The FTSE 100 moved firmly into positive territory as the Bank of England signalled it was open further loosening of monetary policy after agreeing to keep interest rates on hold for now.
The blue chip index advanced 0.9% to 6,730.30.
Food retailers rose in sympathy with Morrisons’ impressive results, with Tesco (TSCO) and Sainsburys (SBRY) gaining up to 4.5%.
MAIN NEWS OF THE DAY
In August, UK retail sales increased by 6.2% compared with August 2015, with the main contribution from food stores. Across the pond it was a different matter with US core retail sales down 0.3% against expectations for a build of 0.1%.
Bradford-based grocer Morrisons (MRW) made fresh gains as underlying pre-tax profit grew 11% to £157 million in the first half, with 2% like-for-like sales growth in the second quarter. This marked a third consecutive positive quarter in deflationary market conditions.
Business information group Informa (INF) revealed its plan to buy Penton Information Services for £1.2 billion, which would expand its exhibitions operations and boost its presence in the US.
Fashion retailer Next (NXT) became one of the biggest blue-chip fallers as profit before tax was down 1.5% to £342.1 million due to subdued trading in July. The company also flagged a forthcoming sales hit, as higher cost prices were caused by a weaker pound.
MID CAP RISERS AND FALLERS
Enhanced annuity provider JRP (JRP) jumped 19.1% higher to 115.9p as operating profit in the six months to 30 June beat expectations, due to the merger between Just Retirement and Partnership Assurance in April.
UK food wholesaler Booker (BOK) posted a good second quarter of sales at its stores Budgens and Londis. Investors were relaxed about declining tobacco sales, which were affected by a ban on small stores displaying these products.
Electronic equipment distributor Electrocomponents (ECM) climbed 15.9% after delivering solid organic sales progress and revenue, which was aided by a return to growth in North America.
Oil and gas company EnQuest (ENQ) failed to agree a deal to sell an interest in the Kraken development to Delek.
SMALL CAP RISERS AND FALLERS
Engineer Redhall (REDH) accelerated 17.7% to 10.3p following the government’s approval for the Hinkley Point nuclear power project.
Crawshaw (CRAW) warned of reduced like-for-like sales in its first half as a result of international football, adverse weather and Brexit vote. In a downbeat trading update, the firm said conditions remained difficult and are trying restore sales momentum. Investors jumped ship, causing the stock to crash 43.1% to 41.8p.
Multimedia content solutions provider Immedia’s (IME) subsidiary, AVC Immedia, won new contracts to supply FIFA with its Matchviewer tool, boosting its share price by 2.2% to 32.2p.
Israeli fashion business Bagir (BAGR) fell 14.4% as it reported falling revenue from the loss of a major client in Marks & Spencer (MKS) and announced a $8.1 million placing to pay off debt.
Purplebricks (PURP) was in positive territory after reporting encouraging trading and ‘little discernible impact’ following the Brexit vote. Its market share in the online estate agency market strengthened to 65% this month.
Engineer Ricardo (RCDO) rose 9.9% on optimistic results that reported a 44% increase in pre-tax profit to £33 million as revenue jumped by nearly a third.
Powerflute (POWR) sparked 20.7% to 89p after receiving a takeover offer from Bidco, which comprises investment funds advised by Madison Dearborn Partners.
Investors were disappointed with Global Energy Development’s (GED) widening operating loss of $2.8m and declining revenues, causing the firm to trade 10.7% lower.
Financial services provider Fairpoint (FRP) dropped 7.8% after exceptional costs and amortisation hit its pre-tax profit, which declined by half a million in the first half of the year.
Windows and doors provider Safestyle UK (SFE) said half-year pre-tax profit before tax increased by nearly 10% to £9.5 million, which was driven by a rise in average unit prices.
Asiamet Resources (ARS) said its feasibility studies on the Beruang Kanan Main copper deposit in Central Kalimantan, Indonesia was going well as it demonstrates excellent continuity of shallow copper mineralisation.