Leading UK shares were clinging above the 7,000 level as commodity stocks provided support and Tuesday's comments about interest rate hikes from US Treasury Secretary Janet Yellen faded into the background.
At midday, the FTSE 100 was 1.15% ahead at 7,002.96, led by mining group Anglo American’s (AAL) 3.6% gain at £31.88, with BHP (BHP), Glencore (GLEN) and Rio Tinto (RIO) also ahead. Other cyclical stocks were in favour too, with construction groups CRH (CRH) and Ashtead (AHT) joining the top FTSE 100 risers.
On a relatively quirt day for corporate news investors appeared to be taking their lead from underlying confidence that is building as the vaccination programmes throughout Europe gather momentum.
The pound continued its run of strength against the dollar at $1.3912 while oil was also on the up, with Brent crude at $69.68 a barrel.
ITV HOPES FOR LOVE ISLAND AND FOOTIE BOOST
Free-to-air broadcaster ITV (ITV) edged 0.4% higher to 124.85p after the company said it expects to see stronger growth in the second half of the year, having reported a 2% uptick in first quarter revenue amid an ongoing rebound in the advertising market.
The company anticipates firm advertising interest on the back of this summer’s delayed Euros football tournament, which starts in June, and it hugely popular reality TV show Love Island.
Online fast-fashion retailer Boohoo (BOO:AIM) drifted 1% to 322.99p, despite head-turning annual results showing sales up 41% to almost £1.75 billion and 38% adjusted pre-tax profit growth to £150 million.
The shares were marked down as the company guided for slower sales growth of 25% this year, below the 29% called for by consensus.
Boohoo also warned the benefits seen from reduced returns over the last twelve months will begin to unwind this year, said it is ‘still experiencing significantly elevated levels of carriage and freight costs’, and cautioned that investment in newly-acquired brands Oasis, Warehouse, Debenhams, Dorothy Perkins, Burton and Wallis will dilute margins this year.
INSURERS INCH HIGHER
Insurer Direct Line (DLG) added 0.5% to 288.44p, even as it reported a 4.7% fall in first quarter gross written premium revenue. Looking ahead, Direct Line touted ‘encouraging’ early indications that motor market premiums are stabilising.
Rival insurer Hiscox (HSX) was bid up 0.4% to 807.8p after posting a 6.3% rise in first quarter premium revenue.
Elsewhere, building materials group SIG (SHI) rose 5% to 49.44p after upgrading annual guidance, having achieved a stronger-than-expected start to the year, with sales in the four months to April up 29% year-on-year.
Banking group Virgin Money UK (VMUK) slumped 5% to 190.5p despite swinging to a first half profit after a drop in bad debt charges offset a weaker operating income.
Pre-tax profit for the six months through March amounted to £72 million, compared to year-on-year losses of £7 million.
PROFIT WARNING HITS
McBride (MCB) fell 19% to 75.96p after the private-label household-to-personal care products maker warned full year profits are now expected to be around 15% lower than the previous year amid rising input costs and revenue volatility.
RHI Magnesita (RHIM) rose 1.6% to £45.40 as the refractory products play announced a further share buyback and assured it is performing in line with market expectations, with a recovery in sales offset by supply-chain disruptions.
The company said its expectations for 2021 adjusted earnings before interest, tax, depreciation and amortisation remained in line with market forecasts, based on company-complied consensus of €310 million.
Property investor UK Commercial Property REIT (UKCM) firmed 0.7% to 78.06p as it hiked its first quarter dividend after the value of its portfolio strengthened.
