FTSE 100 closes around 71 points to the good
Sainsbury's top Footsie riser
Lloyds and RBS at 10-month highs
Speaker of the Commons Bercow chimes in on third meaningful vote
FTSE 100 closed Monday firmly higher as Brexit remains a focus for traders and the British pound was subdued as it remains unclear as to how this week will play out.
Speaker of the House of Commons John Bercow has chimed in to comment on a potential third vote on the Prime Minister's withdrawal agreement, saying that MPs could not be asked to vote on precisely the same subject twice.
He says the government can only bring back a so-called "meaningful" vote to parliament again if there has been subtantial 'change' to the Brexit deal.
The UK is due to leave the EU on March 29.
Footsie appeared to gain ground as there was more optimism of a potentially softer exit from the EU. It closed nearly 71 points higher at 7,299.
The biggest gainers on the blue-chip index were resource stocks, and supermarket Sainsbury's (LON:SBRY) took the top spot, gaining almost five points to stand at 234.90p.
The more UK company focused mid-cap index, the FTSE 250 closed around four points lower at 19,486.
3.00pm: The Footsie risks getting a nosebleed
Running the risk of developing a nosebleed, the FTSE 100 was knocking on the door of 7,300 in late afternoon trade.
The index of blue-chip stocks was up 67 points (0.9%) at 7,295 after drawing encouragement from a solid start on Wall Street.
Mining stocks were doing most of the heavy lifting, thanks to renewed optimism about the vigour of the Chinese economy.
BHP Group PLC (LON:BHP), Rio Tinto PLC (LON:RIO) and Anglo American PLC (LON:AAL) were the Footsie's top three risers, with gains of more than 2%.
“The gain in mining stocks has been helped by a Brazilian court ordering mining giant Vale to shut one of its mines, raising concerns about a supply shortage, which has helped push iron ore prices sharply higher,” noted Michael Hewson at CMC Markets.
“The banking sector has had a decent day with Lloyds and RBS shares hitting ten-month highs,” he added.
The day’s top riser was Footasylum PLC (LON:FOOT), up 74% after it succumbed to a takeover offer from JD Sports but WideCells Group PLC (LON:WDC), up 73%, was not far behind as it announced a change in direction into the field of “social first” publishing.
1.35pm: Dow weighed down by Boeing but other US benchmarks make progress
Although the Dow Jones was once again weighed down by Boeing, the other major US benchmarks edged higher at the outset.
The Dow Jones fell 32 points (0.1%) to 25,817 but the S&P 500 rose 4 points (0.1%) to 2,826 while the tech-heavy NASDAQ Composite was 15 points (0.2%) higher at 7,704.
On the home front, the FTSE 100 was a shade below its high for the day at 7,284, up 56 points (0.8%).
Down among the tiddlers, there was bad news for shareholders of Allergy Therapeutics PLC (LON:AGY), the allergy specialist.
The shares lost two-fifths of their value after the top-line results from the Phase III clinical trial B301of its new adjuvanted birch allergoid product surprisingly failed to meet its primary end-point.
In contrast, WideCells Group PLC (LON:WDC) – soon to be known as Iconic Labs – shot up by three-fifths after it said its new focus would be on online marketing, content, and technology products designed to create brands and increase customer engagement.
12.30pm: Not much shaking after a solid start for the Footsie
After a solid start, the Footsie has become becalmed and there is little sign of a boost emanating from Wall Street.
The FTSE 100 was up 48 points (0.7%) at 7,276, ahead of what is expected to be a mixed opening in the US.
“We’re looking at a mixed start to trade on Wall Street as investors attempt to second guess the Fed’s stance at this week’s monetary policy meeting,” wrote James Hughes at Axi Trader.
“Failure for Jerome Powell to confirm an end to quantitative tightening has the potential to rattle sentiment in stock markets, in light of the broadly softer than expected economic data we saw coming through at the end of last week. This cautious approach could therefore prevail until the statement is made, and that’s not due until well into Wednesday’s session,” Hughes noted.
