LONDON (Alliance News) - UK stocks are trading close to flat Friday as mixed macroeconomic data released this morning failed to stir a cautious market.
London's major equity indices have shown little direction Friday despite UK third quarter GDP figures matching expectations by recording its biggest quarterly rise since the second quarter of 2010.
The UK Office for National Statistics said that gross domestic product grew 0.8% in the third quarter from the previous quarter, slightly faster than the 0.7% expansion logged in the preceding three months and matching economists' expectations, according to FXStreet.com. The annual rate came in at 1.5%, in-line with expectations.
German data released Friday largely disappointed. German business sentiment weakened unexpectedly in October, according to reports from the IFO institute. The business climate indicator fell to 107.4 in October from 107.7 in September, while economists had forecast an increase to 108. The indicator measuring firms' assessment of the current conditions also came in below expectations, edging down to 111.3 in October from 111.4 in the previous month. This had been expected to rise to 111.6. The expectations index declined to 103.6 from 104.2 a month earlier. Economists had forecast an increase to 104.5.
By mid-morning, the FTSE 100 is flat at 6,712.08, the FTSE 250 is down 0.3% at 15,476.68, while the AIM All-Share index is up 0.2% at 802.01
At the individual UK stock level, Elementis, up 5.1%, is the biggest gainer on the FTSE 250. The speciality chemical company posted a 12% sales growth for the three months ended September 30, driven by strong growth in its coatings segment and personal-care division, and said it expects full-year earnings per share to be in line with market expectations. Elementis said that its trading performance has been resilient despite slower growth than generally anticipated.
AIM-listed Antrim Energy Inc., up 31%, is also a big gainer. The company said that routine maintenance of its North Cormorant Platform has been completed and oil production from its Cormorant East and Causeway fields has resumed, with the startup of electrical submersible pumps and water injection set to boost production at Causeway.
Conversely, Nyota Minerals, down 23%, is the biggest faller on the AIM All-Share index. The gold exploration and development company Friday said that its key strategic partner, FTSE 250-listed Centamin, has further reduced its shareholding in the company, a move that comes a day after Nyota detailed the structure of a sales agreement with another exploration company. Centamin sold 9.4 million shares in Nyota over Monday and Tuesday this week, lowering its holding to 141.6 million shares or 16.1% of the company's issued share capital, down from 17.2%. The move comes only five days after Nyota announced that Centamin sold 20 million shares in Nyota last week. Centamin shares are currently up 0.9%.
The price of gold is lower, currently at USD1,343.30 per ounce. Oil is also lower; Brent crude currently trades at USD106.72 per barrel.
Still to come in the data calendar Friday, US durable goods figures for September, delayed due to the US government shutdown, is scheduled for 1330 BST, ahead of October's Reuters/Michigan consumer sentiment index is expected at 1455 BST.
By James Kemp; jameskemp@alliancenews.com; @jamespkemp
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