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(Alliance News) - Stock prices were slightly higher at midday on Wednesday as investors mulled the likelihood of further Omicron restrictions being imposed and awaited US economic growth data in the afternoon.
The FTSE 100 index was up just 0.56 of a point at 7,297.79. The mid-cap FTSE 250 index was faring better, up 141.93 points, or 0.6%, at 22,962.27. The AIM All-Share index was up 4.78 points, or 0.4%, at 1,178.35.
The Cboe UK 100 index was up 0.2% at 724.37. The Cboe 250 was up 0.7% at 20,362.10. The Cboe Small Companies was up 0.4% at 14,864.54.
In mainland Europe, the CAC 40 stock index in Paris was up 0.2%, while the DAX 40 in Frankfurt was 0.3% higher.
"Investors are preparing to go into hibernation for Christmas and will hope by this time next week we'll know a lot more about the trajectory of Omicron and the likelihood of further restrictions to contain it, and just how long those curbs will be in place," said AJ Bell's Russ Mould. "For now the markets, bar the odd day, have just about managed to hold on to the idea that, to employ central bankers' favourite word of 2021, Omicron's impact will be transitory."
In the FTSE 100, Taylor Wimpey was up 1.3%.
The housebuilder committed to removing terms from contracts that double ground rents for leaseholders every 10 years, the UK Competition & Markets Authority confirmed.
Taylor Wimpey said the CMA investigation into the historical sale of leasehold properties with doubling ground rent clauses by the company is closed, following the agreement of voluntary undertakings.
The High Wycombe, England-based firm said the cost of the undertakings falls within the original provision it made in 2017. By entering into the undertakings there is no finding that Taylor Wimpey has infringed UK consumer law, it noted.
At the other end of London large-caps, Croda International was the worst performer, down 1.7%. The speciality chemicals company has agreed to sell the majority of its Performance Technologies and Industrial Chemicals businesses to Cargill for an enterprise value of EUR915 million on a cash-free, debt-free basis.
Croda said the disposal of the businesses follows the strategic review that it announced in May. The operations being sold represent 77% of PTIC's 2020 revenue and consist of five manufacturing facilities in the UK, China and the Netherlands.
Land Securities was down 0.3%. The property developer bought a further stake in the Bluewater shopping mall outside London.
Landsec said it has completed the acquisition of an additional 25% share in Bluewater from Lendlease Retail Partnership for GBP172 million, representing a net initial yield of 8.15% and an equivalent yield of 8.25%.
In a separate deal, Landsec said it will sell 25% of this share - a 7.5% stake - to co-owner M&G for its pro rata share of the purchase price with the deal completing in April 2022.
M&G shares were up 1.3%.
In the FTSE 250, Syncona was the best performer, up 7.5%, after the healthcare investor said its portfolio company Gyroscope Therapeutics will be sold to Swiss pharmaceutical maker Novartis for up to USD1.5 billion.
Syncona has a 54% stake in Gyroscope following a USD42 million investment in March, after co-founding the business in 2016. In a bumper payday, Syncona will receive upfront cash proceeds of GBP334 million from the deal, representing a GBP180 million uplift to the current holding value.
Novartis shares were down 0.6% in Zurich.
Conversely, Grafton was down 1.1%. The Dublin-based building materials firm acquired Cork-based building materials supplier Sitetech Building Products. Grafton did not disclose a purchase price. Sitetech had revenue of EUR17 million in 2020. Grafton noted the acquisition is subject to approval by the Competition & Consumer Protection Commission in Ireland.
On AIM, Avacta was up 22% after it said its AffiDX Covid-19 antigen lateral flow test has received a CE mark for consumer self-test use in the UK and EU.
The pound was quoted at USD1.3315 at midday on Wednesday, up from USD1.3248 at the London equities close Tuesday.
UK Prime Minister Boris Johnson on Tuesday gave the go-ahead for people's Christmas plans, although he warned tougher restrictions could be implemented post-December 25.
The announcement gave the pound some support, said analysts at OFX.
The euro was priced at USD1.1298, higher against USD1.1267 late Tuesday. Against the Japanese yen, the dollar was trading at JPY114.20, firm from JPY114.14.
Brent oil was quoted at USD74.14 a barrel on Wednesday at midday, up from USD73.48 late Tuesday. Gold stood at USD1,790.23 an ounce, up from USD1,785.40.
US stock index futures were pointing to a mixed start on Wall Street as investors look for clarity over the economic impact of the Omicron variant and the future of the Biden administration's USD2 trillion stimulus plan.
The Dow Jones Industrial Average was called up 0.1%, the S&P 500 flat and the Nasdaq Composite down 0.1%.
The year-and-a-half-long rally across markets has petered out in recent weeks on fears about the new Covid variant and government measures to contain the spread. This comes just as central banks begin to remove the vast financial support put in place at the start of the pandemic.
US investors remain hopeful of a resolution to the latest political impasse after US President Joe Biden said he was optimistic he could win the key vote of Democratic Senator Joe Manchin, who threw the president's economic agenda into doubt after he said Sunday he would reject the present stimulus proposal.
On the corporate front, Merck & Co was up 1.8% in pre-market trade in New York. The drugmaker said the UK government has ordered an additional 1.8 million courses of molnupiravir, its investigational oral antiviral Covid-19 drug.
Wednesday's economic calendar has a third estimate on US third-quarter gross domestic product at 1330 GMT. This is expected to show an annualised increase of 2.1%, unchanged from the second reading.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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