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The FTSE 100 pushed ahead 0.3% to 7,090 on Tuesday, led by gains across multiple sectors including banking, tobacco and beverages. A 0.3% decline in sterling against the US dollar to $1.3839 benefited various FTSE stocks which have large US dollar earnings including CRH and Ferguson.
Housebuilders were lifted by the latest Nationwide house price index, which surged 13.4% in June compared with last year, the biggest increase in more than 16 years, ahead of the tapering of stamp duty land tax. The average house now costs £245,432 or almost £30,000 more than it did a year ago.
Persimmon led the pack of listed housebuilders, rising 1.5% to £29.80. Meanwhile, Countryside Properties announced that chief financial officer Mike Scott had resigned to take up the same role at larger rival Barratt Developments.
Rumours of private equity interest lifted shares in office rental firm IWG by 6% to 319p in early trading. News reports suggested IWG was in talks last month with US private equity firm CC Capital over a bid valuing the firm at more than £4 billion compared with a current market value of £3 billion. However, CC Capital issued a statement at 9.18am saying it wasn't going to make an offer.
Healthcare services group UDG Healthcare received an increased bid from private equity suitor Clayton, Dubilier & Rice. CD&R agreed to raise its offer from £10.23 to £10.80 per share, a 5.6% increase, taking the premium to 28% over the closing price of UDG on 11 May, the day before it made its offer, and a premium of more than 12% to UDG's all-time closing high.
Asset manager Standard Life Aberdeen revealed it had sold a 5% stake in the life insurance unit of Indian bank HDFC for the equivalent of £652 million net of taxes and costs. The firm still holds a 3.9% stake in the Indian insurer worth £530 million at current market prices.
Drilling rig specialist Lamprell warned that it faced a period of severe liquidity constraints until 'critical' new funding was identified and that therefore there were 'material uncertainties relating to the going concern assumption'.
'To fulfil its near-term working capital needs and then to meet its medium-term strategic objectives, the group must complete a new funding arrangement of $120 million to $150 million by the end of Q3 2021 through debt and/or equity,' the company added. Its shares fell 24% to 51.5p.
Energy services group Hunting posted a return to positive operating profits in the second quarter driven by an improving market in US onshore oilfield activity despite 'strong capital discipline' by energy firms.
The firm pointed to a 'significantly improved outlook for the industry' next year and beyond, supported by the strong oil price environment and rising cash flows among its customers. Nevertheless, its shares fell 2.7% to 238.5p.