The FTSE 100 made a slow start to the new trading week with opening enthusiasm from vaccine roll-outs and US stimulus giving way to the grim reality of mounting coronavirus cases.
Increasingly draconian measures are reportedly being contemplated by the Government to halt the spread of the more virulent form of Covid with worries intensifying that the NHS is close to being swamped.
At 8:50am, the benchmark FTSE 100 had lost around 0.35% at 6,849.83, reversing the positive trend of last week. Retailer JD Sports Fashion (JD.) led the FTSE leaderboard, rallying more than 4% to 887.6p after the company increased its profit forecast following strong online trading in the run-up to Christmas.
UK mid-caps also fell with holidays firm TUI (TUI) again bearing the brunt with a 6% decline, as the FTSE 250 drifted 0.1% to 21,045.37.
SHOES SHINE FOR JD
Trainers and sports stuff seller JD Sports upgraded its profit outlook amid robust second-half demand, including during the key Christmas run-in months of November and December.
JD Sports's pre-tax headline profit for the year through January was now anticipated to be at least £400 million, up from current expectations averaging around £295 million.
Heading the FTSE loser board was medical technology group Smith & Nephew (SN.) following the firm’s downgraded guidance. The company now anticipates a fall in fourth-quarter revenue amid a surge in Covid-19 infection rates.
Smith & Nephew's underlying revenue for the three months through December was seen falling by around 7%, bringing the fall for the full year to around 12%, sending the stock more than 3% down at £15.70.
Budget airline EasyJet (EZJ) inched less than 0.1% lower to 786p after it secured a $1.87 billion five-year term loan from UK Export Finance to strengthening its balance sheet.
Delivery services group Royal Mail (RMG) added 0.3% to 361.38p after confirming the appointment of current director Simon Thompson as chief executive of its UK business.
Stuart Simpson, who had been serving as acting CEO of the UK business, would leave the company at the end of January following a short handover period.
Residential landlord Grainger (GRI) fell 0.3% to 288p, having acquired a forward-fund build-to-rent development in Bristol for about £63.1 million.
Sports-betting and gaming group Entain (ENT) shed 1.4% to £14.55 on announcing that chief executive Shay Segev was standing down, either at the end of a six-month notice period or until a successor was in place.
Entain said the change had no bearing on its view of a recent takeover bid for the group by MGM Resorts International.
WRAP OF THE REST
Building materials group SIG (SHI) rallied 10% to 34p, having guided for a smaller-than-expected annual loss following a recovery in the fourth quarter.
SIG’s underlying operating losses for the year through December were expected in the range of £57 million to £61 million. Like-for-like sales in the fourth quarter grew 4% year-on-year, limiting the full-year fall to 13%.
Hardwearing boots maker Dr Martens unveiled plans to list on the London market to help push its expansion plans and internet sales. It is not clear whether the company plasn to raise any fresh funding at this stage.
The iconic fashion brand generated earnings before interest, tax, depreciation and amortisation (EBITDA) of £184.5 million in its last full year on £672.2 million revenue.
Student accommodation provider Unite (UTG) edged back 1p to £10.08 following news that it was offering students a discount on their rent in the wake of the UK’s new nationwide Covid-19 lockdown.
Students would be able to apply for a discount of 50% of their rent for a total of four weeks. The associated loss of rental income was expected to result in a reduction to EPRA earnings per share of up to £8 million, or 2p, for the 2021 financial year.
Consultancy company Science Group (SAG:AIM) jumped 6.9% to 309.9p as it upgraded its annual earnings expectations amid a rise in sales.
The company also announced the looming departure of finance director Rebecca Archer, to be replaced by Sameet Vohra, who was most recently interim finance director at fashion retailer Ted Baker (TED).
