FTSE 100 ends week on low note | Galliford Try positive
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5pm: FTSE weakened
Far from breaking through 7,400 and returning to pre-pandemic levels, the FTSE 100 ended the session down 36.27 points, or 0.5%, at 7,347.91.
Burberry rose 4%, the best large-cap performer, clawing back some losses from Thursday.
Energy services group Wood slid 9.10p (4.53%) after announcing a profits warning and falling more than 8% in early trade.
New Covid concerns in Europe hit the travel sector. British Airways’ parent International Consolidated Airlines Group fell 2.9%. Cruise ship firm Carnival shed 3.9%.
Analysts say there is also growing expectation of an interest rate rise next month after the Bank of England unexpectedly kept the rate unchanged last week.
9.30am: Wood falls on guidance
Wood Group fell 8.43% to 184.05p after cutting its full-year revenue and earnings guidance, as did AstraZeneca after its quarterly profit missed expectations, although the company said it would start making a profit from its Covid vaccine from the fourth quarter onwards.
On the upside, housebuilder Redrow was on the rise, up nearly 2% at 639.60p after saying it expects 2022 results to be similar to those achieved in 2019.
The FTSE 100 was down 0.3% at 7,361.88 as inflation continued to weigh on sentiment.
7am: Galliford Try confident
Construction and civil engineering group Galliford Try said its operations are performing well, as it manages inflation and supply challenges. It maintains a strong cash position with margins in line with the board’s expectations.
In a pre-AGM statement it said its acquisition of the water operations and specialist water process and control businesses of nmcn from administration is progressing well.
“We are encouraged by the continuing pipeline of new opportunities that align to our strategy and chosen sectors, and the Government’s planned investment in infrastructure and economic recovery.”
The board said it is confident of meeting its objectives for the current financial year and in its plans to deliver strong performance and long-term sustainable value for all stakeholders.
7am: Robust Redrow
Redrow chairman Richard Akers, will tell today’s AGM that the house builder has entered the new financial year in robust shape and trading has remained strong.
“Despite the well publicised material shortages and supply interruptions facing the industry we are working successfully with our longstanding supply partners to ensure build output remains at normal levels.
“We estimate that overall build cost inflation will be c5% for the current financial year,” he will say.
The value of net private reservations in the 19 weeks to 5 November was 2% above the prior year at £672m (2021: £658m).
The private revenue per outlet per week was £309k compared to £298k last year.
Reservations per outlet per week for the period were a more normal 0.68 compared to the unusually high 0.75 last year. Help to Buy accounted for only 9% of private reservations in the period.
7am: Wood review
John Wood Group may split off part of its consulting business to unlock value.
The Aberdeen-based company believes value in that part of the business dealing with the built environment is not currently being recognised in its market capitalisation and has initiated a review.
It will also assess how best to take advantage of the positive trends and investment opportunities in energy transition and industrial decarbonisation where the company is already a global leader.
The review is taking place against the backdrop of improving momentum in many of Wood’s markets following the challenging market conditions created by the impact of Covid-19.
“Overall, we expect to deliver improved revenue and earnings in the second half of 2021 relative to H1 2021,” said the company.
The FTSE 100 is close to breaking through 7,400 after nearing pre-pandemic levels yesterday.
However, in the US, the Dow Jones dived 159 points, although the S&P 500 put on 3 points.
Asian markets have been buoyant this morning with Japan’s Nikkei 225 up 340 points and Hong Kong’s Hang Seng is up 54 points.