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“The FTSE100 opened in negative territory following heavy falls on Wall Street and in Asia overnight on concerns surrounding calls for the possible impeachment of US President Donald Trump,” says AJ Bell Director Russ Mould.
“Investors gave Royal Mail’s full-year figures the stamp of approval with the group’s shares topping the blue-chip board in early trading. Royal Mail has made good progress against all its strategic priorities despite a challenging operating environment. Revenues and pre-tax profits rose and the group’s progressive dividend policy is underpinned by a combination of its strategic approach to costs and more efficient investment spend. Royal Mail’s shares were up by more than 3.2%.
“Bakery group Greggs slipped back in early trading despite increased sales in the 19 weeks to 13 May, Demand for its £2 breakfast continues to grow and the group is investing in further capacity to meet this demand. But investors will be concerned about the effect of input cost inflation which is having a modest impact on margins. This pressure is expected to ease towards the end of the year but will constrain profit growth in the first half. The group’s shares were down by over 1.1%.
“Burberry was an early riser despite revenues and reported pre-tax profits falling in the year to the end of March. This was a period as it laid the foundations for future growth and adapted to a fast changing luxury market. Burberry has seen early benefits from the action it has taken although retail growth was offset by declines in wholesale and licensing. Burberry’s shares were up by more than 1.8%.”
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