The FTSE 100 rose on Thursday with earnings once again in focus as Diageo, Admiral and Persimmon all gave investors something to be cheerful about.
London’s leading index was 0.3% higher at the time of writing, with the UK dodging the tech-related softness overnight in the US and Asia.
“The FTSE 100 ticked higher on Thursday, despite selling on Wall Street and in Asia, as its lack of technology exposure proved to be a boon,” says AJ Bell investment director Russ Mould.
“Continuing concerns about whether the AI story is running out of legs had an impact on the big US tech names and their Asian suppliers, though continuing hopes for a breakthrough in the Middle East helped to keep a lid on oil prices for the time being as they remained below $80 per barrel.”
Diageo was the FTSE 100’s top riser, rocketing an eye-catching 8% higher on the back of an ambitious turnaround plan set out by the recently appointed CEO. First-half results weren’t anything to write home about, but investors were pleased to see a plan to put the company back on track, despite sales continuing to decline.
“The World Cup gave Diageo a short-term lift, with Q3 helped by trade buying ahead of the tournament. But in a world of health-conscious and cash-strapped consumers, can Diageo’s brands still earn their spot in the drinks cabinets or makeshift bars in homes across the world?,” said Alex Pugh, Analystat Freetrade.
“This is exactly the sort of job ‘Drastic Dave’ Lewis was hired for. To sharpen the offer in North America, protect the premium brands, and prove Diageo can still grow in a world where drinkers are harder to impress.”
Admiral was among the FTSE 100’s top risers after reporting a solid set of first-half results and saying it expected a better second half. Shares were 5.9% higher at the time of writing.
Matt Britzman, senior equity analyst, Hargreaves Lansdown, said “The headline profit decline only tells half the story. Yes, Admiral is feeling the impact of last year’s softer motor pricing, but under the hood, it’s navigating the turn in the cycle well.”
“Margins weakened as expected, yet claims inflation and frequency remained stable, while favourable development on older claims helped overall insurance margins land better than expected. More importantly, Admiral moved ahead of the market with high-single-digit price increases during the first half. Those increases should earn through over the coming periods, supporting management’s expectation of a stronger second half and suggesting the toughest part of the pricing cycle may now be passing.”
Persimmon’s completions came in at the top end of expectations despite a challenging backdrop, and shares rose 3% towards the highest level since April.
Tritax Big Box was the FTSE 100’s top faller after raising £350m at a 4.5% discount to yesterday’s closing price.