London open: FTSE gains on strong US cues

(Sharecast News) - London stocks rose in early trade on Friday, taking their cue from a positive close on Wall Street, where the S&P 500 and Nasdaq hit new highs. At 0825 BST, the FTSE 100 was up 0.2% at 8,994.12.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "The FTSE 100 has popped its head back over the 9,000 parapet this morning.

"The FTSE's also catching a favourable breeze from fresh highs for Wall Street. Strong results from the world's biggest semiconductor manufacturer, Taiwan's TSMC also helped to lift American technology stocks, with the Nasdaq composite having the best day of the major indices.

"There were signs of strength elsewhere as soft drink and snacking powerhouse PepsiCo breezed past analyst forecasts despite a lack of momentum in product volumes. However strategic efforts to reinvigorate core brands and lean into healthier snacking are expected to fuel mid-single digit revenue growth for the 'next few quarters'. The shares finished up over 7% on the day."

In UK equity markets, consumer products giant Reckitt Benckiser rose as it said it was selling off a controlling share in its Essential Home division to private equity firm Advent International in a deal that values the portfolio at $4.8bn.

Reckitt will retain a 30% equity stake in the business and said it plans to return $2.2bn to shareholders via a special dividend along with a share consolidation upon completion.

BP gushed higher as it agreed to sell its US onshore wind business, BP Wind Energy, to LS Power, a development, investment and operating company focused on the North American power and energy infrastructure sector.

No financial details were disclosed, but BP said that once the deal completes, BP Wind Energy will be owned and operated as part of LS Power portfolio company Clearlight Energy, increasing its operating fleet to around 4.3GW.

Industrial parts maker Senior surged as it announced the sale of its aerostructures business to Sullivan Street Partners, a UK-based private equity investor, for a total enterprise value of up to £200m. Proceeds from the sale will be used to reduce net debt and fund a £40m share buyback.

Luxury fashion house Burberry nudged higher as it said comparable sales fell by 1% in the three months to 28 June, beating expectations for a 3% decline.

On the downside, GSK tumbled after the US Food and Drug Administration recommended against approving its blood cancer drug Blenrep.

Barclays was also weaker after a downgrade to 'neutral' from 'buy' at Citi.

Softcat was under the cosh as JPMorgan placed the shares on 'negative catalyst watch' ahead of results.

Market Movers

FTSE 100 (UKX) 8,994.12 0.24% FTSE 250 (MCX) 21,829.55 0.29% techMARK (TASX) 5,196.09 0.25%

FTSE 100 - Risers

Fresnillo (FRES) 1,487.00p 1.85% Reckitt Benckiser Group (RKT) 5,064.00p 1.65% Antofagasta (ANTO) 1,847.50p 1.43% BP (BP.) 402.70p 1.37% Rio Tinto (RIO) 4,484.00p 1.23% Glencore (GLEN) 307.00p 1.22% Barratt Redrow (BTRW) 381.80p 1.19% Shell (SHEL) 2,640.00p 1.19% Airtel Africa (AAF) 190.30p 1.17% Anglo American (AAL) 2,222.00p 1.14%

FTSE 100 - Fallers

GSK (GSK) 1,328.00p -6.02% Mondi (MNDI) 1,156.50p -0.94% Rolls-Royce Holdings (RR.) 1,001.00p -0.89% Barclays (BARC) 348.15p -0.87% NATWEST GROUP (NWG) 495.20p -0.26% HSBC Holdings (HSBA) 930.60p -0.23% Babcock International Group (BAB) 1,064.00p -0.19% Lloyds Banking Group (LLOY) 78.06p -0.18% Alliance Witan (ALW) 1,252.00p -0.16% British American Tobacco (BATS) 3,812.00p -0.03%

FTSE 250 - Risers

Discoverie Group (DSCV) 744.00p 4.64% Ocado Group (OCDO) 289.90p 3.91% Burberry Group (BRBY) 1,285.00p 2.96% Wickes Group (WIX) 229.50p 2.68% Volution Group (FAN) 646.00p 2.38% Pennon Group (PNN) 504.50p 2.17% Bridgepoint Group (Reg S) (BPT) 361.60p 1.92% Close Brothers Group (CBG) 412.20p 1.88% Indivior (INDV) 1,197.00p 1.79% Endeavour Mining (EDV) 2,202.00p 1.38%

FTSE 250 - Fallers

Softcat (SCT) 1,618.00p -3.35% RS Group (RS1) 565.50p -2.42% Travis Perkins (TPK) 551.50p -2.39% Frasers Group (FRAS) 665.00p -1.99% RHI Magnesita N.V. (DI) (RHIM) 2,850.00p -1.04% 4Imprint Group (FOUR) 3,590.00p -0.97% Mitie Group (MTO) 136.20p -0.73% Bellway (BWY) 2,524.00p -0.55% Bloomsbury Publishing (BMY) 526.00p -0.38% PRS Reit (The) (PRSR) 106.60p -0.37%