Financial firms are in the spotlight as leading shares continued their recent positive run.
But it is a tale of two insurers, with Standard Life among the biggest risers but Legal and General leading the losers after their latest updates.
Standard Life is up 13.7p at 332.2p as it reported better than expected profits and assets under management despite market volatility, especially around the UK referendum.
In a buy note Barrie Cornes at Panmure Gordon said:
First half 2016 pre-tax IFRS operating profit from continuing operations at £341m (+18%) was ahead with our forecast of £315m and consensus at £314m. The beat was driven largely by a £22m one off impact linked to the introduction of Solvency II and the Scheme of Demutualisation. Despite this, the figures were still good. Within this the UK pensions and savings business contributed £151m (+7%) which compared to our forecast of £140m and Standard Life Investments £176m (+14%) compared to our £179m forecast.
Group assets under administration at 30 June was well ahead of expectations at £328bn (31 Dec 2015: £307.4bn) compared to our £320m forecast reflecting market movements towards the period end and positive foreign exchange post Brexit. The shares are trading on 2016/17 forecast PE multiples of 11.7 times and 10.8x times respectively together with a 2016 forecast dividend yield of 6.2% which view as a buying opportunity.
But Legal and General has fallen 10.6p to 207.5p after lower profits at its investment management and general insurance business outweighed a higher than forecast 10% rise in first half profits to £822m.
Overall the FTSE 100 has added 22.45 points to 6831.58 despite worse than expected UK trade figures.
Among the other risers, Worldpay is up 12.8p at 314.2p after the payments processor reported higher than expected underlying earnings and said it would pay a higher than forecast maiden dividend of 0.65p a share.
Oilfield services group Amec Foster Wheeler has added 49.6p at 516p following a positive update, while Ocado is up 15.4p at 291.7p after it agreed improved terms with partner Morrisons, up 4.3p at 192.3p. Long term bear of Ocado Shore Capital has moved from sell to hold on the news:
Whilst Ocado has given up pre-ordained fees and margin, the group has potentially secured better long-term cash flows and created a credible basis, perhaps, to engage with the long list of international partners that [chief executive Tim] Steiner has reportedly said are patiently queueing around Hatfield awaiting Ocado’s blessing to work with them.
