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UK stocks lower as investors await Fed update on US economy

US economy

Provident Financial rallied 10% to 215.3p, while Polymetal International firmed 0.2% to £19.56

UK stocks opened lower on Wednesday as investors remained wary of climbing Covid-19 cases in Europe and elsewhere, while bracing for a key update on the state of the US economy from the Fed on Thursday.

At 0819, the benchmark FTSE 100 index was down 18.27 points, or 0.3%, at 6,018.74.

Subprime lender Provident Financial rallied 10% to 215.3p despite swinging to a first-half loss and scrapping its interim dividend, as its revenue fell and impairment charges grew amid the Covid-19 pandemic.

Provident, however, said it had nevertheless performed better than expected and had repaid furlough support to the UK government.

Mining company Polymetal International firmed 0.2% to £19.56, having hiked its dividend after its first-half earnings more than doubled on the back of higher gold and silver prices.

Polymetal declared a dividend for the six months through July of 40c per share, up from 20c on-year.

Smaller rival Hummingbird Resources jumped 5.0% to 35.7p as it swung to a first-half profit, also on the back of rising gold prices.

Cruise operator Carnival rose 1.9% to 992p, even as it cancelled yet more services, this time at its Princess Cruises unit, citing border restrictions and uncertainty over airline travel.

Bus and rail company Go-Ahead advanced 0.7% to 654.78p after it won a two-year contract extension to continue operating around 450 buses in the Loyang region of Singapore.

Argentina-focused oil company President Energy jumped 9.9% to 1.92p on announcing that it had entered into a drilling contract for two new wells scheduled to commence later this year.

President also announced that discussions had recommend with a ‘national oil company’ regarding the potential sale of a stake in President’s Pirity asset in Paraguay.

Tech company Vianet added 1.2% to 92.34p, having announced that trading for the first four months of its financial year had been ahead of revenue and profit forecasts revised due to Covid-19.

Vianet is heavily exposed to a UK pub and restaurant sector that has shown recovery signs since lockdowns were eased.

Kidney disease diagnostics group Renalytix AI added 2.7% to 588p on news that it had filed a submission seeking clearance of its KidneyIntelX product with the US Food and Drug Administration.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Precise Investors. The information provided on Precise Investors is intended for informational purposes only. Precise Investors is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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