London midday: Stocks edge up as IAG flies higher on upgrades

(Sharecast News) - London stocks had edged higher by midday on Friday in quiet trade, with IAG and Vodafone leading the charge, as investors continued to mull another hotter-than-expected US inflation reading. The FTSE 100 was up 0.2% at 7,757.28.

Richard Hunter, head of markets at Interactive Investor, said: "Investor inflation jitters have not been far from the surface over recent months and the latest release resulted in markets touching on the brakes.

"The wholesale producer price index showed a reading at the headline level of 0.6% against an expected 0.3%, while the core figure which excludes food and energy came in at 0.3%, marginally above estimates of 0.2%.

"The economic picture was further complicated by a rise of 0.6% in retail sales, albeit slightly shy of estimates, implying that consumer strength remains intact. While the figures were far from startling, investors nonetheless needed to reassess both whether there is any possibility of inflation accelerating once more, and the knock-on impact that would have on the Federal Reserve's decision to reduce interest rates. As such, the Fed's policy meeting next week will assume extra significance given this latest data release."

In equity markets, British Airways and Iberia owner IAG flew to the top of the FTSE 100 after upgrades to 'outperform' at both Raymond James and at BNPP Exane.

Sticking with broker notes, Mondi was lifted by an upgrade to 'buy' from 'hold' at Jefferies, while Smurfit gained after an upgrade to 'overweight' at Morgan Stanley.

British Land and Derwent London both benefitted from upgrades to 'buy' at Shore Capital.

Vodafone rallied as it emerged that Swisscom will take over the London-listed company's Italian unit for €8bn, creating the country's second-largest broadband provider.

Scottish Mortgage Investment Trust advanced after saying it was making at least £1bn available for buybacks over the next two years.

Volution Group surged as it said full-year earnings per share were set to be ahead of consensus expectations following a "strong" first half.

Heat treatment and thermal processing services specialist Bodycote rose as it delivered an increase in annual profits, driven by a strong performance at its aerospace and defence division.

Berkeley Group was a touch higher as it reiterated its full-year outlook and said it had secured the bulk of sales for the next financial year.

Barratt and Redrow fell after the UK's competition regulator said it was taking an initial look into Barratt's £2.52bn takeover of its homebuilding rival.

Bank of Georgia fell even as it posted a jump in full-year income, boosted by strong lending and favourable macroeconomic conditions.

Market Movers

FTSE 100 (UKX) 7,757.28 0.18% FTSE 250 (MCX) 19,546.99 0.31% techMARK (TASX) 4,492.34 -0.27%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 156.65p 5.17% Vodafone Group (VOD) 68.76p 4.04% Scottish Mortgage Inv Trust (SMT) 807.40p 3.38% Glencore (GLEN) 427.40p 2.43% Smurfit Kappa Group (CDI) (SKG) 3,570.00p 2.23% Smith (DS) (SMDS) 343.30p 2.14% Mondi (MNDI) 1,338.50p 2.06% Fresnillo (FRES) 473.90p 2.05% Centrica (CNA) 132.40p 2.04% Admiral Group (ADM) 2,737.00p 2.01%

FTSE 100 - Fallers

Reckitt Benckiser Group (RKT) 4,950.00p -5.75% Haleon (HLN) 320.90p -1.23% GSK (GSK) 1,667.60p -1.20% Flutter Entertainment (DI) (FLTR) 17,255.00p -1.17% Melrose Industries (MRO) 609.40p -0.94% Intertek Group (ITRK) 4,904.00p -0.85% Rentokil Initial (RTO) 474.90p -0.79% Pearson (PSON) 1,019.50p -0.78% Unilever (ULVR) 3,855.00p -0.77% M&G (MNG) 230.40p -0.73%

FTSE 250 - Risers

Volution Group (FAN) 447.80p 5.36% Bodycote (BOY) 661.50p 4.75% FirstGroup (FGP) 172.60p 4.29% Direct Line Insurance Group (DLG) 216.10p 3.40% Energean (ENOG) 1,055.00p 3.03% PPHE Hotel Group Ltd (PPH) 1,305.00p 2.76% 4Imprint Group (FOUR) 6,180.00p 2.49% Tullow Oil (TLW) 27.82p 2.28% Lancashire Holdings Limited (LRE) 619.50p 2.23% Oxford Instruments (OXIG) 2,130.00p 2.16%

FTSE 250 - Fallers

Bank of Georgia Group (BGEO) 4,985.00p -3.76% Domino's Pizza Group (DOM) 363.20p -2.73% W.A.G Payment Solutions (WPS) 74.20p -2.37% Aston Martin Lagonda Global Holdings (AML) 162.30p -2.29% Ferrexpo (FXPO) 50.60p -1.84% PZ Cussons (PZC) 87.00p -1.69% Darktrace (DARK) 482.50p -1.61% Jupiter Fund Management (JUP) 90.20p -1.58% Wood Group (John) (WG.) 143.50p -1.58% Renishaw (RSW) 4,126.00p -1.53%