London’s FTSE 100 trades 59 points lower at 7,048 on Thursday as markets around the world take a step back amid disappointment over Donald Trump’s failure to reach a deal with North Korea and weak manufacturing data from China.

The blue chip benchmark is also hit by several large companies trading without the rights to the latest dividend including AstraZeneca (AZN), off 2.2% at £61.46 and Micro Focus (MCRO), marked down 41p to £18.54.

On a busy day for corporate reporting, International Consolidated Airlines (IAG) climbs 13.4p to 613.6p as the British Airways owner reports a better than expected fourth quarter performance in the face of airline sector headwinds. Income-hungry investors also welcome a proposed €700m special dividend on top of an increase in the final dividend, positives which outweigh a warning from CEO Willie Walsh that operating profit before exceptional items will be flat in 2019.

Luxury car brand Aston Martin Lagonda (AML) veers off-road, the shares sliding 10.1% lower to £12.35 on a lurch into loss for 2018 after IPO-related costs and on news it has set aside a £30m fund to deal with any Brexit disruption.

RSA Insurance (RSA) reverses 4.1% to 505p as full year results come in below consensus expectations on most metrics. Operating profit of £517m was 8% south of the company-compiled consensus driven by a miss on underwriting profits. Shore Capital explains this is the first year since 2013 where RSA’s underlying results were down on the previous year due to higher weather costs and large losses in commercial lines, although ‘actions are being taken to improve reinsurance and exit some of the riskier lines of business’.

British American Tobacco (BATS) cheapens 2.5% to £27.26 despite an annual sales and earnings per share ‘beat’ and a positive outlook. The share drop perhaps reflects the fact BAT faces a Canadian appeal court judgement on a smokers class action damages suit which could see the tobacco titan having to shell out £6bn in compensation.

Pest control-to-hygiene giant Rentokil Initial (RTO) scurries 4.2% higher to 342.7p after posting strong 2018 results with sales, profits and cash all coming in ahead of its targets. CEO Andy Ransom is now guiding towards a slight increase in market expectations for 2019. Last year was a busy one for mergers and acquisitions (M&A), with a record 47 high-quality acquisitions enabling Rentokil to build scale and enter newer growth areas.

Elsewhere, European investors and asset manager Arrow Global (ARW) shoots 8.5% higher to 195p on forecast-beating 2018 results including a 12.4% hike in the full year dividend to 12.7p.

Investors lose their appetite for supermarket salads-to-pizzas provider Bakkavor (BAKK) as CEO Agust Gudmundsson warns he expects limited growth in the UK and a decline in margin in the first half the year amid subdued consumer confidence and inflationary pressures.

London-focused property developer Telford Homes (TEF:AIM) tumbles 16.9% lower to 291p on a warning 2020 pre-tax profits will be ‘significantly below’ 2019’s haul due to a subdued London market, margin pressure and a disappointing construction project delay in Finsbury Park.

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Issue Date: 28 Feb 2019