Genus Share News (GNS)

(Alliance News) - Reassuring remarks from US Federal Reserve Chair Jerome Powell helped London's FTSE 100 grind higher on Thursday, even with Hikma and Standard Chartered tugging on the blue-chip index.

Focus lies on some key data out the US later on Thursday.

The FTSE 100 index was up 18.81 points, or 0.3%, at 6,677.78 midday Thursday. The mid-cap FTSE 250 index was down 31.07 points, or 0.2%, at 21,281.58. The AIM All-Share index was up 0.6% at 1,195.80.

The Cboe UK 100 index was up 0.2% at 664.98. The Cboe 250 was up 0.3% at 18,971.59, and the Cboe Small Companies up 0.8% at 13,195.59.

In mainland Europe, the CAC 40 in Paris was up 0.2% while the DAX 30 in Frankfurt was down 0.2% on Thursday afternoon.

"Many investors have been reassured by the continuation of the Fed's massive bond buying program as well as the huge fiscal aid package from the Biden administration. In addition, recent studies showing encouraging results about the effectiveness of vaccines are also contributing to the bullish trend resurgence. With the end of the pandemic now in sight, more and more investors are now betting on a strong economic recovery to come," said Pierre Veyret, technical analyst at ActivTrades.

"It seems all the planets are now aligned for bullish investors as bearish leverages are harder and harder to find on stock markets," said Veyret. "However, today's slew of major US data will provide traders with more clues towards where the economy is going."

There are US GDP readings and the latest jobless claims numbers at 1330 GMT. Jobless claims are expected to edge down to 838,000 for last week from 861,000 the week before, according to FXStreet.

Ahead of the data, Wall Street is on track for a mixed start. The Dow Jones is seen building on Wednesday's record closing, edging up 0.2% at Thursday's open, while the S&P 500 is seen flat the Nasdaq down 0.4%.

The dollar, meanwhile, was soft against major currency pairings.

The pound rose to USD1.4157 midday Thursday from USD1.4100 late Wednesday, while the euro traded at USD1.2232 from USD1.2127 late Wednesday.

The buck did gain ground against the safe haven Japanese yen, however. Against the yen, the dollar firmed to JPY106.11 versus JPY106.00.

Gold was quoted at USD1,788.98 an ounce Thursday, down on USD1,796.20 on Wednesday amid the improved market mood. Brent oil was trading at USD67.18 a barrel, nudging up from USD67.02 late Wednesday.

In London, packaging firm DS Smith was the top performer in the FTSE 100, rising 6.3% after a report that peer Mondi is casting its eye over the firm.

Bloomberg late Wednesday reported that Mondi is considering a potential takeover of fellow London-listed packaging firm DS Smith. Citing people familiar with the matter, Bloomberg reported that Mondi has been speaking with advisers as it weighs up such a deal. However, the people said deliberations are at an early stage and there is no certainty they will lead to a transaction.

Separately, Mondi on Thursday reported a fall in annual profit but showed its confidence going forward by upping its shareholder payout for 2020. Shares in Mondi were down 0.3% at midday.

At the bottom of the FTSE 100 was Hikma, sliding 5.8%. The drug maker raised its annual dividend as its reported higher pretax profit, with growth from all three of its businesses, though profit attributable to shareholders declined.

The drug maker's pretax profit increased 14% to USD558 million in 2020 from USD491 million in 2019 as revenue rose 6% to USD2.34 billion from USD2.21 billion.

However, profit attributable to shareholders fell to USD431 million from USD486 million, which Hikma said "reflects the utilisation in 2019 of previously unrecognised tax losses and deferred tax benefits". Core profit attributable to shareholders was 12% higher at USD408 million.

Standard Chartered shares slumped 5.3% as profit failed to live up to consensus expectations.

Chief Executive Bill Winters said: "We are weathering the health crisis and geopolitical tensions very well. We remain strong and profitable, although clearly impacted by credit challenges and low interest rates. Our strategic transformation continues to progress well, and our outlook is bright."

For 2020, the London-headquartered but Asia-focused bank recorded pretax profit of USD1.61 billion, down 57% from the USD3.71 billion reported in 2019. StanChart's profit mark came in below market consensus of USD1.85 billion.

Morgan Sindall rallied 11% in the FTSE 250 amid a upbeat outlook.

The London-based construction company said revenue slipped in 2020 to GBP3.03 billion from GBP3.07 billion reported for 2019. Pretax profit fell by 31% year-on-year to GBP60.8 million. Despite that, the company said it will be paying a dividend of 61.0 pence a share for the year, up from 21.0p paid the year before.

"The size and quality of our growing secured workload at well over GBP8 billion leaves us well-positioned for the future and we are on track to deliver a result which is materially ahead of our previous expectations and slightly ahead of that delivered in 2019," said Chief Executive John Morgan.

Shares in Aston Martin zoomed ahead, surging 7.8% despite the luxury car maker posting a widened loss for 2020.

Revenue for 2020 fell 38% to GBP611.8 million. Total retail sales, being dealers sales to customers, were down 32% to 4,150 units, and total wholesales, being company sales to dealers, down 42% to 3,394 from 5,862. Aston Martin's pretax loss deepened to GBP466.0 million from GBP119.6 million in 2019.

Positively, though, the firm said it successfully launched its first sports utility vehicle, the DBX, which began deliveries at the end of July. After a "quality led" ramp-up, 1,171 DBXs were wholesaled from the new St Athan facility in the fourth quarter - with the full-year total 1,516 - ensuring all dealers had received their demonstrator and showroom vehicles by the end of the year.

Aston Martin described customer response to the DBX as "very positive", with strong demand and the orderbook in line with expectations.

Harry Barnick, senior analyst at Third Bridge, commented: "Increasing the number of SUV sales is mission critical to the turnaround of the brand. Q3 was uninspiring with less than 400 units, Q4 volumes shot up to 1,171 units, which will bring comfort to investors. Aston Martin now has to sustain this quarterly figure through 2021 if it is to avoid falling behind by its competitors."

Genus was the worst mid-cap performer at midday, down 6.6% as it noted currency headwinds in the second half.

The Basingstoke, Hampshire-based company sells products made using biotechnology to cattle and pig farmers. It recorded revenue for the six moths ended December 31 of GBP285.7 million, a rise of 6% from GBP270.7 million in 2019. Pretax profit for the period was GBP38.7 million, a substantial increase of 27% from GBP30.4 million in 2019.

Looking ahead, Genus said it will remain "resilient" as the the Covid-19 pandemic continues and expects trading to be in line with its 2021 expectations.

"In the second half of the 2021 fiscal year, we expect that growth will be lower and there are increased currency headwinds. Nevertheless, Genus continues to have significant growth opportunities and the board's expectations remain unchanged for the full year," Chief Executive Stephen Wilson said.

By Lucy Heming; lucyheming@alliancenews.com

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