UK stocks clawed back early losses on Friday lunchtime ahead of the release of key US employment data with February non-farm payrolls expected to show a gain of 182,000 compared with 49,000 in January.
Crude prices spiked as the OPEC+ group of oil producers surprised the market by deciding to maintain their supply limits. Markets had expected the cartel to resume production of up 1.5 million barrels per day.
Shares in oil majors such as BP (BP.) and Royal Dutch Shell (RDSB) gained around 2% while more leveraged stocks like Tullow Oil (TLW) and Enquest (ENQ) gained over 8%.
At 12pm the FTSE 100 index of leading stocks was up 0.4% at 6,674 points.
COMPANY NEWS
Shares in London Stock Exchange (LSE) were the worst performers on the FTSE, losing 9.3% to £86.02 in spite of a resilient performance in 2020 and an increase in the final dividend.
The company posted a 6% rise in total income thanks to a strong performance from its London Clearing House operations, while revenues from the FTSE Russell business were hampered by a fall in ETF asset levels in the first half.
In contrast, testing equipment maker Spirent (SPT) was one of the biggest gainers, leaping 7% to 245p after it announced the acquisition of US company octoScope for an initial $55 million.
OctoScope, which provides test solutions to the wireless telecom industry, generated revenues of around $20 million last year.
Shares in medical products maker Convatec (CTEC) were also among the best performers, gaining 2.6% to 194p after the firm reported ‘solid growth and good strategic progress’ in the year to December.
Revenues were 3.7% higher due to growth in Infusion Care and Continence & Critical Care despite a resurgence of Covid in the final quarter.
Temporary power provider Aggreko (AGK) said it was recommending an offer of 880p in cash from US private equity firms I Squared and TDR Capital, unchanged from the terms revealed a month ago.
The shares gained 1% to 899p, after surging 8% yesterday in anticipation of the news.
Component and tool-maker Essentra (ESNT) shares added 0.3% to 302p as revenues for the last year met market expectations and the firm flagged almost flat sales on a like for like basis in the final quarter.
However, the firm cautioned that the recent appreciation of the pound, particularly against the dollar and the euro, ‘is causing a headwind in the year thus far’.
Retail group Frasers (FRAS) also had a warning for shareholders, following the Chancellor’s latest decision on business rates. The firm described the new support package which lasts until next March as ‘near worthless’, saying it would make it ‘nearly impossible to take on ex-Debenhams sites with the inherent jobs created’.
The company went further, saying it would ‘need to review our entire portfolio to ascertain stores that are unviable due to unrealistic business rates’. Nevertheless, the shares added 1.6% to 471.8p.
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