Last checked at 
(Alliance News) - Stock prices in London were higher midday Monday, as investors remain optimistic over a potential UK-EU deal on the Northern Ireland protocol.
The FTSE 100 index was up 62.62 points, 0.8%, at 7,940.79. The FTSE 250 was up 116.23 points, 0.6%, at 19,812.76, and the AIM All-Share was up 2.08 points, 0.2%, at 854.71.
The Cboe UK 100 was up 0.7% at 794.95, the Cboe UK 250 was up 0.7% at 17,335.36, and the Cboe Small Companies was down 0.1% at 14,031.23.
"There was volatility in the pound early on Monday as traders waited to see if a deal might be done on the Northern Ireland protocol in the face of opposition from the eurosceptic wing of the Conservative party and the [Democratic Unionist Party]," said AJ Bell analyst Russ Mould.
The pound was quoted at USD1.1981 at midday on Monday in London, up compared to USD1.1947 at the equities close on Friday. The euro stood at USD1.0565, up against USD1.0545. Against the yen, the dollar was trading at JPY136.25, down compared to JPY136.31.
UK Prime Minister Rishi Sunak will hold face-to-face talks in Windsor, Berkshire, with the European Commission President Ursula von der Leyen on Monday, as Sunak looks to finalise a deal to fix issues with the Northern Ireland protocol.
No 10 raised the prospect that the talks could produce a breakthrough moment after months of negotiations with Brussels about fixing the protocol.
Monday's stock market gains contrast with a tough session for global equities on Monday, in the wake of a red-hot US personal consumption expenditures index reading.
According to the US Bureau of Economic Analysis, the personal consumption expenditures index increased 5.4% on-year in January. The rate of PCE inflation quickened from 5.3% in December and came in markedly ahead of the FXStreet cited consensus of a slowdown to 4.9%.
Core PCE inflation, the Federal Reserve's preferred price gauge, quickened to 4.7% on-year in January, from 4.6% in December. The figures suggest inflationary pressures are proving stickier than ideal, and may suggest more rate hikes are in the offing by the Fed.
Stocks in New York were called higher, as sentiment looks to rebound following last week's PCE reading-induced equity market slump. The Dow Jones Industrial Average is called up 0.4%, and the S&P 500 and the Nasdaq Composite both called 0.5% higher.
In European equities on Monday, the CAC 40 in Paris was up 1.6% and the DAX 40 in Frankfurt was up 1.5%.
In the FTSE 100, Primark owner Associated British Foods gained 1.3%.
AB Foods said it expects interim sales to be over 20% ahead of the last year at actual exchange rates, or over 16% ahead in constant currency. It now expects adjusted operating profit to be "broadly" in line with the previous year.
Primark interim sales are expected to be GBP4.2 billion, or 19% higher than the year before.
The high street retail division is still facing "significant" cost pressures, but has seen more resilient consumer spending than previously forecast. It raised expectations for its full year, now predicting adjusted operating profit and adjusted earnings per share to be in line with the previous year. AB Foods ends its financial year in September.
While input costs have eased somewhat, AB Foods noted the continuing presence of macroeconomic headwinds, which could weigh on consumer spending in the months ahead.
Index peer Bunzl gained 2.5%, after it hailed "another excellent year".
The London-based distribution services company said annual revenue rose 17% year-on-year to GBP12.04 billion from GBP10.29 billion. Pretax profit increased 12% to GBP634.6 million from GBP568.7 million.
Bunzl increased its dividend by 10% to 62.7 pence from 57.0p.
The company left guidance for 2023 unchanged from its December trading statement. Back then, it said it expected a "resilient" adjusted operating profit, with its operating margin "slightly higher than historical levels".
Separately, Bunzl said it has agreed to acquire Arbeitsschutz-Express, a German distributor of workwear and personal protection equipment. It also said it completed the acquisition of Capital Paper Products, a Canadian packaging company.
Both acquisitions are for undisclosed sums. Bunzl added that Arbeitsschutz-Express generated a revenue of EUR41 million in 2022, while Capital Paper had a revenue of CAD26 million, around GBP16 million in 2021.
Among mid-caps, Dechra slumped 15% on a profit warning.
The veterinary pharmaceutical company said revenue in the six months to December 31 rose 14% to GBP377.4 million from GBP332.4 million a year before.
"The global companion animal healthcare market has returned to more normalised levels of growth following the extraordinarily high rates seen during the Covid-19 pandemic, and against that context our performance has been robust," the firm said.
Pretax profit fell sharply to GBP29.7 million from GBP53.4 million, as operating profit fell to GBP44.6 million from GBP57.4 million a year before.
Dechra declared an interim dividend of 12.50 pence each, up 4.2% from 12.0p a year prior.
Looking ahead, Dechra now expects full year underlying operating profit to be at the lower end of analyst expectations.
However, Liberum said its forecasts are "more conservatively set than consensus", expecting 1% to 2% lower earnings before interest and tax compared to consensus. Liberum expects full year revenue of GBP779.8 million.
Liberum added: "The outlook reports from Dechra's Animal Health peers are mixed. We are seeing resilient performances in the companion animal market, particularly in the US and amongst innovative medicines, but softness in the food producing animal market."
On AIM, Elixirr International surged 22%. The consultancy firm said 2022 was a "strong year", with all metrics to be "in line or above" market expectations.
Revenue is expected to rise 40% to GBP70.7 million, within previous guidance, and adjusted earnings before interest, tax, depreciation and amortisation are expected to amount to GBP20.4 million - which is in line with Elixirr's guidance of exceeding GBP20 million.
It said 2023 has started "strongly" with an acceleration of organic growth in the first quarter, and January seeing record monthly revenue.
Brent oil was quoted at USD82.70 a barrel at midday in London on Monday, up from USD81.83 late Friday. Gold was quoted at USD1,811.01 an ounce, flat against USD1,811.07.
Still to come on Monday's economic calendar, there is data from US pending home sales index at 1500 GMT.
By Sophie Rose, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
