Tue close: Inflation spurs rise in FTSE100
UK shares gained ground on inflation figures but failed to hold above the 7,000-point mark and at the close, the FTSE 100 rose 26.2 extra points, or 0.38%, to end the session at 6,995.10.
UK inflation fell 0.1% in the year to April, the first annual fall in the consumer prices index since the 1960s.
But economists felt that the fall in the inflation was only temporary and suggested it will return to 2% target by the end of the year.
In corporate news property developer Land Securities was a big riser, up 52p or 3.97% to 1,363p after it raised its dividend by 3.7% to 31.85p. This followed a surge in demand for commercial property which has boosted its adjusted net asset value 27.6% to 1,293p. The statement helped lift other property-related stocks.
Vodafone‘s shares fell 2.8% in spite of final results showing a return to growth in the fourth quarter. The telecoms giant’s 7% decline in EBITDA, although anticipated, disappointed analysts who had hoped for more of a boost from the first year of its project spring programme.
Aveva’s adjusted pre-tax profits sank 21% to £62.1m as margins shrank to 29.8% from 33% a year ago. Shares in the company have been inflated recently due to intense bid speculation. The outlook appears tough, said analysts at RBC Capital Markets.
Aberdeen oil company Parkmead rose 0.83% or 1p to 121.25p following yesterday’s placing and statement of intent to grow through acquisition.