“There’s still no further firm news on the trade deal with China, which again has the potential to drag on the health of US equities and the only stand out on today’s economic calendar is the NAHB Housing Market Index. This is forecast to show a modest up-tick, although as the March reading it should also be supported by the fact that the previous print would have been caught in the shadow of the US government shut down. Even a small improvement here may be sufficient to convince the Fed that looser credit would be no bad thing,” he added.
The Dow is tipped to open about 9 points weaker at 25,840 while the S&P was seen starting the day at around 2,826, up 4 points.
11.00am: FTSE 100 and FTSE 250 go their separate ways
London's index of leading shares was consolidating early gains in late morning trading.
The FTSE 100 was up 47 points (0.65%) at 7,276, despite a lack of enthusiasm for the housebuilders, which had a decent run last week.
Persimmon PLC (LON:PSN) and Berkeley Group Holdings PLC (LON:BKG) – both down 1% - led the sector lower with Taylor Wimpey PLC (LON:TW.) and Barratt Developments PLC (LON:BDEV) – down 0.9% and 0.7% respectively – not far behind.
While the Footsie was on the up, the mid-cap FTSE 250 was in the red, down 17 points (0.1%) at 19,474, despite a 6.7% rise for oilfield support services provider, Hunting Plc (LON:HTG), after UBS upgraded the stock from 'neutral' to 'buy', with an increased price target of 710p, up from 600p previously.
Hard to know what is true. Domino's Pizza Group franchisees are obviously using the press to try and make their case and/or to try and pressure the company. The relationship with franchisees appears to have broken down. They probably want to cause leadership change at #DOM.
— Andrew (@qualitycompound) March 17, 2019
Pizza-pedlar Domino's Pizza PLC (LON:DOM) perked up, rising 3.5%, after it strongly refuted press reports suggesting the company has been misleading investors about progress in negotiations with the pizza chain's franchisees.
10.00am: Commodity plays lead the way after China's premier vows to hit macro targets
Having established itself around the 7,275 level around 9.00am, the Footsie has moved sideways since then.
The FTSE 100 was up 47 points (0.65%) at 7,275, with commodity plays leading the way.
Mining giant Rio Tinto PLC (LON:RIO) was the top riser, up 2.5%, closely followed by steel-maker Evraz plc (LON:EVR), up 2.4%, as investors buy into optimism over the Chinese government’s determination to keep the economic pot boiling in the People’s Republic.
China’s premier, Li Keqiang, asserted recently that the government would not allow China’s economy to underperform the macro targets set at the National People’s Congress.
#WorldWar3: @China's Premier Li Keqiang admits country facing #EconomySlowdown. China's industrial output growth falls to 17-yr low, while economy sinks to 3-decade low. Some analysts believe #USChinaTradeWar may have prompted the confession by Keqiang.https://t.co/xQfpQcO6Gu pic.twitter.com/vnkuAXMdLj
— Third World War Info (@WW3Info) March 18, 2019
Rightmove PLC (LON:RMV) was the biggest blue-chip faller, shedding 1.1% at 495.15p after UBS downgraded the property listings web site operator to ‘neutral’ as it waits for a better entry point.
The target price was nudged up to 500p from 490p.
9.15am: The top-shares index opens with meaningful advance
The FTSE 100 has made a meaningful advance in early deals.
The index of blue-chip shares was up 26 points (0.4%) at 7,254.
“It’s going to be some week for financial markets, with the UK very much at the centre of the drama as Theresa May attempts to get her deal over the line,” declared Craig Erlam at Oanda.
“May has suffered crushing defeats on her deal at the first two times of asking and with nothing having changed, questions are naturally arising about whether the PM will pull the third vote on Tuesday. Ultimately it comes down to how many Brexiteers will back her deal out of fear of Brexit never happening and whether she can get the DUP on board,” he opined.
