August 18, 2022

Shares in Rio Tinto had been dragged decrease because it signalled the tip of the period of report returns for the mining sector. 

It fell 0.7pc, or 35.5p, to 4788p after it reported a half-year revenue of £7.4bn, down from £10.2bn the yr earlier than, and a 10pc slide in revenues to £24.7bn. 

In consequence, Rio slashed its dividend for the interval to £3.6bn, lower than half of the £7.5bn payout from a yr in the past. It was nonetheless the second-highest half-year dividend for the agency on report, nevertheless. 

Shares in Rio Tinto had been dragged decrease because it signalled the tip of the period of report returns for the mining sector

The outcomes got here as falling commodity costs, together with for iron ore, pile stress on the sector. Strict Covid restrictions in China, one of many world’s largest importers of uncooked supplies, have hit demand and fuelled fears over the well being of the worldwide financial system. 

Rio can be grappling with labour shortages and better prices brought on by the surging value of power weighing on its revenue margins. Analysts at Liberum struck a downbeat tone for its outlook, saying they didn’t anticipate ‘any sustainable recoveries’ in iron ore costs within the quick time period because of difficulties within the Chinese language property sector and an growing provide within the second half of the yr. 

However regardless of Rio’s bleak figures, shares in different blue-chip miners posted good points. Glencore was up 1.9pc, or 8.2p, at 447p whereas Anglo American ticked up 0.9pc, or 24p, to 2775p. One outlier was copper miner Antofagasta, which fell 0.1pc, or 0.5p, to 1079p. The FTSE 100 was up 0.6pc, or 41.95 factors, at 7348.23 whereas the FTSE 250 gained 0.4pc, or 70.30 factors, to 19,639.09. 

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Market sentiment was boosted by upbeat figures from Lloyds (up 4.1pc, or 1.79p, at 45.32p). The numbers from the excessive avenue financial institution helped to elevate NatWest 1.8pc, or 4.1p, to 233.5p and Barclays 0.5pc, or 0.78p, to 157.66p. Commonplace Chartered added 1.3pc, or 7.6p, to 587p and HSBC fell 0.1pc, or 0.3p, to 524p. 

The numbers from the high street bank helped to lift NatWest 1.8pc, or 4.1p, to 233.5p and Barclays 0.5pc, or 0.78p, to 157.66p

The numbers from the excessive avenue financial institution helped to elevate NatWest 1.8pc, or 4.1p, to 233.5p and Barclays 0.5pc, or 0.78p, to 157.66p

Amongst these main the bluechip index increased was packaging agency Smurfit Kappa, which jumped 5.5pc, or 148p, to 2850p after posting a surge in half-year earnings to £648m for the six months to the tip of June, 86pc increased yr on yr because it cashed in on the increase in demand for packaging. 

STOCK WATCH: PARSLEY BOX

Shares in troubled Parsley Field sank to contemporary lows as demand plunged. The meal supply firm, which has seen its share value plunge 94pc since its debut on AIM final March, stated first-half revenues dropped to £9.6m from £14m in the identical interval final yr as order numbers fell to 212,000 from 385,000. 

In consequence, the group expects to report full-year revenues of £19m, down from £21m final yr, alongside a lack of £4.1m. The shares tumbled 34.3pc, or 6p, to 11.5p.

The sturdy outcomes despatched shares in rival packaging group Mondi up 4.7pc, or 66.5p, to 1483p whereas fellow peer DS Smith additionally rose 4pc, or 10.7p, to 276.9p. Fortunate Strike and Pall Mall cigarette producer BAT dipped 0.6pc, or 22p, to 3449p after saying its exit from Russia value it £957m. That meant revenue for the primary half of 2022 fell 25pc to £3.7bn regardless of a 5.7pc rise in gross sales to £12.9bn. 

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Price range airline Wizz Air bounced 10.4pc, or 204p, to 2169p as its boss Jozsef Varadi predicted a ‘materials working revenue’ in its second quarter regardless of chaos at airports throughout Europe. The upbeat outlook helped offset a tough first quarter by which losses ballooned to £240m within the three months to June 30 from a £91m loss the yr earlier than. 

Rival airways had been additionally on the march, with British Airways proprietor IAG up 5.2pc, or 5.9p, to 119.06p, whereas easyJet gained 4.7pc, or 17.4p, to 390.7p. Mexican gold and silver miner Fresnillo added 1.7pc, or 10.8p, to 655.4p after a 4.7pc rise in manufacturing to 1.2m tonnes of ore within the first half of the yr regardless of what boss Octavio Alvidrez stated had been the continued results of Covid and ‘provide chain bottlenecks’. 

Pub group Marston’s was up 3.6pc, or 1.68p, at 48.68p after gross sales within the 42 weeks to July 23 had been simply 2pc under pre-pandemic ranges. And space-focused funding agency Seraphim gained 9.6pc, or 6.85p, to 78.6p, after it reported exercise within the house sector ‘remained sturdy’ within the yr to the tip of June.