UK stocks opened higher on Tuesday thanks to increasing investor confidence that US lawmakers will push through a large stimulus package, while major miners released some positive dividend news.
By 8.50 am, the FTSE 100 was up 0.4% at 6,781.8 points, while the FTSE 250 index edged 0.3% higher to 21,474.4 points.
Mining titan BHP (BHP) softened 0.3% to £22.21 despite hiking its first half dividend by 55% to a record US$1.01 per share, having reported a rise in profit on higher iron ore and copper prices as well as record production at Western Australia iron ore.
‘Our outlook for global economic growth and commodity demand remains positive, with policymakers in key economies signalling a durable commitment to growth and signalling ambitions to tackle climate change,’ said chief executive Mike Henry.
‘These factors, combined with population growth and rising living standards, are expected to drive continuing growth in demand for energy, metals and fertilisers.’
Mining giant and commodities trader Glencore (GLEN) improved 2.5% to 289.5p after it said it would resume dividends in 2021 with a payout of 12 cents per share.
Glencore said it had navigated recessionary conditions in the first half of 2020, then benefited from a strong price recovery for most commodities in the second half, to deliver flat adjusted earnings before interest, depreciation, taxation and amortisation (EBITDA) for 2020.
SERCO SURGES HIGHER
Serco said the acquisition will ‘increase the scale, breadth and capability’ of its North American defence business and will give the group ‘a strong platform from which to address all major segments of the US defence services market’.
Shares in Safestore (SAFE) improved 3.5% to 808p as the self-storage group upgraded annual earnings guidance after first quarter revenue rose 11% amid an improvement in occupancy levels and storage rates.
IN OTHER NEWS
The sale was aimed at ‘achieving greater portfolio diversification on the part of Will Adderley’, though the Adderley family still holds sway at the curtains, cushions and kitchenware retailer with a 43.2% stake.
Elsewhere, gambling technology provider Playtech (PTEC) added 2.3% to 496.1p following news that it has signed strategic agreements with Greenwood Racing, which owns and operates the Parx Casino in Bensalem, Pennsylvania.
Disease test-kit supplier Omega Diagnostics (ODX:AIM) gained 4.4% to 83.5p following the publication of positive research that had analysed the performance of a Covid-19 test that it is helping to produce.
Infrastructure services provider Nexus Infrastructure (NEXS:AIM) dropped 4.9% to 155p after it said the Covid-19 pandemic was continuing to hurt its Tamdown unit, with trading in line with its downside scenario for the business.