UK shares ended the first week of the quarter much as they started it, with the conversation dominated by rising energy prices.

Brent crude finished above $83 per barrel for a gain of nearly $4 or 5% on the week, marking a three-year high.

In the event the much-awaited US September non-farm payroll data was a damp squib, sending markets in Europe and the US lower.

By the close the FTSE 100 index was the stand-out performer rising 18 points or 0.25% to 7,096, driven by advances in energy giants BP (BP.A) and Royal Dutch Sell (RDSB). Over the week the index eked out a 70-point or 1% gain.

CANADA DELIVERY FOR ROYAL MAIL

Royal Mail (RMG) has agreed to purchase Canadian freight company Mid-Nite Sun Transportation, one of the largest independent freight carriers in western Canada for around C$360 million (£210.5 million).

The combination of the two businesses will enable its General Logistics Systems arm to cover most of the Canadian population and create synergies as well as delivering further growth. The shares dipped 0.7% to 411p.

The UK’s leading owner, manager, and operator of student accommodation Unite (UTG) said it had let 94% of bed spaces across the portfolio, slightly below management’s prior expectations for 95%-to-98% occupancy.

Consequently, earnings per share is expected to be at the lower end of guidance of between 27p to 30p per share. The company will seek to mitigate the effect by targeting international students and cost savings. Unite said it fully hedged for energy costs for the year which represent around 5% of rental income.

At 30 September the USAF property portfolio was valued at £2.825 billion, representing a 1.1% like-for-like increase during the third quarter, while the LSAV portfolio was independently valued at £1.764 billion, an increase of 3.7% during the quarter. The shares dropped 4.5% to £10.53.

EARNINGS BEAT

Industrial parts electronics distributer Electrocomponents (ECM) said first half trading was ahead of expectations with like-for-like revenues up 31% compared with last year and 22% compared with pre-pandemic levels.

The company upped its full-year guidance saying it expected revenue growth and adjusted operating margin to be slightly ahead of prior guidance of double-digit-to-mid-teens like-for-like growth and a return to 2019/20 margins. The shares added 0.2% £10.77.

Engineering group Weir (WEIR) said it had been the victim of a ransom wear cyber attack at the end of the third quarter which impacted profitability and caused revenue deferrals.

It said capabilities had been gradually restored but operational inefficiencies are expected to impact the fourth quarter.

The company said full year profit before tax and amortisation was expected to be in the range of £230 million to £245 million. The shares dropped 3% to £16.07.

Shares in clothing and footwear digital retailer N Brown (BWNG:AIM) gained 2.5% to 48.5p after it said first half pre-tax profit was 7.1% ahead year-on-year to £24.2 million.

The company current trading was in line with expectations and that it was ‘well prepared’ for peak Christmas trading.

A list of FTSE 100 movers can be seen HERE

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Issue Date: 08 Oct 2021