Direct Line Insurance Group, Rolls-Royce and Taylor Wimpey

“Blue-chips opened on the front foot as investors welcomed earnings from companies including BP, Rolls-Royce and Centrica. Traders will be keeping a close eye on the latest UK PMI reading, due later this morning,” says AJ Bell Investment Director Russ Mould.

“Direct Line Insurance Group topped the FTSE100 board in early trading following a strong first half performance. Investors were particularly impressed by the group’s aim to increase its regular dividend in line with business growth, which is expected to be 2-3% per year over the medium term. The group’s first half operating profits were up 9.5% and there was a 5% increase in gross written premium to £1,694.2m. The group’s shares were up by more than 6.9%.

“Rolls-Royce’s shares surged in early trading after it swung back into the black in the first half. Civil aerospace large engine deliveries increased 27% and restructuring savings were ahead of plan. The outlook for its traditional offshore markets, though, remains challenging and is not expected to start to stabilise until next year. Rolls-Royce’s shares were up by over 6.7%.

“Housebuilder Taylor Wimpey had a positive first half, supported by favourable housing market fundamentals and good customer confidence. Taylor Wimpey completed a total of 6,580 homes in the UK, excluding joint ventures, in the first half, an increase of 9.3% on last time. Taylor Wimpey’s shares were up by more than 2.7% in early trading.”

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