Corporate news flow from the blue-chips is minimal, as it often is on a Monday, with AstraZeneca PLC (LON:AZN) one of the few making a splash – up 0.7% at 6,318p after the US Food and Drug Administration granted orphan drug designation for saracatinib, a potential new medicine for the treatment of idiopathic pulmonary fibrosis.
Worldpay - owned by RBS, sold to private equity, floated in London, taken over by Vantiv, now merging with FIS.
FIS = shares & cash deal so looks likely that Worldpay will leave UK stock market as FIS is New York-listed biz. That's assuming the merger is approved by shareholders
— Daniel Coatsworth (@Dan_Coatsworth) March 18, 2019
In merger news, Worldpay Inc (LON:WPY) is becoming the Russian doll of the acquisitions scene.
The company, which was bought out by Vantiv Inc last year, with Vantiv adopting the British company’s name, has been taken out by Fidelity International Services (FIS) in a US$43bn deal.
@Marketwatch $FIS buying Worldpay $WP in $43Bn #cash-&-stock deal https://t.co/gTwTvsC7kH #FINTECH @bkollmeyer#RBS which was rescued by #UK #taxpayers #money, sold #WORLDPAY for at £2bn - https://t.co/tW8f8LbCGp
Today UK taxpayers will be appalled. @Ian_Fraser @efgbricklayer pic.twitter.com/ewpHZfbgWS
— conkers (@conkers3) March 18, 2019
Shares in Worldpay were up 10.4% at 8,177p.
Proactive news headlines:
WideCells Group PLC (LON:WDC) is to change its name to Iconic Labs PLC after creating a new media business and bringing onboard former executives from social publishing giant UNILAD.
Tlou Energy Limited (LON:TLOU) updated investors on its drilling programme in Botswana. The company said that two development pods – each containing three wells - have been completed and, they are now de-watering prior to controlled gas flows.
Oriole Resources PLC (LON:ORR) has identified multiple gold-in-soil anomalies at the Wapouzé gold project in Cameroon. Oriole can earn up to a 90% interest in Wapouzé.
Strategic Minerals PLC (LON:SML) (USOTC:SMCDY) is to acquire 100% ownership in the Redmoor tin and tungsten project in Cornwall after it entered into arrangements with New Age Exploration Limited to acquire its entire 50% shareholding for a maximum consideration of £2.66mln.
Allergy Therapeutics PLC (LON:AGY) received a setback as top-line results from the Phase III clinical trial of its new adjuvanted birch allergoid product disappointed. The profitable drugs development company said the trial did not show a statistically significant difference between those taking the drug and those receiving the placebo.
Primary Health Properties PLC (LON:PHP), which last week completed its merger with MedicX Fund Limited, has contracted to acquire, by way of forward funding, a new primary healthcare medical centre in Kew, London. The FTSE 250-listed firm said the property is due to be completed in October 2019 and will have a net internal area of approximately 845 square metres for a total cost of £4.6mln.
Arix Bioscience PLC (LON:ARIX) said it has invested US$15mln (£11.3mln) in Imara, a company developing treatments for sickle cell disease.
Eco Atlantic Oil & Gas Ltd (LON:ECO) (CVE:EOG) has revealed the impressive findings of a new resource assessment for the Orinduik Block, offshore Guyana, ahead of exploration drilling later this year. Consultant Gustavson Associates has estimated some 3.98bn barrels of prospective resources across fifteen exploration areas, which for Eco’s 15% stake in Orinduik equates to 597.3mln barrels net to the AIM-quoted firm.
Chaarat Gold Holdings Limited (LON:CGH) is to receive a cash boost of US$31.5mln to develop the Tulkubash and Kyzyltash projects in the Kyrgyz Republic. Turkish mining specialist Ciftay will pay the cash in increments and become the mining and construction contractor at Tulkubash with a 12.5% stake in both that project and Kyzyltash.
