The FTSE 100 opened virtually unchanged at 7,608.54 this morning as fears grow among economists that the UK could’ve gone into the red in last three months. Given business sentiment surveys in June for construction and manufacturing were pretty dismal, it’s believed that UK gross domestic product (GDP) will have shrunk in the second quarter.
There’s also confusion as to whether the Bank of England will cut interest rates to help the economy, after two members of the rate-setting Monetary Policy Committee instead suggested a rise in rates, while governor Mark Carney suggested the opposite.
Among FTSE 100 stocks, British Airways owner International Consolidated Airlines (IAG) is down 7.5% to 450p as the shares go ex-dividend.
Foods-to-fashion conglomerate Associated British Foods (ABF) is up 1.2% to £24.72 despite a decline in sales at its retail arm Primark.
In a trading update for the 40 weeks to 22 June, the family-controlled conglomerate reported a 3% rise in group revenue and reassuringly leaves its full year outlook unchanged, with ‘good profit growth’ expected from Primark.
Housebuilder Persimmon (PSN) softens1.7% to £19.55 after reporting a 4.5% drop in total revenue. In the first half to 30 June, the company officially handed over 7,584 homes compared to 8,072 homes for the same period last year, albeit at a slightly higher average price of £216,950.
While in the FTSE 250, Greek oil and gas company Energean (ENOG) is up almost 8% to 907p after agreeing to acquire another oil and gas firm, Edison E&P, for $750m.
Energean said the deal was done on ‘attractive metrics’ and will help it in its strategy to create an ‘independent, gas-focused [exploration and production] company in the Mediterranean.
Edison E&P’s portfolio includes producing assets in Egypt, Italy, Algeria, the UK North Sea and Croatia, as well as others in development in Egypt, Italy and Norway.
London-focused property developer Great Portland Estates (GPOR) is marginally higher, rising 0.3% to 702p, as it reported a lower vacancy rate (4.2%) in the three months to 30 June compared to the previous quarter (4.8%).
While admitting that current political uncertainty could lead to ‘economic turbulence’, chief executive Toby Courtauld remained bullish on London’s property prospects, and said the firm is still confident on ‘the long-term, enduring appeal of our capital city and its property markets to businesses and investors alike.’
The firm also gave an update on its ongoing share buyback, with £96.9m given back to shareholders to date.
Shares in wealth management firm Quilter (QLT) are up 0.2% to 145p after it told the market it is mulling over plans to potentially sell its life assurance business.
While stressing no decision has been taken, Quilter said it has launched a strategic review of Old Mutual Wealth Life Assurance, a business it inherited when it spun out of South African finance giant Old Mutual to become its own company.
