FTSE 100 closes 30pts up; FTSE 250 also higher
LSE/Deutsche merger knocked back by EU commission
Dow Jones on Wall Street down 45
As the Dow Jones faltered, European equities advanced with FTSE 100 closing 30 points higher.
The UK bluechip index closed out the session at 7.373, up 0.41%.
The FTSE 250 ended up over 25 points at 18,978.
It came as the newswires were full of the detail on the historic moment which saw UK Prime Minister begin the start of the so-called 'Brexit' process.
Miners Antofagasta (LON:ANTO) and the bourse LSE were among the gainers, while on the losing front were also mining stocks. Fresnillo (LON:FRES) was the biggest Footsie laggard - dropping 1.73% to 1,535p.
The biggest gainer was venture capital group 3i Group PLC (LON:III), which was upgraded to 'overweight' by analysts at Morgan Stanley.
The London Stock Exchange (LON:LSE) was among the best of the risers , up 2.71% to 3,106p, as investors shrugged of the blocking of its proposed merger with the Deutsche Boerse.
Notably, news of the decision by the European Commission (EC) comes on the day Article 50 is in effect triggered.
The EC said the companies failed to offer adequate remedies to address all of its competition concerns.
UK housebuilder shares slipped today on the back of Brexit worries, with Barratt Developments (LON:BDEV) down 1.01% to 540.5p. Bellway Homes (LON:BWY) down 2.32% to 2,700p.
Bovis Homes plc (LON:BOV) lost 1.35% to stand at 843.5p.
In small caps, robotic medical device firm Rex Bionics (LON:RXB) surged over 85% to 6.50p.
Akers Biosciences (LON:AKR) was also up again - up 12.9% to 175p after surging yesterday on news that its rapid, cholesterol self-test would soon be on the shelves of major US retailers under the First Check brand after it received a first order.
Also, Circle Holdings PLC (LON:CIRC) jumped 22% to 29.25p, as investment group Tosacafund launched a bid to take it private at 30p per share.
Sound Energy PLC (LON:SOU) meanwhile added 2.25% to 79.5p and major shareholder Greenbury and chief executive James Parsons both bought a decent chunk shares at around the current price.
3pm... London's blue chips rally
London’s blue chips have rallied after Theresa May delivered her historic statement to Parliament over Brexit.
FTSE 100 was eight points higher at 7,351 having been a little bit lower earlier in the day but the modest movement reflects the uncertainty that still surrounds what exactly happens next.
US shares made a cautious start to their trading with the Dow Jones Industrial Average 46 points lower at 20,655, though Nasdaq made gains helped by another record breaking performance from Apple (NASDAQ:APPL) and new highs for Amazon.
In London, the LSE’s (LON:LSE) was among the best of the risers as investors shrugged of the canning of its merger with Deutsche Boerse.
A decision to carry on with a share buyback worth £200mln helped and sent its share price up 3.5% to 3,126p.
Among the small caps, e-sports events group Gfinity (LON:GFIN) held firm as its signed the first four professional eSports teams to compete in the Gfinity Elite Series that will launch later this year.
The teams: Team Infused, Excel eSports, Reason Gaming and Prophecy will compete for the Elite Series championships of Rocket League, Counter-Strike: Global Offensive and Street Fighter V.
Sound Energy PLC (LON:SOU) meanwhile added 2% to 79.25 and major shareholder Greenbury and chief executive James Parsons both bought a decent chunk shares at around the current price.
Noon...FTSE 100 into red as May delivers historic Brexit statement
It’s Brexit day and the press and broadcast media is a frenzy of excitement, but investors have been more cautious with FTSE 100 edging lower.
The blue chip index has shed 14 points to 7,329 with the story of the day so far was the nixing of the London Stock Exchange/Deutsche Boerse merger by the European Competition Commissioner.
Timing had nothing to do with Article 50 insisted the Brussels bureaucrats, but if it was intended to be a punishment it backfired as LSE’s (LON:LSE) decision to carry on with a share buyback worth £200mln sent its share price up 3.5% to 3,126p.
Otherwise, most companies resisted the urge to bury some bad news today, with company updates limited to an in-line trading update from holiday group TUI AG that barely moved the dial. Shares eased 3p to 1,132p.
Russia-focused oiler Nostrum Oil & Gas PLC (LON:NOG) rose 4% to 449.8p as Credit Suisse upgraded to ‘outperform’ from ‘neutral’.
The investment case relies on three phases said the Swiss broker.
First, successful completion of GTU3 this year, securing enough 2P reserves to produce at nameplate capacity via both, drill bit and M&A and refinancing of 2 outstanding bonds.
