London midday: Stocks in the black; Greggs gains after lifting outlook
London stocks were firmly in the black by midday on Tuesday despite weak sessions in the US and Asia, with a strong showing from bakery chain Greggs after it lifted its outlook.
The FTSE 100 was up 0.7% at 7,059.80.
Neil Wilson, chief market analyst at Markets.com, said: "We’re at a point where the pessimism over the supply chain problems is probably nearing a peak, and expectations for growth have washed out. Likewise we may be at peak inflation/stagflation fears - the reopening is apace.
"Cyclicals/value are not doing enough to compensate for what amounts to a pretty sizeable pullback for the tech sector now, but there could be room for this area of the market to rally again as the economic situation starts to feel like it could pick up. Still this selloff looks like it has a little further to run before the equilibrium is restored."
In equity markets, Greggs surged after it said the full-year outcome was set to be ahead of its previous expectations following a strong sales performance in the third quarter, although it also warned over inflationary pressures.
The company, known for its sausage rolls, said two-year like-for-like sales were up 3.5% in the third quarter despite staffing and supply chain disruption.
Richard Hunter, head of markets at Interactive Investor, said: "Greggs’ no-nonsense, value approach has succeeded where others have struggled, despite broader pressures outside of its control.
"Strategically, the company’s imaginative marketing ploys have also been successful, particularly the more recent vegan-friendly food and drink ranges, with themed offerings such as Halloween to follow. Greggs will also be outlining its plans for new stores at an upcoming Capital Markets Day, offering the fact in advance that pre-pandemic company-managed stores returned 42% on capital and franchised stores 33%."
On the downside, aerospace and motoring engineer Melrose slumped after saying it expected the global shortage of semi-conductors to hit its automotive division following a rise in customer cancellations in the first quarter.
Market Movers
FTSE 100 (UKX) 7,059.80 0.70%
FTSE 250 (MCX) 22,781.07 0.56%
techMARK (TASX) 4,578.98 0.91%
FTSE 100 - Risers
Ocado Group (OCDO) 1,703.50p 2.90%
Smith & Nephew (SN.) 1,300.50p 2.81%
JD Sports Fashion (JD.) 1,062.00p 2.66%
Ferguson (FERG) 10,465.00p 2.60%
Rightmove (RMV) 685.60p 2.48%
Intermediate Capital Group (ICP) 2,043.00p 2.18%
Ashtead Group (AHT) 5,610.00p 1.93%
Sage Group (SGE) 710.20p 1.78%
Lloyds Banking Group (LLOY) 45.51p 1.58%
Standard Chartered (STAN) 435.40p 1.56%
FTSE 100 - Fallers
Melrose Industries (MRO) 166.45p -2.60%
Rio Tinto (RIO) 4,757.50p -1.14%
CRH (CDI) (CRH) 3,376.00p -1.00%
International Consolidated Airlines Group SA (CDI) (IAG) 186.12p -0.95%
Antofagasta (ANTO) 1,338.00p -0.85%
Hikma Pharmaceuticals (HIK) 2,366.00p -0.76%
Evraz (EVR) 568.00p -0.66%
Persimmon (PSN) 2,574.00p -0.62%
DCC (CDI) (DCC) 6,096.00p -0.55%
BT Group (BT.A) 150.75p -0.46%
FTSE 250 - Risers
Greggs (GRG) 3,154.00p 9.78%
AO World (AO.) 166.90p 5.43%
Baltic Classifieds Group (BCG) 194.50p 5.14%
Darktrace (DARK) 830.50p 5.06%
Reach (RCH) 358.50p 4.82%
Trustpilot Group (TRST) 385.60p 4.22%
Future (FUTR) 3,706.00p 3.23%
Virgin Money UK (VMUK) 194.95p 2.71%
Watches of Switzerland Group (WOSG) 1,022.00p 2.61%
Restaurant Group (RTN) 102.60p 2.60%
FTSE 250 - Fallers
BH Macro Ltd. GBP Shares (BHMG) 3,530.00p -2.75%
Babcock International Group (BAB) 358.40p -2.56%
Harbour Energy (HBR) 365.40p -2.35%
Aston Martin Lagonda Global Holdings (AML) 1,743.50p -2.24%
TP Icap Group (TCAP) 149.84p -2.18%
Drax Group (DRX) 490.00p -2.10%
Elementis (ELM) 142.50p -1.66%
Vesuvius (VSVS) 465.00p -1.65%
Wizz Air Holdings (WIZZ) 5,038.00p -1.60%
Endeavour Mining (EDV) 1,665.00p -1.48%