British American Tobacco, Laura Ashley and Acacia Mining

“Blue-chips opened on the front foot after falls on Wall Street and a mixed Asia last night although Brexit, UK inflation and sterling's demise remain key factors in trader sentiment. On the economic front, UK's public-sector net borrowing figures are due out this morning, while an EU consumer confidence index is released this afternoon,” says AJ Bell Investment Director Russ Mould.

“British American Tobacco is on track for another good year despite foreign exchange headwinds but it wants to strengthen its momentum by merging with its US partner Reynolds in a deal valued at $47bn. BAT currently owns 42.2% of Reynolds but bringing the two groups together would create a truly global tobacco and ‘next generation products’ company. BAT’s shares were up by more than 3.5% in early trading.

“Laura Ashley’s decision to close its concessions within Homebase stores following their takeover by Australia’s Wesfarmers earlier this year was welcomed by investors with the group’s shares up by over 2.4% in early trading. No material impact on Laura Ashley’s results is expected from the decision and most of the trade it gets from these concessions will be redirected to its stores and its website.

“Acacia Mining's shares jumped after a strong third quarter. Gold sales were 24% higher than a year ago and 1% above production and with higher gold prices, revenues rose by 48% to $285m. The strong operational and financial results represent another significant step forward for Acacia, particularly considering some of the headwinds experienced during the quarter. Acacia’s shares were up by over 46%.”

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