(Alliance News) - Stock prices in London are seen opening higher on Monday after the long bank holiday weekend amid tentative steps by the UK government to ease its two-month coronavirus lockdown.
In early company news, industrial firms Diploma and Victrex delivered solid interim results, but both withdrew dividend payments due to uncertainty caused by the health crisis.
IG futures indicate the FTSE 100 index is to open 58.10 points higher at 5,994.10. The blue-chip index closed up 82.22 points, or 1.4% at 5,936.00 on Thursday. The London market was closed on Friday for the VE Day celebrations.
Technical products supplier Diploma said it delivered a robust first-half performance in the face of the Covid-19 pandemic.
For the half-year ended March 31, revenue rose 9% to GBP283.6 million from GBP260.4 million last year, and pretax profit increased 4% to GBP41.6 million from GBP40.1 million.
However, Diploma has decided to suspend payment of an interim dividend.
Looking ahead, Diploma said its outlook for the second half remains uncertain as the global response to Covid-19 pandemic hurts its operations in many of its major markets.
"The group has a resilient and proven business model supported by operating in structurally attractive and diverse sectors and geographies and has a strong balance sheet and liquidity position. The board remains confident in the group's future and expects the group to deliver growth and strong shareholder value creation in the medium term," Diploma said.
Speciality chemicals company Victrex said that, despite global demand for chemicals remaining uncertain, it delivered a solid first half which was in line with expectations.
For the six months to March 31, revenue rose 4% to GBP151.5 million from GBP145.7 million a year before; however, pretax profit edged lower to GBP49.9 million from GBP50.2 million reflecting exceptional items of GBP2.1 million related to the group's China subsidiary investment.
Victrex deferred its interim dividend due to the coronavirus.
It said it made a solid start to the second half with a strong order book.
"We have implemented a range of cash-conservation measures, including deferring our debottlenecking programme and a decision on our interim dividend, and alongside our net cash position and available facilities, our balance sheet remains strong. As previously communicated, with significant macro and end-market uncertainty, we are unable to provide detailed guidance on full-year expectations. We believe the proactive actions we are taking are appropriate to minimise disruption and on a long-term basis, our Polymer & Parts strategy keeps us well placed to deliver our range of medium to long term growth opportunities," Victrex Chief Executive Jakob Sigurdsson said.
AstraZeneca and Daiichi Sankyo Co said that their jointly developed drug Enhertu has been granted breakthrough therapy designation in the US for metastatic gastric cancer.
The pharmaceutical companies said this designation, granted by the US Food & Drug Administration, is designed to accelerate the development and regulatory review of potential new medicines intended to treat a serious condition and address a significant unmet medical need. The FDA's decision was based on data from phase 2 and phase 1 clinical trials, the companies said.
In addition, AstraZeneca said its Lynparza treatment has been approved in the US as first-line maintenance treatment with bevacizumab for HRD-positive advanced ovarian cancer.
UK Prime Minister Boris Johnson on Monday will provide more detailed plans to gradually ease the coronavirus lockdown when the government publishes its official guidance amid widespread calls for clarity.
The prime minister will also face members of Parliament on Monday after offering his "first sketch of a road map" for restarting the economy and social lives in England. He will give a statement to the Commons, with more information expected on a Covid-19 alert system, use of face coverings and the return of professional football.
In a broadcast from Downing Street on Sunday evening, the PM said a phased reopening of schools and non-essential shops in England could potentially begin from June 1 if the transmission can be reduced.
Johnson also said Sunday that Britain would "soon" quarantine air passengers from abroad due to the coronavirus pandemic.
In France, people will from Monday be able to walk outside for the first time in nearly eight weeks without filling in a permit, teachers will start to return to schools, and some shops will reopen. Bars, restaurants, theatres and cinemas will, however, remain closed.
Spaniards outside of urban hotspots such as Madrid and Barcelona - which remain under lockdown - made plans to meet friends and family in bars and restaurants that have outdoor spaces.
The pound was quoted at USD1.2412, up from USD1.2308 at the London equities close on Thursday.
The EU and UK are to take another run at making headway on a post-Brexit trade deal on Monday in a third round of negotiations held by video conference.
The last two rounds yielded little progress, with Brussels lead negotiator Michel Barnier accusing London of refusing to seriously engage with the discussions. Negotiations will continue every day this week until Friday.
The euro was quoted at USD1.0842, up from USD1.0790. Against the yen, the dollar was quoted at JPY106.95, up from JPY106.48.
Brent oil was trading at USD30.60 a barrel Monday morning, lower than USD30.83 late Thursday in London. Gold was quoted at USD1,704.10 an ounce, firm from USD1,700.80.
The Japanese Nikkei 225 index closed up 1.1% on Monday. In China, the Shanghai Composite is down 0.3%, while the Hang Seng index in Hong Kong is up 1.7%.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Astrazeneca (AZN)
Victrex (VCT)
Diploma (DPLM)
