Easyjet helps give FTSE 100 pre-budget lift

Market report Scott Reid

Britain’s benchmark share index closed in positive territory as a degree of optimism seeped into the market on the eve of Budget Day.

A surge in Easyjet shares on the back of reassuring noises from the low-cost carrier helped support the market, with the FTSE 100 index closing 21.88 points firmer at 7,411.34.

David Madden, market analyst at CMC Markets UK, said: “Shares in Easyjet are up after the airline revealed a 9.7 per cent rise in passengers to 80.2 million – a record high. Revenues were up 8.1 per cent and pre-tax profits jumped by 3 per cent – when you exclude the adverse currency movements.

“The share price has been pushing higher over the past 13 months, and if it clears the 200week moving average at 1,430p, it could target 1,600p.”

Investors failed to warm to a set of solid numbers from catering giant Compass Group. Despite news of some chunky increases in profit before tax and revenues, as well as a hike in the dividend, shares eased 53p to 1,538p.

Banknote printer De La Rue posted a 29 per cent surge in revenues to £244.7 million for the six months to 30 September as it saw a boom in orders for its polymer substrate, used for the new banknotes.

The group said polymer sales volumes surged 570 per cent to 400 tonnes in the half-year. Operating profits lifted 7 per cent to £24.6m. At the close of play, the shares slipped 10.5p to 635p.

Scottish temporary power firm Aggreko saw its shares slump after it reported weak trading in its power solutions utility arm. It closed at 862p, a fall of 108p or more than 11 per cent. The airline’s shares took off after posting well-received results, with one analyst noting that its stock has been rising since October 2016. The Glasgowbased temporary power provider posted a rise in third-quarter revenue but said problems in Argentina persisted.