LONDON (Alliance News) - London stocks ended in the green on Tuesday amid improved market sentiment, though a firm pound kept the FTSE 100 in check.London's blue-chip index was also held back by losses for cruise operator Carnival and plumbing and heating products distributor Ferguson, while online grocer Ocado rose on news of an international deal down under.The FTSE 100 index closed up 18.71 points, or 0.3%, at 7,196.29. The FTSE 250 ended up 96.68 points, or 0.5%, at 18,896.24, and the AIM All-Share closed up 6.01 points, or 0.7%, at 904.80.The Cboe UK 100 ended up 0.3% at 12,223.47, the Cboe UK 250 closed up 0.5% at 16,959.99, while the Cboe Small Companies ended down 0.2% at 11,118.12.In European equities on Tuesday, the CAC 40 in Paris ended up 0.9%, while the DAX 30 in Frankfurt closed up 0.6%."A sharp rebound from the Dow Jones ensured its European peers had the confidence to build on their early gains, while the pound held onto its optimistic growth," said Spreadex analyst Connor Campbell. "The stabilisation of US Treasury yields allowed the Dow Jones to come out of the open with all guns blazing."Stocks in New York were higher at the London equities close, with the Dow Jones up 0.7%, the S&P 500 index up 0.8%, and the Nasdaq Composite up 0.9%. However, the firm pound ensured the FTSE 100 posted a "comparatively meagre increase" relative to peers in Europe and the US, Campbell added.The pound was quoted at USD1.3219 at the London equities close Tuesday, up compared to USD1.3168 at the close on Monday.UK Prime Minister Theresa May will face Tory MPs on Wednesday as she battles to save her premiership and her Brexit deal.The prospect of MPs voting in support of a soft Brexit or second referendum appears to be winning some Tory Eurosceptics round to reluctantly backing her deal, but there has been widespread speculation that others might demand May sets out the timetable for her departure as the price for their support.One of the backbenchers, Jacob Rees-Mogg, said "the choice seems to be May's deal or no Brexit".Meanwhile, May was braced for further Commons revolts on Wednesday, with Cabinet ministers demanding free votes on the various Brexit options set to be presented and Eurosceptics poised to reject the domestic legislation delaying the date of the UK's exit from the EU.The government defeat on Monday night saw three ministers resign as 30 Tories rebelled to back Oliver Letwin's amendment to give MPs control of the Commons agenda in order to seek a Brexit plan which can command a majority.The euro stood at USD1.1288 at the European equities close Tuesday, down from USD1.1311 at the same time on Monday.The safe haven asset gold eased on Tuesday after getting a boost from Monday's risk-off sentiment. An ounce of the precious metal was quoted at USD1,314.30 an ounce at the London equities close Tuesday against USD1,321.35 at the close on Monday."The metal hit its highest level in nearly one month yesterday, and the stronger greenback encouraged some profit taking today. The metal's wider upward trend is still intact, and if the positive run continues, it might target the USD1,346 area," said CMC Markets analyst David Madden.In other commodities, Brent oil was quoted at USD67.87 a barrel at the London equities close Tuesday from USD67.14 late Monday.In The FTSE 100, Ferguson slipped 7.1% to be the worst blue-chip performer after warning growth in the months ahead is set to slow.The plumbing and heating products distributor reported revenue of USD10.85 billion for the six months to the end of January, up 8.2% from USD10.03 billion reported a year earlier, pushing pretax profit up by 14% to USD679 million from USD598 million.Despite the strong half, Ferguson warned that growth has started to moderate. As a result, Ferguson said it expects organic revenue growth between 3% and 5% for the full-year, implying a sharp slowdown from the 6.5% achieved in the first half. Anglo-American cruise operator Carnival ended as the second worst performer in the FTSE 100, down 5.2% after warning on the risk of a USD155 million hit from higher fuel prices and adverse currency movements on its 2019 annual results.Adjusted earnings per share for the first quarter ended February 28 totaled USD0.49, down from USD0.52 for the first quarter of 2018, hit by an 8.6% increase in gross cruise costs, including fuel. Gross Cruise revenue increased