The FTSE 100 started the week on the front foot, gaining 1.1% to 6,166, as investors continued to back an economic revival with the focus now turning the start of the US earnings season.

The risk-on stance saw metals, auto parts and industrials leading the market while telecoms and pharmaceuticals lagged.

Asian shares were higher overnight with China’s Shanghai Composite up 1.8% and Japan’s Nikkei 225 index 2.2% higher.

Brent oil prices traded 1% lower at $42.9 per barrel while gold prices were 0.5% to the good at $1,807 an ounce. The pound was unchanged trading at $1.26 against the US dollar.

CORPORATE NEWS

Global security company G4S (G4S) upped guidance for first half profits, saying it expects profits to be significantly above market expectations of £159 million, leading the firm to bring forward its results to the week beginning 20 July 2020. The shares shot 8.5% higher to 130p.

Miner Centamin (CEY) said it expected to meet full year guidance for production to be between 510,000 and 525,000 ounces of Gold. Second-quarter rose 54% to US$227 million as production grew 11% to 130,994 ounces. The shares ticked up 1.2% to 190p.

Shares in Paris-based clinical diagnostics company Novacyt (NCYT:AIM) surged 7.5% to 287.5p after the company said demand for its Covid-19 tests would continue into 2021 and first half revenues to 30 June 2020 stormed 900% higher to €72.4 million.

It estimated that earnings before interest, tax, depreciation and amortisation would be over €45 million. It ended the period with over €20 million of cash and said it intended to pay down all its debts making the company debt-free for the first time in its history.

Shares in fashion retailer Quiz (QUIZ:AIM) slumped 7.4% to 6.25p after the firm responded to media reports regarding an alleged instance of non-compliance with the national minimum wage at one of its Leicester factories, saying it has immediately suspended activity with the supplier in question pending further investigation.

EQUITY RAISES

Also on the downswing today were shares in digital chemistry group DeepMatter (DMTR), which dropped 8% to 1.7p after it proposed raising around £1.9m by a conditional placing of 130,830,001 shares at a heavily discounted 1.5p. It is also conducting a direct subscription of 11.7 million shares at the same price.

The funds are will be used to strengthen the balance sheet and fund expansion plans over the next 24 months.

Also tapping investors today was ethernet adapter cards supplier Ethernity (ENET:AIM) which detailed plans to raise £780,000 through the placing and subscription of shares at a discount of 37%. The shares dropped 13% to 16.5p.

A full list of risers and fallers can be found HERE

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Issue Date: 13 Jul 2020