(Alliance News) - Stock prices in London were lower early Thursday, with the FTSE 100 index being spared from a steeper fall thanks to a jump in CRH shares and a weaker pound.
The index opened down 15.67 points, 0.2%, at 7,899.26. The FTSE 250 was down 1.43 points at 19,869.17, and the AIM All-Share was down 0.92 of a point, 0.1%, at 859.62.
The Cboe UK 100 was down 0.2% at 790.46, the Cboe UK 250 was marginally higher at 17,421.92, and the Cboe Small Companies was up 0.1% at 14,195.36.
In European equities, the CAC 40 in Paris was down 0.7%, while the DAX 40 in Frankfurt was down 0.8%.
Sterling was quoted at USD1.1959 early Thursday, lower than USD1.1994 at the London equities close on Wednesday.
The pound had dropped below USD1.20 following cautious words from Bank of England Governor Andrew Bailey.
In a speech on Wednesday, Bailey said "nothing is decided" as far as interest rates go, and markets shouldn't assume more interest rate hikes are on the way.
A weaker pound is helpful for the FTSE 100 index, since many of its largest constituents earn in dollars.
One of these is CRH. The stock was up 11% early Thursday.
Alongside a strong set of annual results, the Dublin-based building materials firm announced it will move its primary listing to the US.
"We have now come to the conclusion that a US primary listing would bring increased commercial, operational and acquisition opportunities for CRH," the company said. CRH said the move would accelerate its integrated solutions strategy, as well as higher profit, returns and cash for shareholders.
Annual revenue increased to USD32.72 billion from USD29.21 billion a year before, as pretax profit jumped to USD3.47 billion from USD3.10 billion.
CRH raised total dividends by 5.0% to USD1.27 per share from USD1.21, and announced it will increase its share buyback to up to USD3 billion in the next twelve months. In 2023, it expects demand to be resilient, and expects another year of progress.
The day ahead could be consequential for the euro, with a eurozone inflation reading due in at 1000 GMT.
Market consensus as cited by FXStreet is expecting consumer price inflation to slow to 8.2% in February from 8.6% in January.
However, recent data from France, Spain and Germany have shown an upward trend to inflation, prompting fears of further hawkishness from the European Central Bank.
The euro traded at USD1.0632, down from USD1.0663. Against the yen, the dollar was quoted at JPY136.69, up versus JPY136.15.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average marginally higher, the S&P 500 down 0.5%, and the Nasdaq Composite down 0.7%.
Asian shares closed mostly lower on Thursday. In Tokyo, the Nikkei 225 index closed down 0.1%. The Shanghai Composite fell 0.1%, while the Hang Seng index in Hong Kong lost 0.9%. The S&P/ASX 200 in Sydney closed up 0.1%.
Dragging on the FTSE 100 index in London was Flutter Entertainment, down 4.5%.
The gambling firm said annual revenue was up 27% to GBP7.69 billion from GBP6.04 billion. Its pretax loss was little changed at GBP274.8 million in 2022 from GBP288.4 million in 2021.
Average monthly players rose 26%, thanks to rapid US expansion, as well as Flutter's acquisition of Sisal and tombola.
In 2023 so far, trading has been in line with expectations, Flutter said, with US operations delivering strong growth, as well as strong momentum seen elsewhere, helping to offset a more challenging environment in Australia.
Taylor Wimpey shed 1.2%, with the housebuilder saying 2022 was a year of "distinct halves", with the second half being more challenging.
Annual revenue rose 3.2% to GBP4.42 billion from GBP4.28 billion, while pretax profit jumped 22% to GBP827.9 million from GBP679.6 million. Operating margin improved to 20.9% from 19.3%, thanks to "tight operational controls and price discipline".
Taylor Wimpey said current trading is showing signs of improvement from the fourth quarter, but its reservation rate is significantly lower than previously. It expects average pricing to be similar in the first half from the second half of 2022.
In 2023, Taylor Wimpey expects completions to be weighted to the second half and in the range of 9,000 to 10,500, which would be a sharp drop from 14,154 seen in 2022.
The guidance mirrored that of Persimmon's results on Wednesday, when it warned house completions could drop by more than 40% in 2023.
"The housebuilders are facing a perfect storm from weak consumer confidence, the fallout from last year's mini-budget chaos, declining real wages, rising mortgages rates on the back of the Bank of England's tightening path and softening house prices," said interactive investor's Victoria Scholar.
Consumer healthcare products maker Haleon fell 3.2%.
In its first full-year results since its demerger from GSK in July last year, Haleon said revenue was up 14% to GBP10.86 billion from GBP9.55 billion. Organic revenue growth was 9.0%, and "well-balanced" between volume and price. Pretax profit fell 1.1% to GBP1.62 billion from GBP1.64 billion.
Looking ahead, Haleon expects organic revenue growth of 4% to 6% in 2023, with its adjusted operating margin to be broadly flat after a 40 basis point hit from foreign exchange rates. It also expects to incur a net interest expense of around GBP350 million.
Haleon declared an inaugural final dividend of 2.4p, and expects to commence interim dividends, subject to board approval.
"While the business has been grappling with cost inflation, FX losses and other costs, it has been trying to offset these pressures by raising prices and forward buying," commented ii's Scholar.
"However, the risk is that consumers could trade down to cheaper unbranded alternatives instead amid the cost-of-living crisis and falling real wages."
In the FTSE 250, National Express jumped 11%.
The public transport provider said annual revenue rose 29% year-on-year to GBP2.81 billion, though its pretax loss widened to GBP209.9 million from GBP84.9 million.
National Express reinstated dividends at 5.0p per share "reflecting confidence in the future". Its expectations for 2023 are unchanged, and it has "clear and robust actions in place" to mitigate macroeconomic headwinds and cut costs.
ITV fell 3.3%.
The television broadcaster said total revenue in 2022 rose 7% to GBP4.35 billion from GBP4.04 billion, and pretax profit improved 4% to GBP501 million from GBP480 million. On an adjusted basis, pretax profit fell 13% to GBP672 million.
External revenue grew 8% to GBP3.73 billion, driven by ITV Studies and its digital businesses in Media & Entertainment.
ITV proposed a final dividend of 3.3p, bring the full-year total of 5.0p, which was higher than 3.3p in 2021. ITV said it has started 2023 with "strong momentum", and expects 5% annual revenue growth in ITV studios until 2026.
"Overall these earnings are a bit of a mixed bag. On the one hand, ITV has enjoyed strong top line growth, yet its bottom line has struggled under the weight of investment," ii's Scholar said.
On AIM, Totally plunged 20%.
The healthcare provider said it expects earnings before interest, tax, depreciation and amortisation to be around GBP6.3 million, which is below market consensus.
"The company has...been impacted by the combined impact of high inflation, national strikes, which increase pressure on services and scheduling, and clinical workforce shortages which increase reliance on agency staff for the delivery of urgent care services," Totally explained.
Gold was quoted at USD1,833.06 an ounce early Thursday in London, lower than USD1,838.50 on Wednesday. Brent oil was trading at USD84.30 a barrel, higher than USD83.78.
In the economic calendar, the EU will publish unemployment and inflation data at 1000 GMT. The US will publish its weekly unemployment claims report at 1330 GMT.
By Elizabeth Winter, Alliance News senior markets reporter
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