London midday: Stocks maintain gains amid weaker pound; BoE eyed

(Sharecast News) - London stocks were still in the black by midday on Wednesday, with a weaker pound providing a boost ahead of the Bank of England's latest policy announcement this week. The FTSE 100 was up 0.5% at 8,357.98.

Russ Mould, investment director at AJ Bell, said: "The FTSE 100 continues to forge to new all-time highs with sterling weakness providing the index with a bit of a kicker.

"A fall in the domestic currency is typically helpful to the FTSE 100 because it boosts the relative value of its dominant overseas earnings.

"Currency traders are betting against the pound ahead of the Bank of England's latest meeting tomorrow, amid a growing expectation it will cut rates earlier than counterparts at the US Federal Reserve.

"It's extremely unlikely there will be any action tomorrow but the market will be watching the surrounding commentary for any clues on when the Bank of England might take the plunge on rates."

In equity markets, Informa jumped as the B2B events, publishing and data group lifted its share buyback programme by 50% and announced a strong operating performance for the first four months of the year, with revenues, profits and cash flow expected to reach the upper end of guidance.

The company said it has raised its 2024 share repurchase programme by a further £160m to £500m.

AstraZeneca rose after announcing the withdrawal of its Covid-19 vaccine worldwide just months after admitting it can cause a rare and potentially dangerous side effect.

OSB Group surged as it said its financial and operational performance in the first quarter was stable and underlying net interest margin was on track to meet full-year guidance.

Pub group JD Wetherspoon rallied after saying it expects full-year profits to be towards the top of market expectations as it reported a 5.2% jump in like-for-like third-quarter sales, boosted by sales of traditional ales and Guinness.

British Gas owner Centrica was trading higher after an upgrade to 'buy' at UBS.

On the downside, Direct Line fell even as the insurer reported a large rise in first-quarter written premiums as it hammered consumers with price hikes.

Technical instruments maker Renishaw lost ground as it lowered full-year guidance amid what it described as "mixed" markets as earnings fell over the first nine months of its financial year. The company said it now expects revenue to be in the range of £680m to £700m and adjusted profit before tax of £122m to £135m. This compares to previous guidance of between £675m and £715m and £122m to £147m.

Market Movers

FTSE 100 (UKX) 8,357.98 0.53% FTSE 250 (MCX) 20,425.87 0.06% techMARK (TASX) 4,726.72 0.54%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 183.10p 3.21% Informa (INF) 852.80p 2.57% AstraZeneca (AZN) 12,374.00p 2.11% Smurfit Kappa Group (CDI) (SKG) 3,824.00p 2.08% Halma (HLMA) 2,331.00p 2.06% RS Group (RS1) 802.00p 1.91% Diageo (DGE) 2,806.50p 1.85% Rightmove (RMV) 564.00p 1.84% Centrica (CNA) 133.40p 1.72% Tesco (TSCO) 309.40p 1.68%

FTSE 100 - Fallers

Antofagasta (ANTO) 2,157.00p -1.87% Phoenix Group Holdings (PHNX) 508.00p -1.84% Glencore (GLEN) 460.60p -1.57% BP (BP.) 496.75p -1.38% Intermediate Capital Group (ICG) 2,152.00p -1.28% Airtel Africa (AAF) 114.60p -1.12% Rio Tinto (RIO) 5,530.00p -1.09% Vodafone Group (VOD) 67.20p -1.06% BT Group (BT.A) 104.35p -1.04% Flutter Entertainment (DI) (FLTR) 16,045.00p -0.96%

FTSE 250 - Risers

Wizz Air Holdings (WIZZ) 2,156.00p 3.55% OSB Group (OSB) 442.40p 3.12% Wetherspoon (J.D.) (JDW) 749.50p 3.02% Trustpilot Group (TRST) 207.50p 2.47% Senior (SNR) 169.20p 1.68% Mitie Group (MTO) 121.00p 1.68% C&C Group (CDI) (CCR) 170.60p 1.67% Bakkavor Group (BAKK) 123.00p 1.65% NextEnergy Solar Fund Limited Red (NESF) 75.95p 1.54% Discoverie Group (DSCV) 746.00p 1.50%

FTSE 250 - Fallers

Tritax Eurobox (GBP) (EBOX) 61.10p -3.63% North Atlantic Smaller Companies Inv Trust (NAS) 4,020.00p -2.66% Direct Line Insurance Group (DLG) 184.80p -2.07% Moonpig Group (MOON) 152.20p -1.93% Playtech (PTEC) 490.50p -1.90% Renishaw (RSW) 4,085.00p -1.68% Ascential (ASCL) 312.80p -1.64% Carnival (CCL) 1,038.00p -1.56% Pennon Group (PNN) 705.50p -1.54% JPMorgan Japanese Inv Trust (JFJ) 520.00p -1.52%