UK stocks end strongly on trade optimism

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UK stocks ended Tuesday in positive territory as top US and China trade negotiators continue to work on a potential deal.

The benchmark FTSE 100 index closed 6.85 points, or 0.093% higher to 7,403.14.

The midcap FTSE 250 index closed at a 16-month high, up 0.78%, or 1161.75 points, to 20,864.92.

LARGE AND MID CAP RISERS AND FALLERS

Compass slumped 7.5% to £19.15 as it reported a 3.5% fall in annual pre-tax profit, despite delivering better-than-expected organic revenue growth, as acquisition costs and a weaker performance in Europe weighed.

Quality assurance provider Intertek fell 0.6% to £55.10 even as it reported 7.4% growth in revenue over the 10 months through October.

Water utility Pennon firmed 1.6% to 942p 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 16.1% to 249p on the back of a large 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 underlying profit towards the top end of current market consensus expectations.

Healthcare services group UDG Healthcare gave up 1.3% to 750p, even as it posted a larger annual profit buoyed by improved operating margins that offset a weaker sales performance.

Convenience food supplier Greencore reversed 3.4% to 240p, 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 dipped 0.3% to 502p, despite having booked a higher underlying annual profit and hiked its dividend by 9.3%.

Shaftesbury, a property company focused on London's West End, fell 4.5% to 908p on posting 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 0.9% to £32.36 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.

SMALL CAP RISERS AND FALLERS

Banknote and passport printer De La Rue tumbled 23.5% to 134p as it suspended its dividend after swinging to a first-half loss driven by pain in its currency division and weaker margins.

Flavoring ingredients provider Treatt reversed 1.8% to 430p 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 2.4% to 74.2p 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 fell 5.2% to 70.6p on news that it had extended its US agreement with distribution partnership with Kravet to include Canada.