The FTSE 100 index finished the day breaking through the 7200 level to close 59 points or 0.8% higher at 7,220 points, taking it above its pre-Covid high.
The gains were helped by a softer than expected reading in US core CPI numbers, meaning American inflation may be peaking. The Dow Jones Industrial Average Index responded positively to the CPI data, trading 0.5% higher, whilst the Nasdaq Composite Index dipped into negative territory falling by 0.4%.
Elsewhere crude oil gave back early gains following a report the US would encourage OPEC to increase production at a more rapid pace.
COMPANY NEWS
Shares in engineering company Spirax-Sarco (SPX) topped the FTSE 100 leader board, closing the day over 4% higher at £157.65.
The thermal energy specialist registered a 42% increase in first half operating profit to £162.9 million on a like-for-like basis, although currency headwinds reduced the reported growth rate to 37%.
The firm saw strong growth across its business due a recovery in global industrial output, as well as strong vaccine-demand for its Watson-Marlow pump and fluid technology products.
Shares in car and house insurer Admiral Group (ADM) had a volatile day’s trading, but finished the session up 4% at £35.89.
The company posted a 76% increase in first half pre-tax earnings to $482.2 million thanks to increased policy numbers, lower claims frequency due to the pandemic and a large release of prior-year reserves.
In a move designed to appeal to income investors, the group also announced a 62% increase in the interim dividend to 115p, and a special dividend of 46 pence per share.
‘It’s been a half year of good execution for Admiral. By and large, we’ve done the right things more often and a bit earlier than most’, said chief executive Milena Mondini.
Shares in cyber-security company Avast (AVST) were in demand finishing the day ahead by 3.48% at 588p in response to news that it had reached agreement with NortonLifeLock on a sweetened bid for the company.
Under the terms of the new deal, for each Avast share investors will receive $7.61 in cash and 0.03 of a new share in NortonLifeLock.
The revised deal raises the cash component to 90% and represents close to a 21% premium to the Avast share price on 14 July, before the initial approach.
Shares in London Stock Exchange (LSEG) continued their recent run rising 2.2% to trade at 8024p. Interim results posted last Friday showed strong earnings growth and allayed concerns regarding the integration costs associated with their $27 billion acquisition of data company Refinitiv. Cost synergy targets for the acquisition have been increased from £88 million to £125 million.
Aerospace firm Meggitt (MGGT) gained 16% to close at 830p as American aerospace firm TransDigm emerged with a 900p per share offer, rivalling Parker Hannifin’s existing 800p offer.
Insurance and pensions group Phoenix (PHNX) closed the session down 2.1% at 685p despite reporting a 46% increase in first half operating profit to £527 million thanks to several acquisitions including the Standard Life brand.
Cash generation was £872 million, more than double last year’s level, and the firm said it was on track to hit the top end of its target range of £1.5 billion to £1.6 billion of cash by the year-end.
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