The FTSE 100 increased 0.2% to 7,291.1 in early afternoon trading on Monday after a weak start, as optimism in the US markets counterbalanced overnight losses in Asian markets.
The drop in the markets dragged down Asia-focused shares on the FTSE 100, with insurance company Prudential dropping 1.2% to 990.3p and Scottish Mortgage Investment Trust falling 2% to 814.5p as its portfolio holdings including Tencent and Alibaba took a hit.
The Hang Seng fell 0.2% to 20,562.9 and the Shanghai SSE dipped 0.6% to 3,250.3.
“There was a definite summer holiday lull feel to Monday morning trading … following overnight losses in Asia,” said AJ Bell investment director Russ Mould.
US markets gain
Meanwhile, US markets gained ahead of the Federal Reserve’s interest rate decision this week, with the Dow Jones rising 0.4% to 32,014, the S&P 500 gaining 0.4% to 3,981.2 and the NASDAQ increasing 0.4% to 12,476.2 in pre-open trading.
The Fed is currently expected to raise interest rates 0.75% to a range between 2.25% to 2.5%, following the recent spike in US inflation to a record level of 9.4%.
“In macro-economic terms, all the big action comes mid-week as the Federal Reserve serves up its latest decision on interest rates and, a day later, we get the first estimate of US GDP for the second quarter,” said Mould.
Vodafone Q1 delivers mixed bag
Vodafone shares were flat at 129p after the company reported a mixed bag of results for Q1 2023, with its positive news of a 2.5% service revenue growth dented by a 0.5% revenue fall in Germany, the firm’s biggest market.
The telecommunications giant announced it was currently on track to deliver an EBITDaL between €15-€15.5 billion, in line with management guidance.
“We have executed in line with our expectations, delivered another quarter of growth in both Europe and Africa, and seen an acceleration in business growth,” said Vodafone CEO Nick Read.
“Whilst we are not immune to the current macroeconomic challenges, we’re on track to deliver financial results for the year in line with our guidance.
Airtel Africa expands Kenyan 4G capacity
Airtel Africa was among the highest risers on the market today, with a 2.2% increase to 168.4p following the acquisition of 60 MHz of additional spectrum in Kenya by its Airtel Kenya Networks subsidiary for $40 million.
The company said the additional spectrum was in the 2,600 MHz band, and was purchased from the Communications Authority of Kenya. The country is one of the group’s largest markets by revenue.
Airtel Africa confirmed the spectrum licence would be valid from July this year for the next 15 years.
“This additional spectrum will support our 4G network capacity expansion in the market for both mobile data and fixed wireless home broadband capability, and will allow for future 5G rollout, providing significant capacity to accommodate our continued strong data growth in the country,” said Airtel Africa in a statement.
