A turnaround in profit potential for Royal & SunAlliance and Reckitt Benckiser has lifted the FTSE 100 trading this morning.
The FTSE 100 Index is currently up almost 24 points or 0.5% to 4436.8 along with the FTSE All-Share index which has also gained 10.9 points or 0.5% to 2201.9.
Royal & SunAlliance’s profit potential has been in the doldrums for a few years now after management sought to find a buyer for the entire firm. Since restructuring and the sell-off of certain divisions, R&SA has this morning announced first quarter net income of £51m compared with a net loss of £16m this time last year. This has lifted R&SA’s share price 5p or 6.7% to 79p.
Reckitt Benckiser, maker of household cleaners, has also announced first quarter net income is up 28% to £105 – subsequently lifting its share price 29p or 2% to £14.84 pence – thanks to sale of new products.
QXL Ricardo, the internet auctioneer operating in several European countries, also saw its share pride leap 28.75p or 5.5% to 555p after revealing the firm had reduced its fiscal fourth quarter losses from £4.1m to £399,000 through cut costs and new customers.
Continuing prospect of rising oil prices has knocked confidence in the Asian stock markets again, as investors worry it could damage economic growth.
This would affect many of the larger export-led firms such as Canon and Samsung Electronics, along with Singapore Airlines and Cathay Pacific Airways who will have to foot the bill for higher oil charges.
The Japanese Nikkei 225 Stock index closed the day down another 3% to 10,825.10, as Fujitsu fell 5.7% to Yen 714 and Canon dropped 2.6% to Yen 5,560.
The South Korean Kospi index also fell to its lowest level this year and lost 3.3% to 790 points, led by Samsung Electronics and Hyundai Motor Co.
And in the US yesterday, the three main indices closed with mixed trading, as there are still real concerns about oil prices and potential interest rates rises by the Federal Reserve.
The Nasdaq was the only index to close down, having lost 0.3% to 1,925.59, but the S&P 500 didn’t fare much better as it only gained 0.17% to 1,097 and the Dow Jones lifted just 0.26% to 10,045.IFAonline
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