London midday: Stocks maintain gains as Vodafone rallies
London stocks were still in the black by midday on Tuesday, underpinned by well-received updates from the likes of Vodafone and Morrisons, as investors continued to mull the implications of lockdown easing at home and abroad.
The FTSE 100 was up 0.9% at 5,994.61.
Despite the positive tone, IG analyst Chris Beauchamp noted that sentiment remains cautious as investors watch the situation in China, where the number of new cases coronavirus continues to rise.
"Western economies currently taking small steps towards re-opening and ending lockdowns will be examining the performance of China, just as they monitored its virus containment efforts, in the uncomfortable knowledge that they face the same challenges in bringing their economies back to some semblance of normality," he said.
"For Europe, the test case is Germany, and with infections there on the rise investors fret that there is more economic pain to come as restrictions return."
In equity markets, mobile phone network operator Vodafone pushed higher after it confirmed its dividend but pulled guidance for 2021 due to coronavirus uncertainties as full year core earnings rose 2.6% to €14.9bn.
Standard Life Aberdeen was up as it said estimated assets under management and administration as at 30 April stood at £490bn, with estimated net outflows in the first four months of the year of around £24bn.
Morrisons gained after keeping its dividend options on hold as the supermarket group reported an increase in like-for-like sales for the first quarter fuelled by the Covid-19 crisis.
B&Q and Screwfix owner Kingfisher surged after it posted a 24% decline in first-quarter sales as it took a hit from the coronavirus lockdown but said sales improved at the start of May as stores reopened.
Elsewhere, retailer Marks & Spencer was boosted by an upgrade to ‘overweight’ at Morgan Stanley.
On the downside, property developer Land Securities slid after pulling its final dividend as full-year losses widened and asset values fell. British Land was also on the back foot.
Luxury car maker Aston Martin Lagonda was knocked lower by a downgrade to ‘reduce’ from ‘hold’ at Peel Hunt.
Market Movers
FTSE 100 (UKX) 5,994.61 0.92%
FTSE 250 (MCX) 16,254.62 -0.10%
techMARK (TASX) 3,688.24 1.78%
FTSE 100 - Risers
Vodafone Group (VOD) 122.92p 8.78%
Standard Life Aberdeen (SLA) 225.30p 4.94%
Meggitt (MGGT) 254.50p 3.67%
Morrison (Wm) Supermarkets (MRW) 195.45p 3.55%
Associated British Foods (ABF) 1,781.00p 3.25%
Smith & Nephew (SN.) 1,655.00p 3.02%
BAE Systems (BA.) 517.60p 2.90%
Schroders (SDR) 2,858.00p 2.84%
Phoenix Group Holdings (PHNX) 608.20p 2.70%
Aviva (AV.) 248.70p 2.68%
FTSE 100 - Fallers
Land Securities Group (LAND) 540.00p -14.61%
British Land Company (BLND) 347.10p -9.49%
Polymetal International (POLY) 1,599.00p -3.56%
Whitbread (WTB) 2,742.00p -3.38%
Informa (INF) 419.80p -2.58%
Rolls-Royce Holdings (RR.) 276.90p -2.02%
Evraz (EVR) 248.30p -1.97%
Barratt Developments (BDEV) 500.80p -1.80%
Compass Group (CPG) 1,249.00p -1.65%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,690.00p -1.65%
FTSE 250 - Risers
Micro Focus International (MCRO) 492.10p 10.09%
Kingfisher (KGF) 175.00p 7.73%
Marks & Spencer Group (MKS) 92.00p 5.07%
Bank of Georgia Group (BGEO) 925.00p 4.52%
Watches of Switzerland Group (WOSG) 239.50p 4.13%
Morgan Sindall Group (MGNS) 1,378.00p 3.92%
IP Group (IPO) 55.70p 3.92%
OneSavings Bank (OSB) 253.20p 3.18%
Royal Mail (RMG) 173.90p 3.14%
Worldwide Healthcare Trust (WWH) 3,470.00p 2.81%
FTSE 250 - Fallers
Hyve Group (HYVE) 14.34p -12.56%
Pets at Home Group (PETS) 226.60p -10.43%
Bakkavor Group (BAKK) 74.20p -7.25%
Capita (CPI) 32.38p -6.87%
Marston's (MARS) 30.32p -6.42%
Hammerson (HMSO) 49.05p -5.93%
Aston Martin Lagonda Global Holdings (AML) 40.62p -5.75%
Convatec Group (CTEC) 208.00p -5.11%
Diploma (DPLM) 1,748.00p -5.00%
SSP Group (SSPG) 223.40p -4.86%