(Alliance News) - Stock prices in London opened higher on Thursday ahead of closely watched US retail sales figures in the afternoon, while Deliveroo fell further after giving its first trading update as a London-listed company.
The FTSE 100 index was up 24.18 points, or 0.4%, at 6,963.76. The mid-cap FTSE 250 was up 86.96 points, or 0.4%, at 22,442.41. The AIM All-Share index was up 0.1% at 1,244.65.
The Cboe UK 100 index was up 0.3% at 693.40. The Cboe 250 was up 0.4% at 20,054.30. The Cboe Small Companies was up 0.4% at 14,408.75.
In mainland Europe, the CAC 40 index in Paris and the DAX 30 in Frankfurt were up 0.3% and 0.2% respectively.
In the FTSE 100, Whitbread was the best performer, up 2.8%, after Societe Generale upgraded the Premier Inn owner to Neutral from Sell.
Kingfisher was just behind, up 2.2%, after Citigroup raised the DIY retailer to Neutral from Sell.
Entain was up 1.8%. The gambling firm said it delivered a strong first-quarter performance, continuing the momentum seen at the end of 2020 and in line with expectations.
For the quarter ended March 31, online net gaming revenue rose 33% to mark Entain's 21st consecutive quarter of double-digit Online NGR growth.
However, Retail NGR fell 99% during the three months, as betting shops were closed due to lockdown restrictions. Entain owns the Ladbrokes and Coral high-street chains in the UK. Total group NGR was down 13%. As part of the UK government's roadmap out of lockdown, non-essential retail stores - including betting shops - were permitted to reopen at the start of the week.
At the other end of the large-caps, Legal & General and St James's Place were the worst performers, down 4.2% and 2.5% respectively. The stocks went ex-dividend meaning new buyers no longer qualify for the latest payout.
In the FTSE 250, Travis Perkins was the best performer, up 2.8% after the builders' merchant said it made an encouraging start to the year and the demerger of its Wickes DIY business was on track.
For the first-quarter to the end of March, like-for-like sales growth - excluding Wickes - was 17% year-on-year. At Wickes, like-for-like sales growth was 20%.
Travis Perkins said the Wickes demerger is due to complete with trading in Wickes shares commencing on April 28. Travis Perkins share consolidation to be effective following market close on April 28, and trading in new Travis Perkins shares commencing on April 29.
"The decision to list Wickes as a separate business will see the group become leaner and allow it to refocus on its strengths, which is providing services and materials to trade customers," said eToro analyst Adam Vettese.
At the other end of the midcaps, Jupiter Fund Management was the worst performer, down 3.3%, after going ex-dividend.
Elsewhere, Deliveroo was 2.2% lower at 264.42 pence. The food delivery platform maintained its full-year guidance after a sharp acceleration in orders in the first quarter, cautiously eyeing a relaxation of lockdown rules ahead. The stock is down 32% from its IPO price of 390p.
In its first trading update as a listed company, Deliveroo said it made "significant progress" in the first quarter ended March 31, with total orders more than doubling to 71 million from 33 million. Gross transaction value also shot up in the first quarter, at GBP1.65 billion versus just GBP715 million a year ago. Gross transaction value per order rose 8% to GBP23.2 from GBP21.5.
Looking ahead, Deliveroo said it mindful of the uncertainty of the lifting of Covid-19 restrictions on the hospitality sector, as online ordering platforms have excelled during lockdown conditions over the past year.
Deliveroo expects the rate of growth to decelerate as lockdowns ease, but the extent of the deceleration remains "uncertain".
"It is unclear just how severe the drop-off in demand will be when things go back to 'normal'. Much like the working from home versus office debate, only time will tell to what extent regularly ordering from Deliveroo (and, indeed, its rivals) has become a more deeply entrenched part of British food culture," commented Spreadex analyst Connor Campbell.
THG was down 2.6%. The beauty and nutrition products retailer reported "strong" revenue growth throughout 2020, making it a "monumental" first year as a public company.
The Manchester-based firm, which owns online retailing platform the Hut Group, said 2020 revenue reached GBP1.61 billion, up 42% from GBP1.14 billion in 2019.
However, THG's 2020 pretax loss widened to GBP534.6 million from GBP45.2 million in 2019, and it incurred an operating loss of GBP481.8 million, widening from GBP11,790.
THG said this was partially driven by events that resulted in cash outflows and non-cash charges. It explained that the largest charge was related to the vesting of share option schemes after the strong share price growth experienced after stock-market admission in London.
THG said its recently upgraded 2021 revenue growth guidance of 30% to 35% remains unchanged, with stable adjusted earnings before interest, tax, depreciation and amortisation margins.
The Japanese Nikkei 225 index ended up 0.1%. In China, the Shanghai Composite closed down 0.5%, while the Hang Seng index in Hong Kong was down 0.9%. The S&P/ASX 200 in Sydney ended up 0.6%.
The pound was quoted at USD1.3776 early Thursday, down from USD1.3793 at the London equities close on Wednesday.
The euro was priced at USD1.1973, flat from USD1.1975. Against the Japanese yen, the dollar was quoted at JPY108.88, down from JPY108.96.
Brent oil was trading at USD66.73 a barrel Thursday morning, higher than USD66.32 late Wednesday. Gold was trading at USD1,740.65 an ounce, up from USD1,736.27.
Thursday's economic calendar has the latest US jobless claims reading and US retail sales data at 1330 BST.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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