Britain’s top share index steadied near a record high on Wednesday as upbeat corporate earnings from wealth manager St James’s Place, among others, were offset by a slump in engineer Weir Group.

St James’s Place rose 4.8 per cent, the top gainer in the blue-chip FTSE 100 index, after posting forecast-beating full-year cash profits, boosted by a rise in assets, underpinning a surprise increase in the firm’s final dividend.

In contrast, Weir Group, which makes valves and pumps for the energy and mining industries, fell 8.8 per cent after saying it expected a significant reduction in revenue on a constant currency basis, as well as lower operating margins in 2015.

“Weir is suffering from low oil prices and cutbacks in spending. But it’s a quality, long-term company and might start looking interesting again if its shares drop another 5-6 per cent,’’ John Smith, senior fund manager at Brown Shipley, said.

“People are being forced into stocks because cash and bonds are unattractive and equities are the best choice in the long-term. However, investors will stay nervous in the near term due to concerns of a US rate hike and uncertainty related to the outcome of the UK general election due later this year.’’

The blue-chip FTSE 100 index was flat at 6,952.23 points by 0900 GMT after setting a new record high of 6,958.89 points on Tuesday. That surpassed its previous high of 6,950.60 set on December 30, 1999.

Among other top movers, mid-cap AO World slumped 30 per cent after the British online domestic appliances retailer cut its full-year earnings outlook as the hype around the company's flotation faded.

Whitbread rose 2.9 per cent after saying it expected to post full-year profit toward the top end of market forecasts, as strong demand at its Premier Inn hotels and Costa Coffee chain helped deliver a 5.8 per cent rise in fourth-quarter underlying sales.

“Despite tough comparatives, Whitbread continues to defy economic gravity driven largely by the ongoing growth at Premier Inns and Costa in particular,’’ Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said.

“Even so, investors will have few complaints on a growth stock where the share price has risen 22 per cent over the last year. Despite this rapid appreciation, the market remains committed to the story with the consensus still coming in as a comfortable buy.’’

More Like This

Published on February 25, 2015