the FTSE 100 putting the front foot forward, calling the blue-chip benchmark about 5 points higher at 7,328 to 7,332 with just over an hour to go to the open.
On the corporate front, investors await for results from Next Plc (LON:NXT) which is expected to reveal its first decline in full year profits for eight years as consumers begin to feel the pinch of rising inflation.
The company in January cut its pre-tax profit guidance to £792mln for the year to end of January 2017 from a previous estimate of £805mln, down from £821.3mln a year earlier, as it posted poor Christmas trading results.
City schedule:
Interim: Kier Group PLC (LON:KIE). Finals: Curtis Banks Group Plc (LON:CBP, Futura Medical PLC (LON:FUM), Next Plc (LON:NXT),SOCO International PLC (LON:SIA), Science in Sport Plc (LON:SIS)
AGM / EGM: Conygar Investment Company (The) PLC (LON:CIC)
Trading Statement: Halma PLC (LON:HLMA), IG Group Holdings plc (LON:IGG)
Ex-Dividend: Private & Commercial Finance Group plc (LON:PCF, Octopus Second Aim Vct Plc (LON:OSEC), Redrow plc (LON:RDW), Segro (LON:SGRO), Tristel Plc (LON:TSTL) NWF Group plc (LON:NWF), Meggitt plc (LON:MGGT), Bovis Homes Group PLC (LON:BVS), Dunelm Group PLC (LON:DNLM), Galliford Try plc (LON:GFRD), Heavitree Brewery PLC (LON:HVT), BlackRock Latin Am (BRLA).
- London's trading infrastructure retains edge despite Brexit - Financial Times
- State pension age could be raised to 70, says report - BBC News
- Shoe retailer Brantano goes into administration with 1000 jobs at risk - The Guardian
- Google apologizes to ad clients for YouTube content fiasco – Reuters
- Tesco pulls Heineken brands from shelves - Reuters
- Waitrose axes free coffee for shoppers – unless they buy something first - The Guardian