LONDON MARKET PRE-OPEN: AB Foods Primark Sales Up; Persimmon Sales Dip

(Alliance News) - Stock prices in London are set to open flat on Thursday with markets in the US closed for Independence Day.In early UK company news, Associated British Foods reported sales growth at Primark as increased selling space offset falling like-for-like sales. Persimmon's interim revenue slipped on lower completions. Quilter said it is mulling the sale of its Old Mutual Wealth Life Assurance unitIG says futures indicate the FTSE 100 index of large-caps to open 1.48 points higher at 7,610.80 on Thursday. The FTSE 100 index closed up 50.13 points, or 0.7%, at 7,609.32 on Wednesday, exceeding the 7,600 mark to end at its highest level since late August last year.London stocks this week have been boosted by disappointing domestic data. On Monday, IHS Markit reported the UK manufacturing PMI fell to 48.0 points in June from 49.4 in May, while saying on Tuesday the construction PMI dropped dramatically 43.1 points in June from 48.6 in May. Then, on Wednesday, the services reading slipped to 50.2 in June, down from 51.0 in May.Sterling was quoted at USD1.2579 early Thursday, up compared to USD1.2564 at the London equities close on Wednesday. The pound began the week trading near to the USD1.27 mark."Though it is too early to call for a rate cut in the foreseeable future, the probability of a 25-basis-point action before the end of this year doubled to 45% since the beginning of this week," said Ipek Ozkardeskaya, senior market analyst at London Capital Group."Investors will likely chase dip-buying opportunities in downside corrections, as the soft British pound and the prospects of a cheaper liquidity remain mouth-watering in the actual context of the global equities rally," Ozkardeskaya added.In early UK company news, AB Foods said sales in bricks-and-mortar retailer Primark picked up in June after a tough May.Group revenue from continuing businesses for the 40 weeks to June 22 was up 3% on a year ago at constant currency and 2% higher at actual exchange rates. Excluding sugar, sales were up 4% both at constant currency and actual rates. Sales at low-cost fashion retailer Primark were up 4% in the year-to-date at both constant and actual currencies, driven by increased selling space offsetting a fall in like-for-like sales. In the UK, the sales growth recorded in the first half continued in the third quarter, though like-for-like sales were held back by unseasonable weather in May. AB Foods added that it has seen an improvement in sales in June. The US continued to deliver "encouraging" like-for-like sales.AB Foods said that, overall, its annual forecasts are unchanged, expecting good profit growth at Primark and, on an underlying basis, in Grocery. Persimmon said interim revenue slipped as the company focused on customer service initiatives.Revenue in the first half of 2019 fell to GBP1.75 billion from GBP1.84 billion a year before, as the number of legal completions fell to 7,584 from 8,072 while the average selling price edged up to GBP216,950 from GBP215,813.The lower level of completions was due to customer service initiatives via fewer sales outlets and later sales releases, the company explained. "I am pleased that there are some clear early signs that our focus on increasing the quality and service delivered to our customers is beginning to bear fruit, with some encouraging improvements being made right across the business," said Chief Executive Dave Jenkinson.He added: "We enter the second half with our build programme well progressed, healthy rates of sale on site and an encouraging forward sales position."Wealth management firm Quilter confirmed it is considering a possible sale of its Old Mutual Wealth Life Assurance unit as part of a strategic review.London and Johannesburg-listed Quilter - which demerged from Old Mutual in June 2018 - explained it was undertaking a "strategic review" of its "heritage" Old Mutual Wealth Life Assurance business. Although no decision has been made, the firm did cite the possibility of a sale of the unit. Energean Oil & Gas said it intends to purchase Edison Exploration & Production for USD750 million as initial consideration, with an additional USD100 million payable following first gas from the Cassiopea development, offshore Italy. Edison's portfolio of assets includes producing assets in Egypt, Italy, Algeria, the UK North Sea and Croatia, and development assets in Egypt, Italy and Norway. The enlarged group is expected to produce more than 140,000 barrels of oil equivalent per day in 2021.Energean will fund the acquisition through a USD600 million committed bridge loan facility and up to USD265 million via a placing. Great Portland Estates said the second quarter has started well after "healthy" leasing activity in the first three months of its financial year. In the quarter to June 30, the company said it signed nine new lettings, generating annual rent of GBP2.2 million. Seven rent review were settled, while the company had twelve lettings under offer. "I am pleased to report continued positive activity over the first quarter with healthy leasing, excellent progress at our three committed development schemes, which are already more than 23% pre-let or under-offer, and further surplus equity returned to shareholders through our ongoing share buyback programme," said Toby Courtauld, Great Portland chief executive. "The second quarter has started well with encouraging levels of enquiries from prospective occupiers attracted to our brand of high quality, well located space," he added.Magners cider maker C&C Group said it has made a "solid" start to its financial year, with trading in line with current market expectations. Additionally, the company said it is now now seeking inclusion in the FTSE UK Index Series, following the acquisition of Matthew Clark and Bibendum. Since this acquisition from alcohol distributor Conviviality in 2018 for a nominal sum, a majority of the Irish company's revenue now comes from the UK. In order to become eligible for FTSE index inclusion, C&C will be cancelling its Euronext Dublin listing. Elsewhere in the UK, the government has been heavily defeated in the Lords over an Opposition call for a no-deal Brexit inquiry.Peers voted by 245 to 99, majority 146, to set up a joint committee of the Commons and the Lords to examine the costs and implications of leaving the EU without a deal.While having no legal effect, the vote could trigger a debate in the Commons on the impact of no deal before the summer recess.In the US, Wall Street ended on a positive note during Wednesday's abbreviated pre-holiday trading session, with the Dow Jones Industrial Average ending up 0.7%, the S&P 500 up 0.8% and Nasdaq Composite up 0.8%.Three days after the US and North Korean leaders held a historic third meeting, Pyongyang's UN Mission accused Washington on Wednesday of talking about dialogue but being "more and more hell bent" on hostile acts.A press statement from the mission pointed a finger at US efforts to exert "overt pressure" and have the world's nations implement UN sanctions.First, it said, the US and 23 other countries sent a letter to the UN Security Council committee monitoring sanctions on North Korea demanding urgent action "under the absurd pretext of 'excess in the amount of refined petroleum imported'.The US and the other countries accused North Korea, or the Democratic People's Republic of Korea, of violating UN sanctions by importing far more than the annual limit of 500,000 barrels of refined petroleum products, which are key for its economy.Meanwhile, tensions between the US and Iran ratcheted up another notch. Iran will increase its level of uranium enrichment starting Sunday, President Hassan Rowhani said, a step described as the country's second phase in scaling back its adherence to the 2015 nuclear accord with world powers.The deal capped enrichment to 3.67%. That level is sufficient for civilian nuclear activities - including electricity generation and medical research - but not enough to produce a bomb.US President Donald Trump tore into Iran, saying in a tweet on Wednesday: "Be careful with the threats, Iran. They can come back to bite you like nobody has been bitten before!" In Asia on Thursday, the Japanese Nikkei 225 index closed up 0.3%. In China, the Shanghai Composite is down 0.4%, while the Hang Seng index in Hong Kong is flat.A light economic events calendar on Thursday has eurozone retail sales figures at 1000 BST.