As the US Federal Reserve keeps interest rate rises on ice, the UK’s FTSE 100 leading basket of stocks was up 0.4% to 7,433.88 with global markets reacting positively to the decision from America’s central bank.
In the FTSE 100, shares in Russian miner Evraz (EVR) have had a tough morning, falling 4.6% to 645p after it said a group of investors had finally sold their 1.7% stake in the company at 635p, below its current market price.
DIXONS CARPHONE PLUMMETS
But the big story comes from the FTSE 250, with electricals and mobile retailer Dixons Carphone (DC.) the big faller in early morning trading with its shares down a whopping 21% to 99p after it reported a huge drop in profit and warned of another big fall this year.
For the year to 27 April, the firm reported a pre-tax profit of £298m, down from £382m the previous year. While it reported a 1% increase in like-for-like group revenue, the market is much more fixated on the drop in profit, and the warning that its mobile business will make a ‘significant loss’ this year.
Its shares have been on a consistent downward spiral since 2016, having been as high as 500p at the end of 2015, with its mobile business in particular struggling because customers aren’t upgrading their mobile phones as often as they used to.
DUNELM IN THE SUN
Things were better for another FTSE 250 constituent though, with Homewares market leader Dunelm (DNLM) shares trading 5.1% higher at 950p as it changed its full-year forecasts and now predicts its financial year will be better than expected.
In an upbeat trading update, the firm said ‘unseasonably favourable’ weather conditions and a weaker comparable period has led to strong like-for-like growth compared to this time last year.
As a result, it now expects its full-year pre-tax profit to be in the range of £124-126m. The firm had previously said in April that it expected profit to beat analysts’ expectations of £116-119m.
GOLD SHARES RALLY
Listed gold miners have also done well this morning after the gold price hit a five-year high at $1,385.40 per ounce, due to the Fed’s statement last night where it kept the door open for further interest rate cuts.
Fresnillo (FRES) was the biggest riser as its shares jumped 6.6% to 877p, with Centamin (CEY) up 5.8% to 111p and Hochschild Mining (HOC) up 4.7% to 184p.
At the smaller end of the stock market, AIM-listed shares in specialist building services provider Premier Technical Services (PTSG) have soared 140% to 209p after it agreed a £265m deal to be taken over by investment bank Macquarie.
Under the terms of the deal, Premier Technical shareholders will be received a 210.1p per share cash payout for each share they own, a stonking 138% premium to yesterday's 87p close.
