InterContinental Hotels (LON:IHG) stole the limelight today as it emerged atop the FTSE 100 leaderboard after becoming the top performer in the FTSE 100 index.
The owner of the Crowne Plaza and Holiday Inn chains rallied 7.5 percent to 1,748 pence after announcing its decision to return US$1 billion to shareholders. IHG said the capital return represents the expected proceeds from the ongoing disposal of InterContinental New York Barclay.
The group quickly made it to the top of the list of the most searched for UK stocks on Google Finance as traders monitored market reaction to the announcement and scrutinised today’s interim report from the first.
During the first six month of the year, group revenues climbed three percent to US$878 million, leading to a six percent increase in operating profits and an eight percent jump in adjusted earnings per share to 64.1 cents.
Two of today’s biggest movers, Standard Chartered (LON:STAN) and Heritage Oil (LON:HOIL), also ranked high among popular Google searches.
Standard Chartered plummeted 23 percent to 1,129 pence on threats by New York state regulators to revoke its licence for illegal dealings with Iran and Heritage Oil rallied 14 percent to 140 pence after trading in its shares was restored on the London Stock Exchange.
Heritage was suspended in early July after acquiring a 45 per cent interest in the OML 30 fields from Shell (LON:RSDB) for US$850 million. The shares were restored today following the publication of further information about the deal.
Other talked about stocks included Bellway (LON:BWY), which is on course to top its full year pre-tax profit expectations as well as Legal & General (LON:LGEN) and Greggs (LON:GRG), whose interims also were on the list of the most read RNS statements.
The housebuilder reported today that it sold 5,226 homes in the year to end July, up 6.2 per cent from the previous year, driven by a 13.4 per cent surge in private home completions, which stood at 4,358.
The greater share of private home completions has resulted in a six per cent increase in the average selling price to £187,000.
Full year margins are now expected to reach 11 per cent compared with the 10.1 per cent posted for the first half and pre-tax profits are set to be “modestly ahead” of current consensus of £98 million.
Despite the strong results, shares in Bellway fell 1.5 percent to 825 pence as it also announced the retirement of its chairman Howard Dawe, which will become effective at the end of January 2013.
Meanwhile, Legal & General hiked its interim dividend by 18 percent to 1.96 pence per share after seeing its earnings surge 14 percent to 6.96 per share in the first half of the year, while pre-tax profits rose 11 percent to £525 million.
During the period, the insurance group generated cash of £407 million and net flows reached £4 billion.
“Our financial and strategic discipline creates confidence in complex and chaotic markets,” said chief executive of Legal & General Nigel Wilson.
“We have strong businesses, and social and economic challenges bring opportunities which we intend to pursue at a faster pace.”
The figures from Greggs revealed a 3.5 percent decline in like for like sales – which exclude the impact of new stores - in the second quarter and a 2.3 percent drop for the first half.
The decline in sales was blamed on the rainy weather, which resulted in a seven percent drop in total UK High Street footfall.
Total first half sales advanced 4.5 percent to £350 million thanks to the addition of 33 stores out of the 90 planned to be opened this year.
Greggs expects conditions to remain challenges for the rest of the year, hoping that this will be offset by its store opening programme and further development of its wholesaling and franchising channels.
While Legal & General and Greggs fell after reporting their interims, dropping 1.8 percent to 129.1 pence and 2.2 percent to 494 pence respectively, today’s half-yearly report from Meggitt (LON:MGGT) pushed its shares up 1.5 percent to 402 pence.
The aircraft parts manufacturer enjoyed a strong second half, seeing its revenues jump 19 percent with all of its major end markets contributing to growth. Meggitt said the military and energy end markets performed particularly well, achieving revenue growth of 10 and 30 percent respectively.
Underlying pre-tax profits were up 15 percent at £168.5 million and earnings per share advanced 14 percent to 16.4 pence, prompting the group to raise its dividend by 12.5 percent to 3.6 pence per share.
Meggitt added that the business has good momentum going into the second half with its closing order book up eight percent from the first half of 2011.
Other popular RNS statements included a technical report from Providence Resources (LON:PVR), which revealed that it has mapped another potentially significant oil target offshore Ireland.
This additional target is the Drombeg prospect offshore Cork, located in the southern Porcupine basin around 60 kilometres away from the Dunquin exploration prospect, which will be drilled in partnership with ExxonMobile next year.
Drombeg – currently nearing drill ready status – could span an area of 240 square kilometres, with hydrocarbon bearing sandstone reservoirs having thicknesses of 200-300 feet, according to analysts by Ikon Science.