At GTU3, “While there are only a few months to go until completion, the final stretch is usually the riskiest for such projects,” added Credit Suisse, but it says the company has US$30mln of overrun leeway.
As well as the rating upgrade, the target price rises to 535p from 440p.
Airline Flybe PLC (LON:FLYB) dropped 4.7% to 41p as as it warned its full-year profit will be lower than expected, after its fourth-quarter saw “weak demand in an uncertain consumer environment.”
Circle Holdings PLC (LON:CIRC) jumped 22% to 29.31p, as investment group Tosacafund launched a bid to take it private at 30p per share.
Tosca, through three funds, already owns 26.75% and does not think that operating in the public listed markets is optimal for the private healthcare group ' in terms of the achievement of its business plan'.
Circle was the first private group to run a NHS hospital when it was put in charge of Hinchingbrooke Hospital in Huntingdon, but it walked away from the contract two years ago after heavy criticism saying that contract was no longer sustainable due to spending cuts.
China New Energy PLC (LON:CNEL) stormed higher as it won contracts with Ghana’s Supercare and CNBM General Machinery in China to construct a new ethanol plant in Ghana.
Shares rose 29% to 1.46p.
8.45am..FTSE 100 in positive territory as PM prepares to trigger Brexit process
There was an atmosphere of cautious optimism in the Square Mile ahead of Theresa May’s triggering of Article 50 later Wednesday as the FTSE 100 sidled up 25 points to trade at 7,368.08 early on.
The said, the feeling of bonhomie is more likely to do with the positive performance on Wall Street than the start of Britain’s retreat from the EU.
In fact the fall in pound was probably a better proxy for market sentiment, analysts said.
“The phoney war is over. Article 50 will be triggered today, beginning the long, hard process of extricating the UK from more than four decades of EU legislation,” said Neil Wilson of ETX Capital.
“Sterling - the chief bellwether in the markets – has come off recent highs and is trading at its weakest in over a week against the US dollar.
“As markets open in London cable is holding below US$1.24, decidedly on the back foot as we wait the triggering of Article 50.
“It’s going to be hard to catch a bid today unless Theresa May strikes an unexpectedly dovish stance.”
Miners and financial stocks were in the ascendancy early on as the gold diggers gave up some of their recent gains.
Results from Saga (LON:SAGA) failed to wow the market, with the shares marked down 2.3% early on.
GAME Digital (LON:GMD) was headed in the opposite direction with a 5% rise after interims. On the face of it the figures looked pretty poor. However investors concentrated on the positives contained in the outlook statement. The launch of the new Xbox should help GAME’s cause.
6.45am...Brexit Day
On the day the UK is set to begin the process of leaving the European Union, UK stocks are expected to open firmer.
The optimism is more to do with the strength of Wall Street last night than any wave of euphoria over Article 50 finally being triggered.
The FTSE 100 is tipped to open at around 7,366, up 23 points from last night's close, after the S&P 500 advanced 17 points to 2,359 yesterday.
The Dow Jones average, meanwhile, rose 151 points to 20,702.
Towards the end of trading in Asia Pacific most indices were in the blue.
The Nikkei 225 in Tokyo was five points to the good at 19,207 while in Hong Kong the Hang Seng index was 36 points firmer at 24,381.
It is scheduled to be a quiet day on the corporate news front in the UK though a trading statement from bus and trains firm Stagecoach Group PLC (LON:SGC) may provide some interest, with the company still smarting from losing the South Western rail franchise earlier this week.
Around the markets
- Sterling: US$1.2404
- 10-year gilt yield: 1.195%
- Gold: US$1,251.50 an ounce, down US$7.30
- Brent crude: US$51.51 a barrel, up 18 cents
City headlines
- Planes will be made from wonder material graphene ‘in 10 years’- Daily Telegraph
- Government rules out Channel 4 sale – Daily Telegraph
- Uber to shut down Denmark operation over new taxi laws – The Guardian
- Uber piles its plate with food delivery spots as it nibbles at the heels of rivals Deliveroo and Just Eat – Daily Mail
- Retiring BAe Boss Ian King picks up £3.5 million after eight years at the helm of the defence giant – Daily Mail
- Pension crisis looms as one in five Britons has no savings for their old age – Daily Express
- Property services company to list on the main market in London as it seeks to boost supply of long dated income for pension providers – City AM
- Cost-cutting BBC drops international news agency Associated Press citing “financial pressures” - City AM
- Sports Direct employment agency ‘refusing to honour back-pay deal’ - The Times
- Brexit fears ‘driving French and German companies out of UK’ - The Times
- Number of UK floats sinks – The Times
- Rise of the gig economy fuelled Brexit vote, MPs told – The IndependentItalian football club AC Milan set to list in Hong Kong – Financial Times