FTSE-100 Hesitant Amidst Corporates Warning Of Rising Costs

The FTSE-100 benchmark of the London Stock Exchange operated within a tight band of around 40 points. Earnings updates did not translate to investor appetite as forward guidance on rising costs eclipsed the enthusiasm of strong first quarter performance. The surge in mining stocks and hopes of a policy support in China capped losses.

FTSE 100 oscillated between 7,509.19 and 7,551.55, versus the previous close of 7,509.19.

The benchmark index of the London Stock Exchange is currently trading at 7,512.60, up 0.05 percent on an overnight basis.

In the 100-scrip index, about a quarter are still trailing Thursday’s levels.

Industrial software maker Aveva Group is the top gainer with a 4.8 percent surge.

Paper products company Mondi and packaging business Smurfit Kappa Group have both added more than 3.5 percent. Smurfit Kappa had earlier reported a more than 30 percent jump in revenues in the first quarter.

Smith (DS), Pearson, Sainsbury, Anglo American, Endeavour Mining, Land Securities Group, British Land Co, Glencore, Dechra Pharmaceuticals and Ocado Group, have all gained more than 2 percent.

Consumer Goods business Reckitt Benckiser is trading marginally higher, after reporting a 2.3 percent revenue drop in the first quarter and warning of supply chain costs.

Hikma Pharmaceuticals is down 5.67 percent.

State-backed Natwest Group that reported a 41 percent increase in first quarter profit, is trading 4 percent lower following its warning of a looming cost of living crisis.

Vodafone Group is down 3.7 percent.

Astra Zeneca that reported first quarter sales that surpassed expectations is trading 0.6 percent lower.

Lloyds Banking group is the most active scrip with a turnover of 61 million. The scrip has shed more than a 1.9 percent.

The GBPUSD pair surged 0.94 percent to 1.2573 amidst the Dollar Index retreating to 103.00 from the previous close of 103.67.

Yields on U.K.’s ten-year bonds increased to 1.8800 percent from Thursday close of 1.8760.