Berkeley, Porvair and IAG

“Blue-chips were virtually flat in early trading after UK Prime Minister Theresa May struck a deal with the EU to move Brexit talks on to the next phase,” says AJ Bell Investment Director Russ Mould.

“Housebuilder Berkeley topped the blue-chip board in early trading after strong first half results and an increase in its pre-tax profit guidance for the five-year period which began in May last year to £3.3bn from £3bn . First half profits were up 35.8% but the current year’s results will be a peak for the group before returning to more normal levels in 2018-19. The builder sold 2,117 homes in the six month period at an average price of £719,000 and continues to see strong demand in London and the South East despite an uncertain economic and political outlook. Berkeley’s shares were up by more than 7.6%.

“Filtration and environmental technology group Porvair’s shares surged following a bullish trading update. Full-year earnings are expected to be ahead of expectations and the group has healthy order books for the start of its new financial year. Porvair has also bolstered its laboratories division with the takeover of Dutch company Rohasys for an undisclosed sum. Porvair’s shares were up by over 8.8% in early trading.

“International Airlines Group’s shares rose after its British Airways arm announced the closure of its defined benefit pension scheme. This will now be replaced by a flexible scheme which will give members the choice of taking cash instead of a pension. The group has pumped billions of pounds into the defined benefit scheme but the deficit has continued to rise due to a combination of low interest rates and increased life expectancy. IAG’s shares were up by more than 1.2%.”

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