The FTSE opened higher after yesterday's sharp falls despite a third devaluation of the yuan in as many days. Read the Trader's analysis here.
TIP UPDATES:
Trendy office developer Derwent London (DLN) continues to post very strong numbers, with adjusted book value up 10.9 per cent in the first half to 3,226p. That reflected an underlying valuation uplift of 9.1 per cent, driven by strong demand from tenants for space. Buy.
Michael Page (MPI) shares rose 4 per cent in early trading on news of a £50m special dividend following another very strong half for the international recruiter. Gross profit rose 11 per cent at constant currencies on sales up 8 per cent. The reported numbers were hit by the weakness of the euro and emerging-market currencies, however - management said current exchange rates implied a £28m hit to annual gross profit. Buy.
Grainger (GRI) announced an "acceleration" of its strategy to focus on the UK private rented sector in a trading update for the 10 months to end-July. The big news is the sale of its German rental business. UK private rents have been increasing at 6 per cent on average for new lettings and 2.3 per cent for renewals. Buy.
Ophir Energy (OPHR) upgraded its production guidance in half-year results. Having produced 14,600 barrels of oil equivalent a day in the first six months, it expects the annual figure to be 11,000-12,500. The numbers reflect the acquisition of Salamander Energy completed in March. Buy.
Cohort (CHRT) has won a contract with the UK Ministry of Defence worth £11.2m in initial orders, with more likely over the life of the four-year deal. The specialist technology group has worked with a Danish audio specialist to develop "tactical hearing protection systems" for foot soldiers. Buy.
Oil-price hedges continue to protect Ithaca Energy (IAE) from the ravages of the slump. Cashflow from operations totalled $160m, up from $102m last year. Production came in at 12,578 barrels of oil equivalent a day, in line with guidance but up from 10,528 last year. Buy.
Cineworld (CINE) announced first-half revenue growth of 11.3 per cent, stripping out the impact of currency and the Cinema City acquisition in 2014. Both the UK and Eastern European businesses performed well, with ticket prices in the UK and Ireland rising 7.9 per cent due to a higher share of IMAX-friendly blockbusters like Jurassic World and Avengers: The Age of Ultron. Buy.
US networking giant Cisco (NASDAQ:CSCO) posted record full-year sales and underlying profits following fourth-quarter net income of $3bn. New chief executive Chuck Robbins said he was particularly pleased with the growth of deferred revenue, which shows Cisco's transition towards a more predictable software-based model. Buy.
KEY COMPANY STORIES:
TUI (TUI) shares rose 8 per cent on a strong trading update. The owner of Thomson Travel and First Choice reacted swiftly to the terrorist attack on the beach outside one of its hotels in Tunisia, costing it €10m, but underlying trading during the quarter generated €194m in operating profits - €23m more than last year.
Commodities conglomerate Glencore (GLEN) downgraded its capital expenditure target for 2015 in a half-year production update. It now expects to spend no more than $6bn, rather than the $6.5-6.8bn range previously given. It also stole some of the thunder from next week's interim results by announcing a $790m write-down of its recently acquired oil fields in Chad.
OTHER NEWS:
Infinis Energy (INFI) delivered its first operational update since the government moved to close the subsidy regime for onshore wind in last month's budget. Total power generation rose 2 per cent to 586 GWh in the period from 1 Apr, but management reiterated that the subsidy wind-down will reduce cash profits by £7.5m this financial year and £10-11m in 2016-17.
Coca-Cola HBC (CCH), a major bottler of the fizzy drink, posted strong margin gains due to favourable input costs, with comparable operating profits up 31 per cent at €219m. Stripping out the impact of four extra selling days, volumes were up 1.3 per cent, driven by growth in Nigeria, Romania and Ukraine. Developed market volumes were broadly flat. The shares rose 11 per cent in morning trading.
