The FTSE 100 starts Tuesday on the back foot as reports of a delay to Brexit help lift the pound. A big chunk of the sales generated by constituents of the index comes from overseas. Stronger sterling means they carry less weight in relative terms. Early on the FTSE is down 0.9% to 7,121.51.
Miner Fresnillo (FRES) slumps 8.8% to 890.3p as it reports a sharp decline in annual profits as record silver, lead and zinc sales volumes were offset by lower prices. The miner also warned of another 'challenging year.'
For the 12 months ended 31 December, pre-tax profit falls 34.7% to $483.9m, while revenue is up 0.5% to $2.10bn.
The poor performance was blamed on decline in commodity prices, higher costs and lower than expected silver output.
Housebuilder Persimmon (PSN) recovers some of the ground lost yesterday on reports of a threat to its ability to sell houses under the Help to Buy scheme. The shares rise 1.6% to £23.89 as it posts a 13% rise in annual profit as it builds more properties and sells them for a higher price.
The company also appoints Dave Jenkinson as its new chief executive. Jenkinson had been serving as interim CEO since November.
Pre-tax profit for the year through December is up 13% to £1.09bn, as revenue climbs 4% to £3.74bn. Chairman Roger Devlin says the business is ‘changing our pay and incentives to include greater emphasis on both quality and customer care with plans that are more rigorous than we have had in the past’.
Emerging markets bank Standard Chartered (STAN) unveils profit roughly in line with expectations as it announces a new round of cost cutting and plans for more generous dividends. Its shares dip 0.6% to 615.4p.