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(Alliance News) - Stock prices in London are seen opening higher on Wednesday, following a lower close on Tuesday, as the conflict between Russia and Ukraine continues to cause volatility in equity markets.
In early company news, Persimmon raised its dividend after a robust annual performance. Insurer Aviva and contract-for-difference provider CMC Markets launched share buybacks.
IG futures indicate the FTSE 100 index is to open 26.20 points higher at 7,356.40. The index closed down 128.05 points, or 1.7%, at 7,330.20 on Tuesday.
Persimmon said its performance was strong in 2021 as it delivered more homes and strengthened its platform for future growth.
For 2021, pretax profit was GBP966.8 million, up from GBP783.8 million in 2020 on revenue of GBP3.61 billion, up from GBP3.33 billion.
The York, England-based housebuilder completed 14,551 new homes in 2021, almost a 1,000 more than 13,575 homes in 2020. The avarage selling price was GBP237,078, up from GBP230,534.
Turning to returns, Persimmon is to pay a 125 pence regular annual dividend instalment in April, alongside a 110p payment of surplus capital in July.
Looking ahead, Persimmon anticipates a greater proportion of completions in the second half of the year relative to the first, reflecting a "return to more typical trading patterns and the growth profile of our outlet network". It also expects to deliver volume growth of 4% to 7% for 2022 from 2021 levels and that increases in selling prices will mitigate build cost inflation.
"The new year's trading has started well, with private sales rates ahead by 2% in the opening weeks and a robust forward sales position of GBP2.21 billion. We expect to grow our outlet position in 2022... whilst maintaining our industry-leading margins, although we are mindful of the growing risk of an economic impact as a result of the tragic conflict in Ukraine," said Chief Executive Officer Dean Finch.
Aviva said 2021 was a year of significant strategic progress across the board following the disposal of eight non-core units, making the insurer a "much simpler, leaner business".
For 2021, Aviva posted adjusted operating profit of GBP2.27 billion, down from GBP3.16 billion in 2020 as a result of discontinued operations. Pretax profit from from continuing operations was GBP801 million, down from GBP1.81 billion.
Turning to returns, Aviva declared a total dividend of 22.05p, up 5% from 21.00p in 2020. In addition, the London-based firm said it would return GBP4.75 billion to shareholders comprising GBP3.75 billion via B share scheme on top of a GBP1 billion share buyback.
Separately, Aviva said it would acquire independent financial advice firm Succession Wealth for GBP385 million. The transaction, it said, enhances its presence in the fast-growing UK wealth market as more people seek advice for their retirement and savings options.
CMC Markets said it intends to launch a GBP30 million share buyback programme. The online trading firm said this should be considered as part of a normal balanced approach to shareholder returns alongside the current dividend policy, which was unchanged.
Clarkson said Chair Bill Thomas will not be seeking re-election at the company's annual general meeting in May, and will step down upon the appointment of his successor.
Clarkson said the board has undertaken a rigorous search of both external and internal candidates and is pleased to announce that Laurence Hollingworth has been named as chair with immediate effect. Hollingworth has been on Clarkson's board since July 2020 and brings "extensive experience" following a 37-year career in stockbroking and investment banking with Cazenove and JP Morgan.
Meanwhile, Russian forces landed in Ukraine's second-biggest city on Wednesday and triggered immediate clashes in the streets of Kharkiv, the military said, following Moscow's relentless air assault across the ex-Soviet state.
The airborne operation came as US President Joe Biden branded Vladimir Putin a "dictator", warning the sanction campaign to cripple Russia's economy would escalate and its oligarchs were being targeted.
In Biden's first State of the Union address, he hailed the resolve of the Western alliance and voiced solidarity with Ukraine as lawmakers in the US Congress gave a standing ovation to the Ukrainian people.
Biden, who had earlier spoken with Zelensky on the phone, announced new measures against Russia and its wealthy elite with a new task force to go after the "crimes" of Russian oligarchs.
However, Biden repeated his commitment that no US troops would be sent to Ukraine to confront the invading forces.
"Everything is still about the Russian invasion of Ukraine and we continue to expect volatile markets near-term. Today, the peace negotiations between Russia and Ukraine continue but with the war continuing we are not sure they will be successful. Markets are seemingly stabilising but risk sentiment remains fragile to any negative news," said analysts at Danske Bank.
In Asia on Wednesday, the Japanese Nikkei 225 index closed down 1.7%. In China, the Shanghai Composite ended down 0.1%, while the Hang Seng index in Hong Kong was down 1.9%. The S&P/ASX 200 in Sydney closed up 0.3%.
The pound was quoted at USD1.3290 early Wednesday, down from USD1.3334 at the London equities close Tuesday.
The euro was priced at USD1.1104, soft from USD1.1109. Against the safe-haven yen, the dollar was trading at JPY115.15, higher against JPY114.89.
Brent oil was quoted at USD111.40 a barrel Wednesday morning, advancing from USD106.10 at the London equity market close on Tuesday. The North Sea benchmark rose above USD110 for the first time since 2014.
Gold stood at USD1,940.15 an ounce, higher against USD1,930.54 late Tuesday.
Wednesday's economic calendar has the eurozone inflation print at 1000 GMT. In addition, there is a key output meeting of OPEC and non-member producers, including Russia. US Federal Reserve Chair Jerome Powell delivers semi-annual testimony before Congress.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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