After a flat open, the FTSE 100 is drifting with investors nervous over what today’s political events will bring. The European Union is considering the UK’s request for an extension while at the same time MPs are mulling over the merits of a general election in December.

Markets dislike uncertainty, and the FTSE 100 has given up 0.3% or 20 points to 3,307 while the FTSE 250, generally considered more representative of the UK domestic economy, is down 0.4% or 82 points to 20,069.

BARCLAYS UP DESPITE BIG PPI BILL

Banking group Barclays (BARC) jumped 2.5% to 170p as it announced third quarter pre-tax profits of £4.9bn despite having fork out another £1.4bn for PPI mis-selling.

The lender warned that meeting its performance targets for this year and the next had become more challenging owing to lower interest rates and economic uncertainty.

However attributable profits of £1.78bn for the third quarter beat market expectations, sparking a small rally.

WPP RISES FOLLOWING STRONG QUARTER

Advertising giant WPP (WPP) rallied 5% to 964p after reporting strong third quarter trading.

On a like-for-like basis, reported revenues were up 1.9% to £3.29bn while the firm recorded a ‘significant improvement’ in North America and China, two of its key markets.

It also garnered net new business of $3.9bn during the first nine months of this year.

GLENCORE DIPS ON LOWER PRODUCTION

Swiss mining major Glencore (GLEN) slipped 0.6% to 231p following lower third quarter production of key commodities including copper and gold.

Year-to-date, copper production fell 4% to 1,015k tonnes as the miner prepares to shut down its Mutanda mine in the Democratic Republic of Congo.

The firm also reported a 20% fall in gold volumes to 622k ounces produced so far this year.

AIRTEL AFRICA JUMPS ON ‘STRONG’ RESULTS

FTSE 250 newcomer Airtel Africa (AAF) moved 3.6% higher to 58p as it reported a ‘strong’ set of half year results.

The Kenyan-based telecoms company recorded an 8.4% jump in revenues to $1.64bn in the first half, with growth in the second quarter accelerating to 9.8%.

The firm’s customer base grew by 10.4% to 104 million people, with growth across all services. Revenue in its Voice, Data and Mobile Money divisions were up by 3.2%, 37.8% and 46.5% respectively.

SYNTHOMER PLUNGES ON PROFIT WARNING

Investors in chemicals company Synthomer (SYNT) have had a morning to forget as the firm’s share price plunged over 13% to 269p following a profit warning. The firm blamed a ‘slower trading environment’ in its third quarter.

Chemicals firms are highly exposed to the economic cycle and Synthomer is no exception. The firm said that ‘growing weakness in the global economy has created a more challenging backdrop’ for the chemicals industry.

It also warned that if the current conditions persist through the fourth quarter, pre-tax profit for the full year was likely to be 10% below expectations.

HASTINGS DOWN ON CLAIMS FEARS

Insurance provider Hastings (HSTG) dropped 3.9% to 181p as it conceded that its claims ratio guidance for the year could be above the upper end of its 75-79% guidance range, if the elevated number of claims it has experienced continue.

In a third quarter trading update, the firm said it had performed broadly in line with market expectations, with policy growth of 5% to 2.84m reflecting continued strong retention rates.

ESSENTRA AND ASCENTIAL DISAPPOINT

Plastic- and fibre-product producer Essentra (ESNT) fell 1.9% to 415p as group like-for-like revenues dropped 2.9% in the third quarter.

The firm maintained that underlying revenue was ‘broadly flat’ despite short-term Brexit impacts and a tougher economic environment, and it maintained its full year profit expectations.

Business-to-business media and events company Ascential (ASCL) slumped 7% to 338p as it informed the market that its Money 20/20 China event - pencilled in for 4-6 December - will not be going ahead.

It said the decision to cancel the event had been taken due to a ‘short-term hiatus’ of international companies entering the Chinese financial technology (fintech) market.

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Issue Date: 25 Oct 2019