UK stocks traded sideways on Wednesday as a sixth round of talks began in Brussels over Britain’s post-Brexit trade relationship with the EU.
Elsewhere, the number of new Covid cases in Germany hit the highest level since April leading the government to rule out any further loosening of lockdown restrictions. At the same time Spain and the Netherlands have seen the number of new virus cases rise in recent weeks, reigniting concerns over economic growth this quarter.
The FTSE 100 index of leading stocks edged down 2 points to 6,074 with weakness in mining shares offsetting gains for selected travel and leisure stocks.
On a thin day for company news, mining giant Rio Tinto (RIO) lowered its full year refined copper output target due to delays restarting the smelter at its Kennecott mine in Utah after ‘unexpected issues’ appeared during routine maintenance
The firm hopes to have the plant back up and running in two months but cut its production guidance for refined copper to 135 to 175 kt from 165 to 205 kt previously. Shares gave up 0.8% to £47.57.
Lighting firm Luceco (LUCE) raised its full year guidance for the third time in as many months, saying it now sees operating profits of ‘at least £23 million’ against ‘at least £18 million’ previously thanks to market share gains with online/multi-channel capable customers and in consumer/DIY markets where demand has been 'robust’.
The company saw a steady improvement in demand during the second quarter and said it had ‘good visibility’ for the third quarter. It now expects like for like sales to grow by low single digits thanks to some channel restocking and higher demand from professional and wholesale customers.
The news sent shares up another 12% to 178p and is likely to lead to another round of earnings upgrades from analysts.
Shares in compliance and energy services firm Sureserve (SUR) also climbed 12% to 47p after it posted a positive trading update for the period from April to August.
The group has won 21 new contracts so far in the second half with an annualised value of £16 million, adding £40 million to the order book and taking it to a seasonal high. It also paid off all its borrowings at the end of July and said it was considering a ‘sustainable’ dividend policy which would be more than covered by ‘significant earnings per share and regular recurring cash flows’.
Meanwhile, below most investors’ radar, Saudi financial group Mithaq Capital more than doubled its stake in the world’s biggest litigation funder Burford Capital (BUR) this week, taking its holding from 5.1% to 10.5%.
In addition to its stake in Burford, Mithaq owns 8.7% of the shares of airport services firm John Menzies (MNZS).
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