UK stocks open flat as investors eye potential US-China trade deal

Writer,

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

UK stocks tracked sideways at the open on Tuesday after the US and China showed further signs of progressing towards a 'phase one' trade deal, though catering group Compass slipped on a disappointing earnings update.

At 0847, the benchmark FTSE 100 index had inched down 0.66 points to 7.395.63.

Compass dropped 5.7% to £19.51 as it reported a fall in profit, despite delivering better-than-expected organic revenue growth, as acquisition costs and a weaker performance in Europe weighed.

Water utility Pennon firmed 2.4% to 948.6p on booking a 22% rise in first-half profit after a focus on cost savings helped offset lower demand for water during a cooler summer. Pennon also lifted its dividend by 6.4%.

Veterinary and pet products group Pets at Home rallied 9.0% to 233.62p after it posted rise in first-half profit, driven by strength in its retail business and a fall in restructuring charges at its veterinary division.

Pets at Home also forecast a full-year profit towards the top end of current market consensus expectations.

Healthcare services group UDG Healthcare gave up 1.6% to 748p, even as it posted a rise in annual profit buoyed by improved operating margins that offset a weaker sales performance.

Convenience food supplier Greencore reversed 5.8% to 233.9p, despite its annual profit more than trebling, as higher margins offset a fall in revenue owing to site disposals and exits.

Specialist lender Paragon Banking gained 0.9% to 508p after it booked a higher underlying annual profit and hiked its dividend 9.3%.

Shaftesbury, a property company focused on London's West End, fell 1.2% to 940p as posted a sharp fall in profit owing to revaluation losses.

The company, however, also lifted its annual dividend by 5.4% after increased rental income helped it boost its underlying earnings.

Meat producer Cranswick gained 2.2% to £32.80 as it reported a rise in first-half profit, led by increased wholesale and export demand for fresh pork and a contribution from the acquisition of Katsouris Brothers.

Flavoring ingredients provider Treatt reversed 2.6% to 426.65p on booking a 28% fall in annual profit, owing to a loss on the disposal of a businesses in Kenya, though its underlying performance improved.

Treatt's pre-tax profit before exceptional items rose 5.2% to £13.3m, as revenue edged up 0.5% to £112.7m.

Structural steel group Severfield shed 1.3% to 75p as it reported a 36% fall in first-half profit, which it pinned on the 'phasing of ongoing contract works' in its current UK and European order book.

Luxury furniture retailer Walker Greenbank gained 0.7% to 75p on news that it had extended its US agreement with distribution partnership with Kravet to include Canada.