UK markets make modest gain in early trade on a fairly quiet Thursday for corporate news, the FTSE 100 nudging around 20 points higher at 7,488.
Among the companies to grab investor attention is sofas retailer DFS Furniture (DFS) as the group reports a big hit to profits in the year to 31 July. The decline comes in what the company calls a ‘very challenging’ UK furniture market.
Big ticket purchases, such as lounge furniture, are often the first to decline when consumer spending is pinched. The market takes flight at the news, selling down shares in the company by nearly 5% to 214.25p.
Strengthening hurricane risk in the Gulf of Mexico leads to staff evacuations by both BP (BP.) and Royal Dutch Shell (RDSB). Forecasts suggest that Tropical Depression 16 will move close to the eastern region over the weekend.
Share prices of both oil giants remain robust in the face of this possible delay to output work, remaining largely flat at 487.25p and £23.37 respectively.
Oil prices stabilise on Thursday on expectations that Saudi Arabia and Russia will extend production cuts, although record US exports continue to drag on the market.
EX-DIVIDENDS ANCHOR FTSE
Thursday is a busy day for companies going ex-dividend which means investors will lose the right to the next payout. FTSE 100 heavyweights on today’s list include insurer Aviva (AV.), property investor British Land (BLND) and DIY chain Kingfisher (KGF).
Next (NXT), Smith & Nephew (SN.) and advertising group WPP (WPP) will also trade without entitlement to their latest dividend, trimming 3.5 points off the FTSE 100, according to calculations by Reuters.
In other news, the Financial Reporting Council has closed its investigation into audit firm PricewaterhouseCoopers (PwC) over its audits of Barclays (BARC) in the years during and after the global financial crisis.
New car registrations in Britain fell 9.3% in September, making it highly likely that sales this year will be down for the first time since 2011, according to preliminary numbers from an industry body.
UK-based theme park operator Merlin Entertainments (MERL) has approached marine park operator SeaWorld Entertainment about a potential deal, according to reports. Shares in the company edge 1.2% higher to 454p.
REVOLUTION FACING BATTLE
Nightclub operator Deltic Group has set out its plans to merge with one of the UK's best-known bar chains, Revolution Bars (RBG:AIM), a private investor favourite in the past.
In August, Revolution rejected Deltic's offer, but the nightclub operator is now appealing directly to the firm's shareholders. Deltic is suggesting a combination that would leave Revolution shareholders with 65% of shares in the business, with Deltic taking 35%.
Investors seem so far unmoved, Revolution stock barely budging, off about 1.5% at 207.5p.
Air fares have reported to have increased by up to 43% since Ryanair (RYA) began cancelling thousands of flights two weeks ago, according to a new study by travel website Skyscanner.
Facebook reports profits in Britain in 2016 of £58.4m after the introduction of anti-profit shifting measures. But the modest rise in its tax bill shows the challenge Europe faces in working out how to tax technology giants.
