London pre-open: Stocks seen up as investors mull inflation data
Sharecast
Published Oct 18, 2023 08:30
London pre-open: Stocks seen up as investors mull inflation data
Sharecast - The FTSE 100 was called to open 10 points higher at 7,685.
Data released earlier by the Office for National Statistics showed that consumer price inflation remained at 6.7% in September, versus consensus expectations for it to ease to 6.6%.
Core CPI - which strips out energy, food, alcohol and tobacco - rose 6.1% in the 12 months to September. This was down from 6.2% a month earlier.
ONS chief economist Grant Fitzner said: "After last month's fall, annual inflation was unchanged in September.
"Food and non-alcoholic drinks prices eased again across a range of items with the cost of household appliances and air fares also falling this month.
"These were offset by rising prices for motor fuels and the cost of hotel stays."
Jake Finney, economist at PwC, said: "These latest inflation numbers are marginally higher than expected. However, crucially they remain materially below the Bank’s expectations in August. For this reason, it still seems likely that the Bank’s near-term projections will be downgraded in November, which should be enough to keep rates on hold again."
In corporate news, housebuilder Barratt Developments (LON:BDEV) said it remains on track to hit targeted home completions despite a much slower start to the financial year as a result of ongoing challenges prospective buyers are finding in securing mortgages.
Chief executive David Thomas said the trading environment since 1 July "remains difficult", as the company reported falls in private reservations and forward sales.
The declines reflected the impact of higher borrowing costs and the absence of the Help to Buy scheme, which accounted for 12% of private preservations in the first quarter of last year.
Property group Segro reported positive trading for the year to date, anticipating robust rent roll growth driven by active asset management and strong demand for properties.
The firm also said it had made significant progress in asset disposals, exceeding £250m, as it focused on profitable development projects with a potential rent of £77m, expected to yield 7.3% on cost.
Premier Inn owner Whitbread (LON:WTB) posted a mixed set of half-year results, but unveiled an additional £300m share buyback programme.
Statutory revenues grew by 17% to £1.57bn. Profit before tax, on that same basis, was up by 29% on a year earlier to £395m, for basic earnings per share of 147.6p. The consensus for the company's revenues had been £1.59bn, according to FactSet.
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Net cash at period end reduced from £182m to £67m. The interim dividend was raised by 40% to 34.1p per share. Management also sounded a confident note on the full-year outlook, saying that leisure and business demand remained "strong".
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