(Alliance News) - Stock prices in London turned lower at midday on Tuesday as the UK continues to grapple with worryingly high rates of coronavirus infections and fears lockdown measures could be tightened further.
A further 529 people died within 28 days of testing positive for coronavirus as of Monday, taking the UK total to 81,960 - though separate figures show there have now been 97,000 deaths involving Covid-19 in the UK.
The FTSE 100 index was down 46.03 points, or 0.5%, at 6,752.45. The mid-cap FTSE 250 index was down 75.43 points, or 0.3%, at 20,700.70. The AIM All-Share index was down 0.2% at 1,176.73.
The Cboe UK 100 index was down 0.8% at 671.85. The Cboe 250 was down 0.4% at 17,966.11, and the Cboe Small Companies was up 0.2% 12,148.56.
In Paris, the CAC 40 was flat, while Frankfurt's DAX 30 was 0.1% higher.
"European equities traded sideways on Tuesday, following Monday's global sell-off. It seems the December trading enthusiasm, driven by the prospect of a global economic recovery, is now being offset by alarming Covid-19 numbers as well as valuation concerns over stocks that went far away from their equilibrium price," said analysts at ActivTrades.
On the London Stock Exchange, Kingfisher was the best blue chip performer, up 3.0%. The do-it-yourself products retailer was benefiting from high-demand for home improvements as lockdown restrictions continue.
Kingfisher said it expects annual profit to be at the top end of market estimates as the B&Q and Screwfix DIY chains have continued to see "strong" demand so far in its fourth quarter.
In the ten weeks to January 9, group like-for-like sales jumped 17% year-on-year, helped by e-commerce sales more than doubling. Kingfisher added that its year-to-date like-for-like sales are up 6.5%.
The retailer said it is confident its annual adjusted pretax profit can land in the top end of the GBP667 million to GBP742 million analyst expectations range.
For the year ended January 31, 2020, Kingfisher reported adjusted pretax profit of GBP544 million, so financial 2021 could see a jump of up to 36%.
DIY store owners such as Kingfisher, which in mainland Europe owns Castorama France and Brico Depot, have benefited from boosted demand for home improvement as locked down consumers spend more time indoors.
Avast was up 2.0% after Berenberg started coverage on the cybersecurity firm with a Buy rating.
In the FTSE 250, Gamesys was the best performer, up 4.8% after the online bingo and casino games operator shook off Covid-19's "unprecedented challenges" and tipped its 2020 performance to top market expectations.
The Jackpot Joy and Rainbow Riches owner said it is "confident" that revenue and adjusted earnings before interest, tax, depreciation and amortisation will be at or above the top end of market estimates. Davy Research said that Gamesys is likely to achieve an adjusted Ebitda above GBP200 million, up at least 69% annually, and above consensus of GBP197 million.
In 2019, Gamesys reported adjusted Ebitda of GBP118.2 million, up 9.0%, on revenue of GBP415.1 million, up 35% from 2018.
At the other end of the midcaps, Games Workshop was the worst performer, down 7.2%. The wargames manufacturer and retailer lowered its interim payout and warned on current trading conditions, despite reporting a solid rise in profit and revenue for the period.
For the six months ended November 29, the company posted pretax profit of GBP91.6 million, up 56% from GBP58.6 million a year before. This was on revenue that grew by 26% year-on-year to GBP186.8 million from GBP148.4 million on a reported basis. On a constant currency basis, revenue rose by 27%. The Retail business declined by 19% to GBP36.9 million, with trading in most countries stifled by government restrictions.
Games Workshop warned that should current sales trends continue for the full year, the group would have around 50 stores that would not break even. Games Workshop declared an interim ordinary dividend of 80 pence per share, down 20% from 100p the prior year. However, in early December, the group declared an additional payout of 60p per share.
Elsewhere, greeting cards retailer Moonpig set out plans to float in London, hot-on-the-heels of bootmaker Dr Martens which outlined initial public offering plans of its own on Monday.
The online greeting card and gifting platform, which also includes the Greetz brand in the Netherlands, said it will seek a premium listing on the London Main Market for holding company Cards Holdco.
The Times on Friday reported that Moonpig was eyeing a GBP1 billion stock exchange listing.
The pound was quoted at USD1.3594 on Tuesday at midday, up sharply from USD1.3506 at the London equities close Monday.
The euro was priced at USD1.2150, down from USD1.2163. Against the yen, the dollar was trading at JPY104.21 at midday, unchanged from late Monday.
Brent oil was quoted at USD56.45 a barrel at midday Tuesday, up sharply from USD55.58 late Monday. The North Sea benchmark hit a high of USD56.71 in early trade - a fresh 11-month high.
"Investors are betting on the continued recovery of global demand over the next few months after a difficult 2020. The cuts announced last week by Saudi Arabia are basically a victory of Russia but in some way are also showing that OPEC+ can still play its role in the current markets. The price is therefore consolidating and remains in a positive environment," explained analysts at ActivTrades.
Gold was trading at USD1,842.26 an ounce, lower against USD1,845.86.
Wall Street looks set to bounce back from losses incurred on Monday as Democrats push ahead with a historic second impeachment of President Donald Trump.
The Dow Jones Industrial Average was called up 0.2%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.4%.
Democrats accuse Trump of inciting last week's storming of the Capitol Building that delayed lawmakers' certification of Joe Biden's election win.
Observers said the chances of Trump being convicted were slim but there was a concern that the latest moves could foment more unrest, with some reports saying the president's supporters were planning fresh demonstrations at the weekend and during Biden's inauguration next week.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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