UK stocks moved the same way as their Asian counterparts this morning, opening higher after the spread of coronavirus in China appeared to have slowed.
Following a small fall in the number of new cases and amid hopes of fresh Chinese stimulus measures, Japan’s Nikkei 225 rose 0.9% while the Hang Seng index in Hong Kong gained by 0.4%, although China’s Shanghai Composite dipped 0.2%.
Commodities also reacted well, with Brent crude futures up 0.7% to $58.16 per barrel and gold up 0.5% to $1,608.26 per ounce.
Shortly after opening, the benchmark FTSE 100 index was up 0.6% to 7,426.51.
The rise in markets comes despite Apple’s warning over the coronavirus affecting its supply chain, with a rising number of market commentators suggesting investors could be getting complacent with regards to the impact the virus might have on global supply chains and economic growth.
RPS PLUNGES ON BIG PROFIT DROP
Engineering and environmental consultancy RPS (RPS) plunged 15% to 145p after its statutory pre-tax profit fell a whopping 88% to just £4.8m in 2019, compared to £41m the previous year.
In its full year results to 31 December, RPS said trading had been affected by a difficult first half in Australia with spending held back by the election cycle, while its UK services arm was impacted ahead of a new water regulatory cycle in England and Wales.
Revenue fell to £612.6m from £637.4m in 2018, with fee income falling to £556.5m from £574.2m the previous year. But the firm said it expects results to be more ‘stable’ this year, with the year ahead broadly in line with 2019 and growth anticipated to accelerate in 2021.
METRO BANK AND MONEYSUPERMARKET BOSS UPDATES
Meanwhile challenger bank Metro Bank (MTRO) and price comparison website Moneysupermarket.com (MONY) both made announcements regarding their chief executives.
Metro Bank shares dipped 1.2% to 192p as said it had appointed Dan Frumkin as its new chief executive officer. Frumkin had been serving as the company's CEO in an interim capacity since 1 January, having joined last September as chief transformation officer.
Moneysupermarket.com fell 2.2% to 310p as it confirmed that chief executive Mark Lewis planned to stand down to ‘pursue his career in a new direction’.
No departure date has yet been agreed but Lewis, who took the reins three years ago, indicated that he wanted to ensure a smooth transition to his successor.
HEDGE FUND TO VOTE AGAINST SIRIUS OFFER
Potash miner Sirius Minerals (SXX) gained 1.27% to 5.16p after hedge fund Odey Asset Management said it would vote against the 5.5p per share offer tabled by FTSE 100 mining giant Anglo American (AAL).
Odey, which owns 1.29% of Sirius, said it would vote in favour of any bid at 7p or above but it rejected the current offer which it said ‘does not represent fair value for shareholders in Sirius’.
FTSE 250 gold miner Hochschild Mining (HOC) jumped over 6% to 170p after reporting a big hike in annual profit following better-than-expected production.
For the year ended 31 December 2019, pre-tax profit rose 89% to $103.4m and revenue climbed 7% to $755.7m on-year.
Production of 477,400 gold equivalent ounces exceeded guidance of 457,000 ounces, driven by record production at the company's Inmaculada and at San Jose mines.
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