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* Taylor Wimpey surges on robust results
* Insurer Legal & General rises on strong earnings
* UK's Hut Group jumps as it buys beauty retailer Cult
Beauty
* FTSE 100 up 0.2%, FTSE 250 inches up 0.1%
(Updates to close)
By Shashank Nayar and Amal S
Aug 4 (Reuters) - London's FTSE 100 rose on Wednesday,
helped by heavyweight financial stocks and strong corporate
earnings updates, although investors' mood remained cautious
over rising COVID-19 infections and risks of higher inflation.
The blue-chip FTSE 100 index inched up 0.2%, helped
by financial stocks which gained 1.6% with
Prudential, Legal and General, and Barclays
among the top boosts to the index.
Insurer and asset manager Legal & General gained 3.2% and
was the third biggest gainer on the FTSE 100 after beating
estimates for first-half profit and signalling a strong full
year.
Taylor Wimpey added 2.2% as it joined bigger rivals
in forecasting sustained demand and projected annual operating
profit above the top end of market consensus.
"Higher selling prices, strong forward sales and a rapid
recovery in profits at housebuilder Taylor Wimpey in the first
half will all help to soothe investors' nerves over what may
happen to the UK housing market, as a new "Help to Buy" scheme
starts and the stamp duty holiday comes to an end," said Russ
Mould, investment director at AJ Bell.
Homebuilders have gained nearly 1% this year
on higher demand for homes amid lockdowns and government tax
breaks, although a survey last month pointed towards a cooling
housing market.
The FTSE 100 began the month on a strong note and recorded
gains for the third straight session, supported by robust
earnings and dividend cheer, as investors straddle the fence
between inflation concerns and re-opening optimism.
The domestically focused mid-cap index inched 0.1%
higher, with travel and real estate stocks
leading the gains.
Among other stocks, British e-commerce company The Hut Group
rose 1.4% after it said it would buy UK-based online
beauty retailer Cult Beauty for 275 million pounds ($382.91
million).
Rolls-Royce gained 1.4% as a Spanish newspaper report
said the company is set to sell its Spain-based ITP Aero unit to
U.S. private equity firm Bain Capital and Spanish group Sener
for 1.6 billion euros ($1.9 billion).
(Reporting by Shashank Nayar and Amal S in Bengaluru; Editing
by Kirsten Donovan, Subhranshu Sahu and Uttaresh.V)