Kavango Resources PLC (LON:KAV)has completed the second phase of its airborne electromagnetic survey over the northern section of the Kalahari Suture Zone. The survey covered approximately 2,100 line-kilometres to the north of Hukuntsi in southwest Botswana.
Bluebird Merchant Ventures Ltd (LON:BMV) has raised £436,500 to fund the next stage of its mine re-opening project in South Korea. A placing of 19.4mln shares at 2.25p was heavily backed by management, with the senior executives putting up £186,500 of the amount raised.
Motif Bio PLC (LON:MTFB) (NASDAQ:MTFB) has appointed long-standing board member Bruce Williams as its interim chairman to replace Richard C.E. Morgan who is stepping down with immediate effect to focus on other business commitments.
W Resources PLC (LON:WRES) is continuing with construction and installation work at the La Parilla project in Spain as part of its ramp up to full production. First tin and tungsten were produced from the project late last year.
Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) has revealed a significant extension to the resource at Lake Way in Western Australia following completion of an exploration program across the whole of the lake. The estimated total resource at Lake Way has increased to 73 million tonnes (Mt) of SOP (sulphate of potash) calculated using total porosity and 8.2Mt of SOP calculated using drainable porosity.
US Oil & Gas PLC (LON:USOP) told investors that dialogue is continuing with regulatory agencies regarding its permit application for the hydraulic fracturing of the Eblana-3 well, in Nevada. The explorer added that it has undertaken a comprehensive study of local water resources, requiring multiple samples be collected over an extended period and be independently analysed.
6.45am: Leading shares expected to open on the front foot
London’s FTSE 100 is expected to make a positive start to the new week supported by positive sentiments for improving trade relations between the US and China, and, hopes that another big week for Brexit will conclude with some form of certainty.
CFD and spreadbetting firm IG Markets sees the FTSE 100 up by about 29 points, calling the index at 7,260 to 7,263 with more than an hour to go until the start of Monday’s dealing.
Investors are braced for another Brexit dominated week of newsflow.
“It would appear that in the wake of last week’s events at Westminster investors are starting to feed money back into UK equities in the hope that some form of soft Brexit will come about in the coming weeks, though that is by no means certain given last week’s political pantomime at Westminster, where Theresa May’s withdrawal agreement came a cropper for the second time,” said Michael Hewson, analyst at CMC Markets.
“The Westminster pantomime looks set to continue this week, as expectations rise that the Prime Minister will try for a third time to get her deal passed, ahead of this week’s EU Council meeting at the end of the week, when it is expected the Prime Minister will ask for an extension to article 50, with the only question being as to how long any extension is likely to be.”
In Asia, this morning, the major equity indices all pointed higher.
Japan’s Nikkei rose by 133 points or 0.62% to 21,684 while Hong Kong’s Hang Seng gained 310 points or 1.07% to 29,320.
The Shanghai Composite index meanwhile advanced 2.39% to 3,092.
Significant announcements expected for Monday:
Finals: S4 Capital PLC (LON:SFOR), Gama Aviation PLC (LON:GMAA), Maintel Holdings plc (LON:MAI), Miton Group PLC (LON:MGR), Restore Plc (LON:RST)
Interims: Volution Group PLC (LON:FAN)
Economic data: US NAHB housing market index
Around the markets
- Pound: US$1,3281, down 0.07%
- Gold: US$1,299 per ounce, down 0.19%
- Brent Crude Oil: US$67.23 per barrel, up 0.1%
- Bitcoin: US$3,955, up 0.02%
City Headlines:
- Interserve given 'public contracts worth £660m in run-up to collapse' – The Guardian
- Junk food ads could be banned before 9pm – ITV News
- Tom Watson urges McDonald’s to cancel ‘danger to health’ campaign – The Guardian
- Dutch PM Likens May's Brexit Tenacity to Python's Black Knight – Bloomberg
- Duty‑free drinking ban for air passengers - The Times
- Brexit fears dampen spring property revival as asking prices fall – The Guardian