Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
By midday UK stocks had lost some of the spark seen in early trading. Thursday's session began strongly with the FTSE 100 and FTSE 250 both up by 1%. At 12pm, approximately half of those gains had disappeared, with the FTSE 100 trading 0.4% higher at 7,067 and the FTSE 250 trading 0.5% higher at 22,482.
Euro zone manufacturing activity expanded at its fastest pace on record in June, according to an IHS Markit survey, which also showed factories faced the steepest rise in raw materials costs in more than two decades. The Purchasing Managers' Index rose to 63.4 in June from May's 63.1. A figure above 50 represents expansion.
In contrast, growth in the UK's manufacturing industry slowed over the last month. The PMI figure fell to 63.9 in June, down from May's figure of 65.6.
In corporate news, Primark owner Associated British Foods raised its guidance for full year pre-tax earnings to 'not less than £550 million' against market estimates of £525 million.
The firm said trading at both the clothing retailer and its sugar division was ahead of previous management forecasts. Its shares gained 4.2% to £23.08, making it the second-best performing FTSE 100 stock after precious metals miner Fresnillo which jumped 4.6% to 806.6p. Gold traded 0.4% higher at $1,778 per ounce.
Sports retailer JD Sports Fashion said it was on track to deliver profit of at least £550 million following encouraging reopening in the UK and enhanced demand in the US as the government rolled out further stimulus cheques. Its share price rose 2.7% to 944.2p.
Shares in software company Aveva advanced 2.6% to £38.06 as it unveiled new financial targets following a 'good' start to fiscal 2022. The company achieved approximately 10% revenue growth in the first two months of the financial year.
Specialty plastics maker Biome Technologies warned that revenues this year and next year would be 'materially below' market forecasts after a US customer delayed orders due to issues at its plant. The firm also blamed delays and cancellations in transporting its products by sea. Its shares crumbled 26% to 355p.
Online electrical retailer AO World reported a sharp increase in annual profit as revenue was driven by society's continued shift to online shopping. For the year ended 31 March 2021, pre-tax profit jumped 1,900% to £20 million and revenue increased 62% to £1.66 billion. The shares nudged ahead 0.2% to 253.6p.
Building materials supplier Grafton entered into an agreement to sell its traditional merchanting business in the UK for an enterprise value of £520 million to Huws Gray. Its share price traded 4.2% higher at £11.95 following the announcement.
Elsewhere, power company Drax agreed to acquire a 20% stake in Alabama Pellets, the joint venture which owns the Demopolis and Aliceville pellet plants, from The Westervelt Company, for $29.7 million.