Last checked at 
LONDON (Alliance News) - Stocks in London were mostly higher on Thursday morning, with National Grid in favour as its shareholders are set for a GBP4.00 billion windfall after the owner of the UK's energy networks sold off a large stake in its gas distribution business.
On the downside, outsourcing company Capita was suffering after warning it is lowering its forecasts for 2016 results and expects similar weakness in 2017, as trading headwinds it faces are set to continue into next year.
The FTSE 100 index was up 0.1%, or 3.15 points, at 6,905.38. The FTSE 250 was up 0.3% at 17,673.79, and the AIM All-Share was slightly lower at 813.02.
The BATS UK 100 index started up 0.1% at 11,673.59, the BATS 250 was up 0.3% at 16,070.59, and the BATS Small Companies was down 0.1% at 10,249.98.
National Grid, up 1.2%, had already said it was looking to sell a stake in its UK gas distribution business and on Thursday confirmed it will sell a 61% stake for GBP3.60 billion in cash, while retaining a minority 39% stake.
The gas distribution sale by National Grid was to a consortium comprised of Macquarie Infrastructure & Real Assets Allianz Capital Partners, Hermes Investment Management, CIC Capital Corp, Qatar Investment Authority, Dalmore Capital and Amber Infrastructure /International Public Partnerships.
London-listed International Public Partnerships released a statement confirming the deal on Thursday. Its share of the purchase price is GBP275.0 million, with the rest of the balance coming from the other investors.
Intertek Group was up 2.1% after HSBC rose the assurance, testing, inspection and certification services provider to Hold from Reduce. Meanwhile, advertising giant WPP was up 2.1% after Jefferies upgraded it to Buy from Hold.
Travel operator TUI was up 1.4% after saying underlying earnings outpaced its previous guidance in its recently completed financial year, and it anticipates further growth in the coming year.
TUI, which owns the Thomson and First Choice holiday brands, said it made underlying earnings before interest, tax and amortisation of EUR1.00 billion in the year to the end of September, up 5.0% but rising 15% in constant currencies, ahead of the 12% to 13% growth guidance the company had given in its post-close statement in September.
Glencore was another gainer, up 0.9%. The miner and commodities trader confirmed that it is in the final-stage of negotiations to acquire a 19.5% interest in the issued share capital of Russian oil firm Rosneft for EUR10.2 billion. Glencore is making the investment alongside the Qatar Investment Authority.
Under the proposed arrangements, Glencore would commit EUR300 million in equity with the balance of the consideration to be provided by QIA and by non-recourse bank financing.
Capita was down 5.9%. In its pre-close trading update, the firm said that it now expects 2016 profit to be GBP515.0 million, lowered from previous guidance of GBP535.0 million to GBP555.0 million, due to a slowdown in client spend and issues in its IT Enterprise Services division. Capita forecast revenue of around GBP4.80 billion for 2016.
Capita said it expects to recommend a final dividend for 2016 of 20.6 pence, making for a total dividend of 31.7p, unchanged from the prior year. The company said it expects to maintain that dividend in 2017.
In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were both up 0.4%.
In Asia on Thursday, the Japanese Nikkei 225 index closed up 1.5%. In China, the Shanghai Composite fell 0.2%, while the Hang Seng index in Hong Kong rose 0.2%.
The highlight in the economic calendar is the European Central Bank monetary policy decision. The ECB Governing Council will announce its policy decision at 1245 GMT, followed by a press conference with President Mario Draghi in Frankfurt at 1330 GMT.
Analysts and economics expect the ECB to prolong its monetary support for the eurozone economy by announcing an extension to the duration of its asset purchase programme.
At its last monetary policy meeting in October, the ECB confirmed that monthly asset purchases of EUR80 billion were intended to run until the end of March 2017, "or beyond, if necessary". Analysts expect the central bank to extend its quantitative easing programme, at least, to September 2017, leaving the stock of assets unchanged.
Elsewhere in the economic calendar, US initial and continuing jobless claims are at 1330 GMT.
By Daniel Ruiz; danielruiz@alliancenews.com
Copyright 2016 Alliance News Limited. All Rights Reserved.