to USD4.6 billion from USD4.2 billion in the first quarter a year ago. In constant currency, net cruise revenue rose 4.7% to USD3.6 billion from USD3.4 billion. The company lowered its adjusted earnings per share estimate for the full-year, now forecasting it in a range of USD4.35 to USD4.55, down from December guidance of between USD4.50 and USD4.80 per share. In 2018, the company's adjusted earnings per share amounted to USD4.26.Ending at the top of the index, meanwhile, was online grocer Ocado, up 4.6%. Ocado has entered into an exclusive technology agreement with retailer Coles Group to launch online grocery shopping in Australia.The partners plan to construct two automated warehouses in Melbourne and Sydney, which are expected to be operational by 2023. Each of the centres will have an estimated sales capacity of between USD500 million to USD750 million per year.Ocado will be responsible for the installation of the material handling equipment in the centres, including the provision of ongoing maintenance and support. To ensure successful completion of the project, the UK online grocer will base a team in Australia, both for the construction and maintenance of the facilities.FTSE 250-listed housebuilder Crest Nicholson closed up 5.3% after hiring Galliford Try's Chief Executive Peter Truscott.Crest Nicholson's current CEO Patrick Bergin will step down at its annual general meeting being held Tuesday. In the interim period, Chris Tinker will become CEO. Tinker is currently chair of major projects & strategic projects. Galliford Try has appointed its Finance Director Graham Prothero as its new CEO, while Linden Homes Finance Director Andrew Duxbury has replaced Prothero.The construction firm's shares closed down 2.4%.Crest Nicholson also issued a trading update at its AGM, saying its forward sales position is "encouraging", with over 50% of open market sales already secured for its current year ending October. Elsewhere on the Main Market, Debenhams closed up 37% at 2.11 pence, giving the retailer a market capitalisation of GBP26 million, after shareholder Sports Direct International said it is mulling a takeover offer for the struggling department store.Debenhams said any offer from Sports Direct must provide an offer price, a "clear plan" on how Debenhams' debt will be repaid and, finally, Debenhams said the offer must address how the company's immediate funding requirements will be met. FTSE 250 constituent Sports Direct closed up 2.0%.Moss Bros sank 8.7% after the formal menswear retailer swung to a loss and skipped the payment of a final dividend. Moss Bros posted a pretax loss of GBP4.2 million for the 12 months to January 26, following a pretax profit of GBP6.7 million the year before. On an adjusted basis, the firm recorded a pretax loss of GBP400,000.This loss, Chief Executive Brian Brick said, was the tailor's first on an adjusted pretax basis since its financial year ended 2011. Revenue fell 2.1% year-on-year to GBP129.0 million, with like-for-like sales declining 4.3% to GBP140.2 million. As a result of the "volatile" trading environment, Moss Bros will not be paying a final dividend. It returned an interim payout of 1.5 pence per share, having paid out 4.0p for the whole of its previous year. On London's junior AIM market, premium tonic water maker Fevertree Drinks closed up 6.1% after sunny weather in the UK boosted its 2018 results.Revenue climbed 40% in 2018 to GBP237.4 million, lifting pretax profit by 34% to GBP75.6 million. This represents another year of strong growth for the firm, after similar progress over the past few years since listing in London in late 2014.In the UK, revenue surged 53% to GBP134.2 million, with performance in the country "exceptional" due to prolonged hot weather as well as events such as the royal wedding and the football World Cup. This positive performance continued over Christmas, Fevertree said. In the corporate calendar on Wednesday, tobacco major Imperial Brands and technical products supplier Diploma put out trading statements, while housebuilder Bellway puts out interim results.In Wednesday's economic calendar, European Central Bank President Mario Draghi speaks in Frankfurt at 0800 GMT, while US MBA mortgage applications are at 1100 GMT and Confederation of British Industry Distributive Trades Survey at 1100 GMT. The US trade balance is at 1230 GMT.
8 Jul 2016 13:53
