There is welcome positive news for retail investors on Tuesday after largely upbeat trading updates from Associated British Foods (ABF) and JD Sports Fashion (JD.) lift an otherwise gloomy sector backcloth.

AB Foods jumps to the top of the FTSE 100 leader board in early trade, up 4% to £26.88, after reporting a resilient retail performance from its discount chain Primark. The figures show a 1% decline in first half profit, largely due to previously flagged reductions in sugar revenues.

PRIMARK STANDS OUT

But Primark once again stands out among the group’s results. In the 24 weeks to 3 March, Primark saw 3% growth in its UK like-for-like sales, which strip out the effect of new store openings.

That firm performance was bettered by JD Sports, which on Tuesday reported a rough 25% rise in full year headline pre-tax profit as demand for athletic and leisurewear clothing remains firm in an otherwise gloomy British clothing sector.

The figures send JD Sports shares soaring more than 7% to 378p, the second biggest riser across the entire FTSE All Share index.

EMERGING MARKETS BOOST

Emerging markets-focused asset manager Ashmore Group (ASHM) is another strong riser today after showing a 10% increase in assets under management in its third quarter. That’s driven by the strongest net inflows since June 2013, according to the company.

Elsewhere, UK roadside recovery service and insurer AA (AA.) posts a 3% drop in core profit following a year which saw the unexpected departure of the firm’s executive chairman and prompted a strategic review.

But that’s better than many investors were hoping for and is met by renewed buying, sending the share price nearly 4% higher to 117p.

Industrial steel and mining group Evraz (EVR) is also firmly higher among FTSE 100 stock on Tuesday, bouncing back from ongoing trade war concerns between the US and China. It stock rallies more than 4% to 381.3p, valuing the business at more than £5.4bn.

Going the other way is consumer goods giant Reckitt Benckiser (RB.), down 3% at £58.22, the FTSE 100’s biggest faller in early trade.

KEY COMMODITIES

Gold prices are steady on Tuesday as the US dollar remains on the back foot, with the metal supported by festering worries over US-China trade tensions.

Oil prices rise amid worries there could be a high risk of disruptions to supply, especially in the Middle East.

Among smaller companies, drug development business ImmuPharma (IMM:AIM) collapses as latest trials appear to show that its Lupuzor lupus treatment proves an flop.

Phase III trials show barely any benefit for test patients versus placebo, smashing the stock, the share price crashing 85% to 23p, effectively wiping £170m off the companies market value to barely £30m.

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJBell logo

Issue Date: 17 Apr 2018