FTSE 100 rallies, Cake Box shares higher as price pressures ease
Mining giant BHP’s big dividend cut today ensured China fears stayed close to the surface despite a much improved session for European markets.
The FTSE 100 index added 33.85 points to 7291.67, a welcome upturn after seven straight losses caused by speculation over the peak for global interest rates and a focus on China’s debt-laden property sector.
BHP boss Mike Henry told investors today that commodity demand has remained relatively robust in China and India but that much will depend on the effectiveness of recent policy measures announced by Beijing.
His company reported a 37% fall in profits to $13.4 billion as significantly lower prices in key commodities offset increased copper, iron ore and nickel sales volumes.
BHP announced a dividend of $80 cents a share for payment next month, bringing the total for the year to 170 cents (132.92p). This compares with 325 cents the year before, but is still the third largest in the company’s history.
The Australian miner, which trades through a standard London listing after giving up blue-chip status in 2022, fell 9p to 2193p. This was in contrast to rivals as Glencore shares rallied 6.55p to 426.5p and Anglo American improved 27.8p to 1997.8p.
RS Group led the FTSE 100 index, rising 3% or 26.2p to 726.8p in a fightback for the industrial components supplier following Friday’s three-year low.
Demand has been fuelled by yesterday’s disclosure that chief executive Simon Pryce last week spent £100,000 increasing his stake at a price of 688p.
The shares were above 1,250p in November 2021 but have fallen back due to economic headwinds and destocking by customers in the electronics sector. On the fallers board, BP shares weakened 1.9p to 476.4p and consumer goods firm Unilever dropped 19p to 3950p.
The FTSE 250 index, meanwhile, outpaced its blue-chip counterpart by adding 0.6% or 100.49 points to 17,999.48.
On AIM, Cake Box shareholders at the company’s AGM in London were in celebratory mood after shares jumped 8p to 158p.
This was after the retailer said like-for-like sales rose 6.8% for the 17 weeks to 30 July, while it has also benefited from a fall in fresh cream prices in recent months.
