The FTSE 100 was up 0.4% to 7,518.2 in early afternoon trading on Wednesday, following jumps in mining, utilities and telecoms, with analysts pointing out the high dividend payments coaxing investors out of the woodwork.
“The FTSE 100 advanced…led by utilities, telecoms and mining stocks – all generous dividend payers, suggesting that people are continuing to rediscover their love of income investments,” said AJ Bell investment director Russ Mould.
Airtel Africa shares increased 2.7% to 156.8p, with Vodafone shares climbing 1.9% to 131.3p and commodities firms Rio Tinto and Anglo American rising 1.5% to 5,624p and 1.4% to 3,675p, respectively.
Meanwhile, tech stocks battered the US markets, as Snapchat shares fell 43% by close of trading on Tuesday, with the NYSE down 0.3% to 15,290.3 and the NASDAQ sliding 2.3% to 11,264.4.
SSE shares gained 5% to 1,855p after the utilities company reported a 42% climb in revenue to £16.9 billion in its FY 2022 results compared to £11.8 billion in FY 2021, with a 15% increase in operating profit to £1.5 billion.
The firm announced a dividend payout growth of 5.8% to 85.7p against 81p the last year.
Glencore shares rose 0.2% to 520.4p following a remarkable $1.5 billion fine levelled against the mining company for corruption and bribery charges related to its oil operations across several African countries.
The group indicated that it would plead guilty to all charges, and is set to pay $700 million for US bribery investigations, $485 million for market manipulation investigations and $39.5 million to the Brazilian Federal Prosecutor’s Office, with an additional amount to be paid to the UK.
“We acknowledge the misconduct identified in these investigations and have cooperated with the authorities,” said Glencore CEO Gary Nagle.
“This type of behaviour has no place in Glencore, and the Board, management team and I are very clear about the culture that we want and our commitment to be a responsible and ethical operator wherever we work.”
Prudential shares declined 2.1% to 986.6p on the reported hire of Manulife Financial executive Anil Wadhwani as its new CEO, who is set to take up the position in following the retirement of Mike Wells earlier this year.
Ocado shares tumbled 5.3% to 723.9p, after the retailer halved its growth guidance in light of the UK cost of living crisis, with management expecting “low single digit” annual sales growth.
The struggling company was already failing to keep up with a post-Covid-19 rate of online consumer shopping, and the stock had been circling the drain for some time as lockdown restrictions lifted. Ocado shares have fallen 56.7% year-to-date.
