London midday: Stocks stay up as Burberry, StanChart gain

(Sharecast News) - London stocks were still a little firmer by midday on Monday, helped along by solid performances from Standard Chartered and Burberry, but gains were unspectacular as US debt ceiling talks remained in focus. The FTSE 100 was up 0.2% at 7,768.12.

Victoria Scholar, head of investment at Interactive Investor, said: "China-linked stocks like Burberry and Standard Chartered are at the top of the large-cap index following positive price action overnight from the Shanghai Composite and the Hang Seng.

"As the US debt ceiling deadline draws closer, President Biden and House Republican speaker Kevin McCarthy are expected to hold further talks today following a phone call on Sunday as investors pray that a US default will be averted.

"Meanwhile US-Sino trade tensions are escalating after Beijing banned Micron Technologies from selling semiconductors to key industries in China, a move strongly opposed by Washington. Shares in Micron are trading lower by more than 5% in Frankfurt while the Hang Seng Technology index rallied sharply."

On home shores, data out earlier showed that house prices hit a fresh high in May as market conditions steadied.

According to Rightmove's latest house price index, average asking prices rose by 1.8% in May, the biggest so far this year and notably higher than May 2022, when they increased by 1%. It was also a notable improvement on April's 0.2% increase.

As a result, the average asking price of a property coming to market now stands at £372,894.

Year-on-year, house prices were 1.5% higher.

Sellers were increasingly confident about asking prices, Rightmove noted, as the market continued to recover from the impact of last autumn's disastrous mini budget. Buyer demand was also 3% higher than in May 2019, prior to the pandemic, while agreed sales were just 3% lower.

Tim Bannister, director of property science at Rightmove, said: "This month's strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we'd usually see such a big monthly increase earlier in the spring season.

"One reason for this increased confidence may that the gloomy start-of-the-year predictions for the market are looking increasingly unlikely: more likely the market will continue to transition to a more normal activity level this year following the exceptional activity of the pandemic years.

"Steadying mortgage rates and a generally more positive outlook for the economy are also contributing to more seller confidence."

In equity markets, StanChart and Burberry were among the top performers, while NatWest advanced after the UK government said it has cut its stake in the bank to 38.6% via £1.26bn off-market buyback deal.

BT Group got a boost as Citi reiterated its 'buy' rating on the shares and placed them on its 'European Focus List'.

Software firm Kainos rallied as it reported a jump in full-year profit and revenue amid "robust" underlying demand.

Ryanair flew higher after saying it bounced back to a near-record annual profit following a "strong" post-Covid recovery. BA and Iberia owner IAG also rose.

On the downside, veterinary pharmaceuticals group Dechra Pharmaceuticals tumbled as it warned that full-year underlying operating profit will be below guidance of £186m due to de-stocking in the US and UK.

Market Movers

FTSE 100 (UKX) 7,768.12 0.15% FTSE 250 (MCX) 19,280.40 -0.05% techMARK (TASX) 4,725.53 0.23%

FTSE 100 - Risers

Standard Chartered (STAN) 656.60p 3.56% BT Group (BT.A) 148.80p 2.66% JD Sports Fashion (JD.) 163.10p 2.42% Burberry Group (BRBY) 2,345.00p 2.40% Beazley (BEZ) 624.00p 1.63% International Consolidated Airlines Group SA (CDI) (IAG) 159.75p 1.59% Ocado Group (OCDO) 400.20p 1.57% Airtel Africa (AAF) 117.80p 1.55% HSBC Holdings (HSBA) 619.90p 1.49% Associated British Foods (ABF) 1,921.50p 1.40%

FTSE 100 - Fallers

Halma (HLMA) 2,440.00p -2.32% Glencore (GLEN) 430.45p -1.02% Fresnillo (FRES) 658.80p -0.90% Convatec Group (CTEC) 224.20p -0.88% Rio Tinto (RIO) 4,911.50p -0.75% Sainsbury (J) (SBRY) 279.10p -0.68% Unilever (ULVR) 4,242.50p -0.67% BP (BP.) 478.35p -0.63% Smiths Group (SMIN) 1,700.50p -0.61% Weir Group (WEIR) 1,800.50p -0.61%

FTSE 250 - Risers

Kainos Group (KNOS) 1,268.00p 3.59% PureTech Health (PRTC) 213.00p 3.40% Man Group (EMG) 225.30p 3.40% NCC Group (NCC) 102.00p 3.34% Watches of Switzerland Group (WOSG) 683.00p 3.33% Intermediate Capital Group (ICP) 1,362.00p 2.79% Diversified Energy Company (DEC) 95.15p 2.53% Investec (INVP) 449.50p 2.39% Marshalls (MSLH) 305.60p 2.14% Ashmore Group (ASHM) 239.00p 2.14%

FTSE 250 - Fallers

Dechra Pharmaceuticals (DPH) 3,200.00p -12.33% UK Commercial Property Reit Limited (UKCM) 51.60p -3.37% Bakkavor Group (BAKK) 92.80p -2.32% Syncona Limited NPV (SYNC) 157.40p -2.24% Centamin (DI) (CEY) 103.30p -2.18% Future (FUTR) 876.50p -2.18% Rotork (ROR) 335.00p -2.10% Coats Group (COA) 70.50p -2.08% Target Healthcare Reit Ltd (THRL) 81.80p -2.04% BlackRock World Mining Trust (BRWM) 618.00p -1.90%