London open: Stocks rise on encouraging Chinese data

(Sharecast News) - London stocks rose in early trade on Friday following the release of encouraging Chinese data. At 0820 BST, the FTSE 100 was up 0.9% at 7,738.85.

Figures from the Bureau of National Statistics showed that Chinese retail sales and industrial production grew more than expected in August.

Retail sales were up 4.6% on the year, beating expectations for growth of 3% and coming in ahead of July's 2.5% increase.

Meanwhile, industrial production rose 4.5% in August on the year following 3.7% growth in July, coming in ahead of expectations of 3.9% growth.

However, fixed asset investment was 3.2% higher on the year last month, down from 3.4% in July and below expectations for a 3.3% increase. The data showed a big drop in real estate investment.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "A short, sharp economic recovery in China would help underpin confidence globally. As an export destination for 40 countries, and the largest consumer of commodities in the world, its economic fortunes are closely intertwined with others.

"There are of course some hurdles still to clear, including a creaking real estate market and record unemployment, but this first step should be taken as a positive sign."

In equity markets, luxury fashion brand Burberry was the standout performer on the FTSE 100.

In terms of sectors, however, housebuilders were top, with Persimmon, Taylor Wimpey, Berkeley and Barratt all up.

Games Workshop surged as it said trading for the quarter to August 27 was ahead of expectations, driven by healthy growth across all channels.

In a brief trading update ahead of its annual shareholders meeting next week, the maker of Warhammer said core revenue had risen to £121m for the quarter, ahead of the £106m posted last year with licensing revenue doubling to £6m. Pre-tax profit was estimated at around £57m, up from £39m.

"The board recognises that this performance is better than the prior year but is also aware that it is still early in the financial year. A further update will be given as appropriate," the company added.

It also declared a dividend of 50p per share taking dividends declared so far in 2023/24 to £1.95 per share, up from £1.20 per share a year earlier.

In broker note action, Derwent London was boosted by an upgrade to 'buy' at Goldman Sachs.

London Stock Exchange Group gained after JPMorgan placed the shares on "positive catalyst watch" ahead of the capital markets day in November. JPM, which rates the stock at 'overweight', lifted the price target to 9,920p from 9,867p.

Whitbread was also higher as Barclays named the Premier Inn owner its "preferred pick" in the leisure sector.

Market Movers

FTSE 100 (UKX) 7,738.85 0.86% FTSE 250 (MCX) 18,960.01 0.32% techMARK (TASX) 4,426.70 0.65%

FTSE 100 - Risers

Burberry Group (BRBY) 2,185.00p 3.46% Taylor Wimpey (TW.) 121.80p 3.05% Persimmon (PSN) 1,101.00p 2.75% Barratt Developments (BDEV) 463.20p 2.71% Berkeley Group Holdings (The) (BKG) 4,237.00p 1.92% Whitbread (WTB) 3,709.00p 1.92% Ashtead Group (AHT) 5,268.00p 1.78% Auto Trader Group (AUTO) 625.20p 1.76% Airtel Africa (AAF) 128.50p 1.74% Rightmove (RMV) 568.80p 1.68%

FTSE 100 - Fallers

Admiral Group (ADM) 2,428.00p 0.12% Shell (SHEL) 2,585.50p 0.15% JD Sports Fashion (JD.) 141.05p 0.28% HSBC Holdings (HSBA) 628.90p 0.32% Centrica (CNA) 169.30p 0.36% NATWEST GROUP (NWG) 238.00p 0.42% British American Tobacco (BATS) 2,720.00p 0.46% BAE Systems (BA.) 1,057.00p 0.48% Associated British Foods (ABF) 2,095.00p 0.48% Standard Chartered (STAN) 745.40p 0.49%

FTSE 250 - Risers

Mitchells & Butlers (MAB) 236.00p 3.51% Derwent London (DLN) 1,955.00p 3.00% Molten Ventures (GROW) 263.20p 2.81% CMC Markets (CMCX) 104.80p 2.75% Hipgnosis Songs Fund Limited NPV (SONG) 89.00p 2.30% Bridgepoint Group (Reg S) (BPT) 199.20p 2.26% Spire Healthcare Group (SPI) 221.50p 2.07% Pagegroup (PAGE) 424.80p 2.02% Kainos Group (KNOS) 1,291.00p 1.97% JTC (JTC) 762.00p 1.94%

FTSE 250 - Fallers

Baltic Classifieds Group (BCG) 192.20p -3.80% Tritax Eurobox (GBP) (EBOX) 54.40p -3.72% Allianz Technology Trust (ATT) 266.50p -2.74% JPMorgan Indian Investment Trust (JII) 878.00p -2.66% North Atlantic Smaller Companies Inv Trust (NAS) 3,690.00p -2.64% Caledonia Investments (CLDN) 3,495.00p -2.37% NextEnergy Solar Fund Limited Red (NESF) 87.20p -2.13% Octopus Renewables Infrastructure Trust (ORIT) 87.70p -2.01% Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 268.00p -2.01% Aberforth Smaller Companies Trust (ASL) 1,232.00p -1.75%