FTSE opens 0.2% lower as Delta concerns weigh on commodities

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UK stocks drifted lower in early trading on Monday as concerns about rising infections of the Delta variant, including in China, pressured commodity prices.

At 0827, the benchmark FTSE 100 index was down 10.91 points, or 0.15%, at 7.112,04 following a 1.8% drop in Brent crude.

Wealth manager Hargreaves Lansdown sank 9.7% to £14.8141, even as it reported an 8% rise in annual underlying profit that was boosted by fresh fund inflows.

Hargreaves Lansdown upped its ordinary dividend 3% 38.5p per share, though total dividends fell 8% at 50.5p after it cut its special payout to 12p, down from 17.4p.

While earnings in the current year were expected to grow, Hargreaves Lansdown acknowledged that dealing volumes and client activity had slowed as lockdown restrictions were eased.

Pharmaceutical giant AstraZeneca gained 0.5% to £81.99 after it announced positive trial results for a breast cancer treatment.

AstraZeneca also said a treatment for chronic kidney disease in adults with diabetes had been approved by the European Union.

Recruitment company Page reversed 2.1% to 610p, despite swinging to a £63.7 million first-half profit and reinstating its dividend as demand recovered.

Page reinstated its interim dividend at 4.7p per share and also declared a special dividend of 26.71p per share.

Convenience store group McColl's Retail tumbled 17% to 29.15p on announcing that it was considering a capital raising, confirming media reports.

McColl's said the funds would increase the number of its Morrisons Daily store conversions, accelerate the roll-out of the conversion programme, and strengthen its balance sheet.

Equities investor Smithson Investment Trust edged up 0.1% to £18.8436 after it reported a positive first-half return that nevertheless came in underneath its benchmark.

Smithson's net asset value total return per share for the six months through June was 5.9%, compared to a 12.4% return on the MSCI World Small and Mid Cap Index.

Automotive fluid system manufacturer TI Fluid Systems fell 2.1% to 309p, even as it swung to a €32.9 million first-half profit after demand bounced back following an easing of lockdowns.

TI Fluid Systems held its interim dividend steady at 1.93c per share.

Safety equipment company Halma shed 0.6% to £28.84 on news that it had completed three acquisitions for about £48.8 million, and sold Texecom for £65 million.

The acquisitions -- of Ramtech, Dancutter and Sensitron -- had an aggregate reported revenue of about £20.5 million in the year ended 31 March 2021, Halma said.

Pharmaceutical company Shield Therapeutics firmed 5.9% to 51.9p, having welcomed the publication of positive trial results for an iron deficiency treatment.

Shield said it had noted the recent on-line publication in the American Journal of Kidney Disease showing positive 16-week and long-term study results for ferric maltol.

Cocktail bar owner Nightcap rallied 13% to 24.38p on announcing that it had entered into a lease for a new London Cocktail Club site in central Bristol with a capacity of 310.

Nightcap added that its bars had continued to trade 'well ahead' of its expectations since the relaxation of Covid restrictions 19 July.

Mining company W Resources firmed 3.5% to 7.5p as it upgraded its annual production forecast after it regained access to the higher-grade ore at its La Parrilla tungsten and tin mine in Spain.

Output for the year through December was now expected at the top end of previous guidance of 880 tonnes and 1,000 tonnes of concentrate.