A surprisingly quiet news day on the corporate front on Wednesday sees UK markets firm as investors eye hopes that the coronavirus in China may have peaked.
That mild optimism saw Asian markets regain some of their recent lost ground overnight with Hong Kong’s Hang Seng rallying a full 1%. Japan’s benchmark Nikkei 225 and China's Shanghai Composite made 0.6% moves higher respectively.
The UK’ s benchmark FTSE 100 index was roughly 0.3% higher in early trade at 7,521.24, while the mid cap FTSE 250 rallied 0.54% to 21,763.59.
Major European markets also followed the up-trend set overnight on Wall Street.
EXPENSIVE TWEAK FOR BABCOCK
Defence contractor Babcock (BAB) upwardly tweaked its annual operating profit guidance, though it also warned of an £85m exceptional charge incoming.
Shares in the £2.7bn FTSE 250 firm fell more than 4% to 533p after admitting that needed restructuring work at its aviation arm and asset write-downs in its oil and gas business would run up an £85m one-off charge.
Underlying operating profit for the year through March was now expected to come in at between £540m and £560m, up from previous guidance of ‘around £540m’.
Homewares retailer Dunelm (DNLM) rallied more than 5% to £12.65 after it reported a 19% rise in first half profit and upped its annual guidance, on the back of higher footfall driving increased sales.
Contracts-for-difference trader Plus500 (PLUS) jumped more than 4% to 949.6p despite posting a 62% drop in annual profit, blaming calm market conditions.
Plus500 said increased market volatility had driven an improved performance in the second half, with the momentum continuing into the current year.
Supermarket chain Sainsbury's (SBRY) was broadly flat at 202.8p after announcing that the chairman of its banking unit, Roger Davis, was standing down.
Language services provider RWS (RWS) rallied more than 6% to 599p on announcing that it was on course to deliver results in line with its expectations, and generate more cash than it had hoped, following several contract wins.
Russian gold miner Polymetal International (POLY) drifted 0.6% to £12.86, despite it announcing a doubling of the ore reserves estimate at its Kutyn gold project in Russia.
FLOORED BY WARNING
Flooring retailer United Carpets (UCG:AIM) plunged 14%-plus to 4.5p after warning that its annual profit would miss current market expectations after a hoped-for bounce back following the decisive UK election failed to materialise.
Bonding products maker Scapa (SCPA:AIM) has also slumped, crashing 35% to 175p after it warned that its annual profit would fall short of market expectations. The company blamed cost pressures.
Revenue for the year through to 31 March was seen at around £306m, while trading profit was seen at about £28m, the company said. Consensus had been pitched for a £32.3m pre-tax profit, according to Refinitiv data.
Healthcare facility investor Primary Health Properties (PHP) stayed largely flat at 161.8p as it swung to a full year loss owing to negative asset revaluations. But investors took the mild positives from adjusted earnings improvement and a dividend lifted 3.7%.
