The UK’s equity markets made firm gains in early trading on Monday, helped by positive economic data coming out of China and the US.
The benchmark FTSE 100 rallied around 1% in early deals to 6,092 as data showing slowing Chinese factory deflation in July brewed optimism around a post-pandemic economic rebound. This followed better-than-expected jobless numbers in the US on Friday and extend help for the unemployed.
Energy stocks also provided a lift, tracking a jump in oil prices, with oil majors BP (BP.) and Royal Dutch Shell (RDSB) both among Monday’s larger gainers, up around 3% to 3.5%.
The mid-cap FTSE 250 gained 0.9%, led by industrial, consumer discretionary and financial stocks, but there was limited corporate news to provide direction.
RETAILER SECURES FUNDING
Keeping retail on the news agenda was fashion brand Superdry (SDRY), which jumped more than 16% to 136.95p after agreeing a new £70 million lending facility to get it through the coronavirus crisis.
Outsourcing group Capita (CPI) rose 4% to 38.56p after confirming that it had received an extension to its contract with Transport for London. The deal, worth £355 million, will run from October 2021 to October 2026.
Shipping services provider Clarkson (CKN) rallied 12% to £23.60, having reinstated its dividend after a strong performance in its broking division bolstered its first-half profit.
Clarkson would pay the equivalent of its deferred 2019 final dividend of 53p per share as an interim dividend. It also declared a further interim dividend of 25p, unchanged on-year.
Transport company FirstGroup (FGP) jumped almost 8% to 41.81p as it welcomed an eight-week extension by the UK government of funding for the bus industry.
SOFTWARE DEALS
Acquisitions continue to bubble away in the UK software sector as companies take advantage of low-cost debt and supportive investors to invest for growth. The most meaningful could come from FTSE 100 engineering design platform play Aveva (AVV), which nudged 1% to £45.43 after confirming talks with Softbank-owned data analytics firm OSIsoft in a potential $5 billion-odd deal.
Red tape and governance platform Ideagen (IDEA:AIM) continued its own policy of making strategic bolt-on acquisitions, agreeing a £15.6 million deal for quality management platform operator Qualsys.
Ideagen shares rose nearly 3% to 181p.
Elsewhere, identity data intelligence platform specialist GB Group (GBG:AIM) gained 2.5% at 749p after flagging better-than-expected business in a figure-free first quarter update to 30 June.
Power generation group ContourGlobal (GLO) fell 1.8% to 197.8p despite maintaining a commitment to grow its annual dividend by 10% after reporting a higher first-half profit.
REVALUATION BOOST
Life sciences company investor Syncona (SYNC) shed 0.3% to 255.3p, even as it posted a positive return in the June quarter amid an increase in the value of its portfolio companies.
Syncona's net asset value return for the three months through June was 13.5%, with net assets of £1.41bn, or 210.7p per share.
Mining company Polymetal International (POLY) edged up 0.1% to £20.14 amid news it had formed a joint venture with Rosgeology to carry out exploration in Bashkortostan, Russia.
Subprime lender Morses Club (MCL:AIM) jumped 9.7% to 55.97p on announcing that its collections and sales were both on an improving trend.
Pharmaceutical services provider Open Orphan (ORPH:AIM) gained 5.6% to 14.18p after it won a £4m contract from a 'top three' global pharmaceutical company.
Clinical artificial intelligence technology group Sensyne Health (SENS:AIM) fell 2.7% to 31.15p, having reached a settlement agreement with former chief financial officer Lorimer Headley.
