FTSE 100 ends four down
Brexit worries persist
FTSE 250 33 pts higher
FTSE 100 recouped some losses from early afternoon trade but still finished lower, at 7,369.
That’s around a four point fall on the day as the market continued to mull over the repercussions of the Brexit process trigger.
It all unnerved a London market that had been buoyed by a decent start on Wall Street, although the more domestically focused FTSE 250 index was up over 33 points at 19,011.
Ken Odeluga, at City Index, said: “The first test for markets is likely to come at the end of April when the EU will hold its first summit on Brexit.
“This is when the markets will hopefully gauge the tone of the negotiations and whether 0r not the EU wants to work with the UK to get a decent deal in the bag, or if it wants to punish the UK for voting to leave.”
Markets were buoyed somewhat by data showing that the UK economic sentiment in March rose to its highest level in 18 months, with business confidence improving in the services, retail and construction sectors.
On Footsie, the biggest riser was copper mining titan Antofagasta (LON:ANTO), up 2.94% to 840p.
Schroders (LON:SDR) lost 1.75% to 3,040p, BT (LON:BT.A) was 1.66% lighter at 317p and Marks & Spencer(LON:MKS) lost 1.22% to 331.4p.
Top laggard was Mediclinic International (LON:MDC), which shed 3% to stand at 759p.
3pm....Blue chips go lower
London’s blue chips turned down as Brexit dominated the headlines with a raft of companies said to be upping sticks now that the deed has been done.
Computer gaming companies, JP Morgan and even City of London insurance institution Lloyds unveiled plans to shift at least part of their UK operations.
It unnerved a London market that had been buoyed by a decent start on Wall Street, where the Dow Jones Industrial Average was 65 points to the good at 20,775.
FTSE 100 shed 21 to 7,352, with biggest fallers comprising Schroders (LON:SDR) down 2,5% to 3,016p, BT (LON:BT.A) 2% lighter at 315p and Marks & Spencer(LON:MKS) which shed 2% to 315p.
Ashtead and Wm Morrison were the best of the risers all day on broker upgrades.
News that Spectra Systems Corp (LON:SPSY), the banknote authentication specialist, is to start paying dividends.
Shares rose more than a fifth to 44p as the company revealed an inaugural dividend in its full-year results.
Adjusted underlying earnings more than doubled in 2016 to US$2.38mln.
10.30am..FTSE 100 makes modest gains as Brexit uncertainty lingers
London’s blue chips are trading sideways again with Brexit still the main topic of conversation and little buying (or selling) activity.
Europe's reaction to Article 50’s signing suggests little sign that Britain’s former partners want to be either friendly or accommodating.
FTSE 100 was five points higher at 7,379 even so with US-focused construction plant hire specialist Ashtead (LON:AHT) the largest riser, adding 3.7% to 1,670p.
It has a been a big winner from Donald Trump’s election on US infrastructure spending hopes and got another nudge higher today from an initiation note from broker Liberum.
“The upside potential from increased rental penetration in the US market is yet to be fully reflected in Ashtead’s share price,” it said.
The group is “well placed to deliver 9% annual underlying revenue growth and further improve its sector leading margin”. Buy with a 1,940p target price was its view.
Elsewhere, Imperial Brands PLC (LON:IMB) added 32p to 3,876p after a mixed trading update.
A currency tailwind will mean first half profits and earnings per share will be strong but revenues will be lower due the persistent decline in volumes and flat prices.
Supermarket Wm Morrisons PLC (LON:MRW) was rising after a Bank of America Merrill Lynch upgrade, with the US broker also raising ad giant WPP group PLC (LON:WPP) to overweight.
Morrisons rose 2% to 242p, while WPP rose 1% to 1,726p.
Away for the main board, miller Carr’s Group slumped 18% to 123.7p as a delayed contract in the UK manufacturing business prompted a big profit warning.
The US animal feed block business also suffered as volumes and margins were hit by falling cattle prices for producers.
Rex Bionics PLC (LON:RXB), the maker of the REX exoskeleton, was a winner among the tiddlers.
The shares doubled to 13p on no news at all, though last we heard the company was in talks with a “substantial international partner” over a potential tie-up.
Elsewhere in the medical sector, medical imaging software company Feedback (LON:FDBK) said itsTexRAD Lung product could soon be available on the diagnostic imaging platform of an unnamed leading global imaging company
The company also said it is on track to report increased revenue for the financial year as a whole.
The shares were 13.7%.
Going the other way were shares in Ncondezi Energy Limited (LON:NCCL), the developer of a 300Mw power plant project in Mozambique.
Shares plunged 42% to 4.625p on fears that this will affect its ability to pay off a loan facility before a higher rate kicks in.
Proactive news headlines
The boss of WideCells Group PLC (LON:WDC) said the stem cells services provider is “ideally positioned” to start generating revenues in 2017 from all its three divisions. In a statement accompanying the firm’s 2016 results, chief executive Joao Andrade said WideCells has made “significant progress in the commercialisation of our stem cell services."
In less than nine months Amryt Pharma PLC (LON:AMYT) has passed a series of landmarks that might take years for other drug companies to achieve, and it has done so at a fraction of the cost normally associated with such progress.
