Share prices were higher in London and the rest of Europe on Thursday morning, despite more distressing scenes from Ukraine, as UK company earnings attracted early market attention.
The FTSE 100 index was up 13.71 points, or 0.2%, at 7,443.27 early Thursday. The mid-cap FTSE 250 index was up 56.84 points, or 0.3%, at 20,832.66. The AIM All-Share index was down 3.57 points, or 0.4%, at 1,024.12.
In mainland Europe, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was 0.4% higher.
More than 1 million people have fled Ukraine into neighbouring countries since Russia launched its full-scale invasion just a week ago.
‘In just seven days, 1 million people have fled Ukraine, uprooted by this senseless war,’ UN refugee chief Filippo Grandi said in a statement Thursday.
‘Unless there is an immediate end to the conflict, millions more are likely to be forced to flee Ukraine.’
The UN Refugee Agency has projected that more than 4 million Ukrainian refugees may eventually need protection and assistance, while the EU's crisis management commissioner has said the figure could reach 7 million.
U.K. MOVERS
In the FTSE 100, London Stock Exchange Group was among the best performers up 9.5% as the stock exchange operator hailed its Refinitiv acquisition after a series of cost setbacks following the high-profile purchase, which was completed at the start of last year.
For 2021, LSEG generated total income of £6.81 billion, up from a pro-forma £6.77 billion in 2020. Gross profit rose to £6.24 billion from £6.16 billion on the same basis. Adjusted pretax profit was £2.30 billion, up 27% from £1.81 billion. Statutory pretax profit was £987 million, up from £492 million.
LSEG said cost synergies following the Refinitiv acquisition were running ahead of target, with £151 million in annual run-rate achieved in 2021. It has identified an additional £50 million in cost synergies, raising its five-year target to at least £400 million.
Taylor Wimpey shares gained 2% after the housebuilder said it delivered a strong 2021 performance with results in line with its expectations.
For 2021, it posted pretax profit £679.6 million, up from £264.4 million in 2020 on revenue of £4.28 billion, up from £2.79 billion.
Further, 2021 saw a 47% increase in UK completions including joint ventures to 14,087, up from 9,609 in 2020, driven by good build performance and strong demand.
Taylor Wimpey declared a final dividend of 4.44 pence for 8.58p total, up from 4.14p in 2020. It also plans £150 million share buyback in 2022 to return excess cash.
At the other end of the large-caps, Polymetal International was the worst performer, down 25%. The Russian gold miner, alongside Russian steelmaker Evraz, was demoted from the FTSE 100 as part of the latest index review changes, FTSE Russell said late Wednesday. Evraz shares jumped 18% to 70.8p.
Shares in ITV were down 14% despite the free-to-air broadcaster reporting strong annual results and reinstating its dividend.
For 2021, ITV posted pretax profit of £480 million, up from £325 million in 2020, on revenue of £1.76 billion, up from £1.38 billion.
The London-based content producer proposed a final dividend of 3.3 pence for 2021, based on two-thirds of a notional full-year dividend of 5.0p. ITV intends to pay an annual dividend of at least 5.0p for 2022 which it expects to grow over time.
ITV set out an ‘ambitious’ target to double digital revenue to at least £750 million, driven by a doubling of streaming viewing, monthly active users and subscribers by 2026.
Further, ITV set out an acceleration in its strategy to ‘supercharge’ its streaming business.
ITV outlined digital-first content investment of £20 million in 2022 and £160 million in 2023 for ITVX subscription-funded streaming service. Total content investment will be around £1.23 billion in 2022, increasing to around £1.35 billion in 2023 and remain at broadly that level going forward. This includes BritBox UK content previously guided, and the following incremental investment, it added.
Shore Capital kept a 'buy' recommendation on ITV shares: ‘We regard [ITV's] valuation as extremely undemanding relative to the group's growth potential, cash generative qualities, strategic value in a consolidating industry and our expectation that free to air broadcasters will remain a very influential media channel and a core platform for brand advertising for some time to come. On this we continue to see strong upside potential.’
Shares in insurer Admiral shed 8% to £27.17 after its international business posted a loss and its dividend payout missed expectations.
Investors were anticipating a total dividend of 197p per share whereas the firm returned 187p per share excluding cash from the Penguin Portals disposal.
OTHER MARKETS
In Asia, the Japanese Nikkei 225 index closed up 0.7%. In China, the Shanghai Composite was ended down 0.1%, while the Hang Seng index in Hong Kong gained 0.6%. The S&P/ASX 200 in Sydney closed up 0.5%.
The pound was quoted at $1.3393 early Thursday, up from $1.3363 at the London equities close Wednesday.
The euro was priced at $1.1097, down from $1.1130. Against the yen, the dollar was trading at JP¥115.75, higher against JP¥115.60.
Brent oil was quoted at $118.37 on Thursday morning, sharply higher from $109.94 late Wednesday. The North Sea benchmark hit an intraday high of $119.84 - its highest level since 2012.
Gold stood at $1,931.34 an ounce, firm from $1,923.31 late Wednesday.
Thursday's economic calendar has a raft of services PMIs including the UK at 0930 GMT and the US at 1445 GMT. Eurozone unemployment data are reported at 1000 GMT.
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