UK stocks open 0.7% lower as Hong Kong tensions boil

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UK stocks opened lower on Friday as investors prepared for Donald Trump to outline America's response to political tensions in Hong Kong that are further straining US-Sino relations.

At 0822, the benchmark FTSE 100 index was down 41.14 points, or 0.7%, at 6,177.65.

Trump was scheduled a news conference later on Friday.

Pharma giant AstraZeneca added 1.4% to £88.19 after reporting a clinical trial of a drug to treat non-small cell lung cancer reduced the risk of disease recurrence or death by about 80%.

Building products supplier SIG jumped 8.2% to 30.28p despite it swinging to a full-year loss after its sales fell and it wrote down the value of assets, and unveiling plans to raise £150m from a share issue.

SIG said investment manager Clayton, Dubilier & Rice had conditionally agreed to invest up to £85m in the company, via the equity raising, and take two board seats.

Textile services provider Johnson Service dropped 7.7% to 132p, having detailed plans to raise about £85m through a discounted share placing.

General merchandise retailer B&M European Value Retail gained 4.2% after it 384.99p reported strong revenue growth, driven by DIY and gardening categories.

B&M European Value Retail, however, said it did not expect the momentum to continue as lockdown measures ease.

Real estate investor TR Property Investment Trust fell 0.4% to 351.13p, even as lifted its divided after it posted a negative annual performance that nevertheless beat its benchmark.

The fund declared a final dividend of 8.8p per share, up 2.3% on-year, bringing total dividends for the year to 14p per share, up 3.7%.

Schroder Oriental Income Fund rose 0.3% to 203.5p after it posted a negative first-half performance but bumped up its dividend, despite warning of more uncertainty ahead.

The fund declared two interim dividends for the first two quarters of the financial year amounting to 3.8p per share, up from 3.6p on-year.

Hostel company Safestay reversed 1.3% to 14.8p as it posted a full-year loss after a rise in revenue was offset by higher finance costs.

Safestay said it would open hostels in a staggered manner 'over the course of 2020, as and when we believe they can be profitable'.

Legal business DWF slumped 8.8% to 73.94p after it warned on profit and said chief executive Andrew Leaitherland had stood down, with immediate effect.

Brewing and pub company Young & Co.'s Brewery shed 3.3% to £11.31 on announcing that it would not pay an interim dividend for its current financial year.

Outdoor advertising group Ocean Outdoor rallied 14% to 6.3p, having secured a £35m financing facility, comprising a term loan and revolving credit facility.

Smart meter installer Smart Metering Systems ticked 4.2% higher to 625.1p on announcing that it planned to commence a phased resumption of all non-essential field work from the beginning of June.