Britain’s top share index rose to rebound from one-month lows on Wednesday, boosted by appetite for travel and leisure stocks and industrial equipment hire company Ashtead after it lifted its earnings guidance.
Ashtead rose 6.6 per cent, having surged over 10 per cent to an all-time high in early deals, after it raised its full-year earnings guidance following a surge in profit.
“Expectations are now that more earnings upgrades continue to come through, led by the credibility of management to deliver on growth targets and strategy,’’ Atif Latif, director of trading at Guardian Stockbrokers, said.
Britain’s FTSE was up 25.00 points, or 0.4 per cent, at 6,554.47 by 0846 GMT, partially recouping a 2.1 per cent slide in the previous session which took the index to its lowest level since November 6.
The index remains 5 per cent off of its 2014 high set in September.
Travel, leisure index
The FTSE 350 Travel and Leisure index was a top sectoral riser, up 1.4 per cent, led higher by cruise operator Carnival, up 3.2 per cent after Numis lifted its target price on the stock.
British Airways owner IAG and easyJet both rose around 2 per cent, as airlines benefitted again from pressure on oil prices. Brent was near five-year lows and down 40 per cent since June on oversupply worries.
Travel group TUI Travel rose 1.3 per cent after Germany’s TUI AG said its profit target for the year was coming into reach in its final set of results before its merger with the British company.
Aberdeen Asset Management was down 1 per cent in early deals, among the biggest fallers on the FTSE, hit by a downgrade from Citi to “neutral’’ from “buy’’.
“Flow outlook is unclear, and (Emerging Market) performance headwinds look set to worsen,’’ analysts at Citi write in a note.