Bushveld Minerals Limited (LON:BMN) has secured the final funding needed to support its acquisition of a 78.8% stake in Strategic Minerals Corporation from Evraz Group. The South Africa-focused miner’s wholly-owned Bushveld Vametco Limited has agreed a bridge loan facility of up to US$11mln with Barack Fund SPC Limited to fund the acquisition.
Prelims from the digital marketing specialist Be Heard Group PLC (LON:BHRD) charted a period of significant expansion as it started to deliver on its buy and build strategy. It made acquisitions two (MMT) and three (Kameleon), expanding its offering into user experience, design and build and content marketing.
Myanmar-language social media company MySQUAR Ltd (LON:MYSQ) revealed a half-year loss of US$1.58mln from US$1.31mln. The company expects operating cash flow to improve as recently launched apps start to generate revenue.
Horizonte Minerals Plc (LON:HZM) has begun drilling work on its Araguaia nickel project in northern Brazil that will contribute to the compilation of a feasibility study. In total Geotechreserves Do Brasil will carry out a 1,500 metres programme that will help estimate how much ore is contained in area selected for trial excavation.
Coal firm Anglo Pacific Group PLC has reported a surge in royalty income in full-year 2016, mainly thanks to a significant increase in overall saleable tonnes from its Kestrel mine in Australia and is to reconsider its dividend levels with its 2017 interims. The group reported a 127% increase in royalty income for the full-year to December 31 to £19.7mln, up from £8.7mln in 2015.
Kibo Mining PLC (LON:KIBO) has decided to implement a diversified production strategy for its Mbeya coal mine in Tanzania that could see it reach output earlier than planned. The company said the strategy will develop the mine to produce coal for the Mbya power plant, its primary client, and for the domestic coal market, its secondary client.
ANGLE PLC’s (LON:AGL, OTCQX:ANPCY) collaboration with Bart's Cancer Institute (BCI) has shown the company’s Parsortix system is useful in detecting and predicting the spread of prostate cancer. The new results, presented at the World CDx Europe conference in London, suggest that using Parsortix in combination with existing assessment methods is potentially more effective than the current approach.
Tentative is possibly the best word to describe the performance of the FTSE 100 which opened up nine points to the good at 7,382.24.
The market’s focus on was on the pound which was off slightly at US$1.2414 with forex traders a little spooked by the less than conciliatory tone from the European Union ahead of Brexit negotiations.
“The EU pushed back the Britain’s proposal to discuss a free-trade environment, citing that the issue will be looked after at an advanced stage of the negotiations,” said Ipek Ozkardeskaya, of London Capital Group.
The weakness of the pound was the driver behind plant hire specialist Ashtead’s (LON:AHT) rise early on as it is a big dollar earner. The defensive and financial stocks were on offer.
Among the early risers lower down the pecking order, digital marketing specialist Be Heard (LON:BHRD) was up 5% after results, while Horizonte Minerals was given a shove higher by news that it had kicked off a new drilling programme.
6.45am...modest rise predicted
London’s FTSE 100 is seen very modestly higher ahead of Thursday’s open as investors tentatively adjust to the new post-Article 50, pre-exit Brexit normal.
Brexit was triggered, but so far nobody has really heard a bang.
“Anyone expecting fireworks in the wake of the triggering of Article 50 yesterday would have been rather disappointed by events as the pound, after an early slide, managed to hold up rather well, as the day wore on,” said Michael Hewson, analyst at CMC Markets.
“As for European equity markets they barely blinked.”
Over on Wall Street, the trading was also temperate. The Dow Jones closed down 40 points, 0.2%, at 20,659.
The S&P 500, meanwhile, added 0.11% to 2,361 and the Nasdaq Composite added nearly 0.4% to end the session at 5,897.
In Asia, Japan’s Nikkei is down 0.85% trading at 19,053 and Hong Kong’s Hang Seng moved 0.3% lower to change hands at 24,313. The Shanghai Composite dropped 0.76% to 3,216.
Australia’s ASX 200 climbed 0.4% to 5,896.
Here in London, IG Market s sees the FTSE 100 just 6 points higher calling the blue-chip benchmark at 7,366 to 7,370 about an hour before the start of dealing.
City announcements:
Finals: SciSys PLC (LON:SSY); Genel Energy PLC (LON:GENL); International Public Partnership Ltd (LON:INPP); Booker Group PLC (LON:BOK); Amryt Pharma (LON:AMYT); Anglo Pacific Group PLC (LON:APF); Starcom Plc (LON:STAR); Chesnara Plc (LON:CSN); Management Resource Solutions Plc (LON:MRS), IPSA Group PLC (LON:IPSA); Arria NLG PLC (LON:NLG)
Trading Statement: RPC Group PLC (LON:RPC); Booker Group PLC (LON:BOK)
City headlines:
Merger veto leaves LSE free to move in its own clear direction - Financial Times
Trump Will Sign the Bill Repealing Obama-Era Internet Privacy Rules - Fortune
The new 12-sided £1 coin launches – but you may not be able to use it - The Guardian
Charge 25p for coffee cups to reduce waste - The Times