Shares show tiny gains in a positive start DAVID MYRDDIN-EVANS
UK shares just about managed a positive start to the week but gains were tiny as investors begin to question valuations. The FTSE 100 closed at 7,532, less than 100 points from its all-time high. Yet most of the data points to wavering confidence and economic headwinds as Brexit approaches.
Nevertheless, the benchmark index finished up by 0.27% with mining stocks the major drivers. They benefitted from another rise in iron ore prices fuelled by worries of a winter shortage.
In early trading on Tuesday, however, shares had reversed and mining stocks had dropped following some disappointing economic data out of China.
The FTSE 1000 was up 2% overall last week, closing above the 7,500 level.
On Friday, the blue-chip index gained 0.5%. Merlin Entertainments led the risers, up 5.7% after reporting a strong Legoland performance in the first half of the year.
Hospital operator Mediclinic International was also up 4.1% on a broker upgrade.
But housebuilders fell after the government confirmed it is reviewing the future of its Help to Buy scheme though it played down reports the subsidy could be scrapped before 2021.
Barratt Developments was down 4.7%, Persimmon lost 4% and Taylor Wimpey was off 3.7%.
A weaker pound powered a 0.9% gain for the FTSE 100 on Thursday. Next led the blue-chip risers, up 9.7% after better-than-expected half-year results.
And British American Tobacco was up 3.1% as brokers said that concerns about US regulation of nicotine levels have been excessive.
But medical device maker ConvaTec dropped 6.4% after its interim results missed forecasts.
The FTSE 100 was off on Wednesday, pulled down by mining stocks after Rio Tinto announced worsethan-expected profits. Rio’s shares were down 2.8%.
Standard Chartered also dropped by more than 6% after announcing it would not be restarting dividends despite an 82% rise in first-half profits.
Rolls-Royce led the gainers last Tuesday, up 10.2% on better-thanexpected interim results.
Intertek, the testing and inspection specialist,also climbed 9.1% to a record high on strong half-year results. The FTSE 100 added 0.7%.
But mid-cap AA dropped 14% after news that Bob Mackenzie, the breakdown insurance group’s executive chairman, had been fired.