By Chris Dorrell
London’s FTSE 100 index started the day flat as Primark’s owner and Watches of Switzerland made the biggest gains following strong growth.
The capital’s premier bluechip index was 0.06 per cent up after the open at 7,413.60, while the more domestically-focused FTSE 250 index rose 0.22 per cent, to 17,786.23, as it continued to perform well.
The biggest riser on the top index was Primark owner Associated British Foods, which reported revenues up by almost £20bn, and soaring sales. Its shares rose by around six per cent after the open, as investors were buoyed by its pre-Christmas rally.
Meanwhile, insurer Watches of Switzerland, which is listed on the 250, saw its shares rise more than 12 per cent, after reporting its revenue up to £379m, from £374m.
The next two months is an important time for brands such as Watches of Switzerland, as Brits make Christmas purchases, often spending on big-items.
The Primark owner has continued to rack in hefty profits despite the cost of living crisis, with group revenue for the full year rising 16 per cent to £19.7bn.
The owner of the budget fashion brand said that revenues at its retail arm rose 17 per cent to £9bn as customers flocked to high street stores to seek out affordable clothing.
“One of ABF’s key strengths is its diversified portfolio of businesses, which includes many well-known food brands such as Kingsmill, Ryvita and Patak’s,” Aarin Chiekrie, equity analyst at Hargreaves Lansdown said.
“This diversification helps to spread out risk, ensuring the company isn’t overly reliant on any one product or division.”
Meanwhile, China’s October exports dropped by 6.4 per cent year-on-year, while imports unexpectedly rose by 3.0%. This mixed data underscores the uneven nature of the recovery in the world’s economic behemoth.
On the FTSE 250, shares in Persimmon said that it expects market conditions to remain “highly uncertain” into 2024 due to the impact of higher interest rates.
The company reported new home completions were down 37 per cent year on year at 1,439 in the quarter to November 6 and said it was seeing prices for forward orders of new homes for private sale fall two per cent to around £277,750.
The update comes as new figures pointed to a surprise increase in house prices in October, breaking a run of six consecutive falls.
According to Halifax, the typical UK home now costs £281k, up around £3,000 on the previous month.
Meanwhile, grocery price inflation has fallen to single digits for the first time in 16 months, figures show.
It is the eighth consecutive decline in the rate of price rises since the figure peaked at 17.5 per cent in March, and the first time the figure has fallen below 10 per cent since July last year.
