- Markets recover after sell-off
- Putin orders troops back to bases
- Ashtead, Glencore Xstrata impress with results
- Fresnillo disappoints as profits slump
techMARK 2,891.69 +1.38%
FTSE 100 6,775.50 +1.00%
FTSE 250 16,559.83 +1.13%
UK stocks bounced strongly on Tuesday morning as sentiment recovered after tensions between Ukraine and Russia dragged markets to a two-week low.
"With no new headlines breaking on the geopolitical situation, it looks like investors are taking this opportunity to claw back the sleep losses of yesterday's session," said Financial Sales Trader Sam Fox from Spreadex.
London's FTSE 100 benchmark index was trading 1% higher at 6,775.5 in morning trade. The Footsie fell 1.5% to 6,708.35 on Monday, finishing at its lowest closing price since February 14th.
Russian President Vladimir Putin this morning ordered forces "involved in military exercises" to return to their bases, following the backlash from international leaders after Russia's increased military presence near the border of Ukraine.
However, Russia continues to have around 16,000 troops still deployed in the Crimea region in the aftermath of deadly protests last month and the ousting of pro-Russian Ukrainian President Viktor Yanukovych, who has since fled to Russia.
The intervention had been condemned by the G7 who labelled it as a "violation of Ukraine's sovereignty", prompting calls for potential trade sanctions and visa restrictions against Russia in retaliation.
Ashtead, Glencore Xstrata provide a lift
Equipment rental business Ashtead surged after reporting a bumper set of third-quarter earnings, driven by a strong performance from its two main divisions. The group now expects full-year results to come in ahead of previous expectations.
Mining group and trading house Glencore Xstrata also rose after beating forecasts comfortably with its 2013 results. Adjusted operating profits were more or less flat at $13.1bn but well ahead of the $12.3bn expected by analysts.
Leading the downside was precious metal producer Fresnillo which slumped after it reported a 64% drop in 2013 profits, reflecting a decline in gold production and a fall in precious metal prices.
The stock, along with sector peer Randgold, was also pulling back after a strong performance on Monday as a reduction in risk appetite pushed investors towards safe-haven assets such as gold and silver.
Markets were largely shrugging off a statement from Randgold chief Mark Bristow who said the opportunities for gold mining in Africa more than outweigh the challenges currently facing the industry.
Oil major BP was subdued after a US court rejected calls to prevent certain compensation payments related the Deepwater Horizon oil spill. BP released a statement yesterday saying it disagrees with the decision.
Postal group Royal Mail was lower after Credit Suisse initiated coverage of the stock with an 'underperform' rating, saying that the valuation is "stretched" after recent share-price strength.
FTSE 100 - Risers
Ashtead Group (AHT) 910.00p +7.56%
Rexam (REX) 500.50p +2.69%
Meggitt (MGGT) 508.00p +2.65%
Shire Plc (SHP) 3,380.00p +2.52%
Coca-Cola HBC AG (CDI) (CCH) 1,476.00p +2.36%
Glencore Xstrata (GLEN) 333.85p +2.33%
Schroders (SDR) 2,645.00p +2.16%
Intertek Group (ITRK) 3,031.00p +2.05%
Smiths Group (SMIN) 1,370.00p +2.01%
Prudential (PRU) 1,367.00p +2.01%
FTSE 100 - Fallers
Fresnillo (FRES) 892.50p -7.99%
Randgold Resources Ltd. (RRS) 4,902.00p -1.03%
Royal Mail (RMG) 591.00p -0.51%
BP (BP.) 491.00p -0.39%
Mondi (MNDI) 1,073.00p -0.09%
FTSE 250 - Risers
Perform Group (PER) 250.00p +7.53%
IP Group (IPO) 220.00p +6.74%
CSR (CSR) 799.50p +6.67%
Bank of Georgia Holdings (BGEO) 2,180.00p +6.34%
Pace (PIC) 427.30p +5.87%
Evraz (EVR) 64.70p +5.81%
Moneysupermarket.com Group (MONY) 189.10p +5.06%
Alent (ALNT) 320.90p +5.01%
Redrow (RDW) 332.20p +3.52%
PayPoint (PAY) 1,154.00p +3.50%
FTSE 250 - Fallers
Devro (DVO) 282.00p -7.54%
African Barrick Gold (ABG) 288.20p -2.40%
Regus (RGU) 225.30p -2.09%
Tullett Prebon (TLPR) 325.00p -0.76%
F&C Commercial Property Trust Ltd. (FCPT) 118.80p -0.75%
Daejan Holdings (DJAN) 4,980.00p -0.70%
ITE Group (ITE) 243.20p -0.65%
Grafton Group Units (GFTU) 661.50p -0.53%
NMC Health (NMC) 476.00p -0.52%
UK Commercial Property Trust (UKCM) 78.90p -0.25%