Monday’s Master Investor Market Report

– The FTSE 100 closed the day at 6,731.84, an increase of 13.35 points.
– The FTSE 250 rose by 91.00 points to finish at 17,746.83.
– The FTSE All Share climbed 9.15 points to 3,671.29.
– The FTSE AIM All Share finished at 752.87, a fall of 0.30 points.

Chinese inflation picked up in July, rising to an annual rate of 1.6% from 1.4% in June, but remains stubbornly below Beijing’s 3% target rate. The rise was primarily driven by increasing food costs, while the growth rate of wholesale and factory prices fell for a fortieth consecutive month.

Insurer Esure (ESUR) posted underlying pre-tax profits of £46.5 million for the first half of the year, down by 21% from last year’s level of £59.1 million despite a significant increase in gross written premiums. Share in the firm dropped sharply to 240p and Accendo Markets suggested that this was “the end result of many a shareholder ‘holding on’ following last year’s forward guidance to see if things might be turned around, only to exit en masse at the prospect of 20% less income from their holdings together with a FY 2015 outlook that had the audacity to assume ‘normal weather’ conditions for the remainder of the year”.

Carillion (CLLN) has won a new facilities management agreement worth up to £4.1 billion which replaces a number of existing frameworks with UK Government bodies and will run through to 2019. Carillion shares rose by 1.7p to 344.7p.

Engineering outfit Meggitt (MGGT) has agreed to purchase of Cobham’s advanced composites arm for a cash consideration of $200 million (£129 million). Management said that the deal complements Meggitt’s existing complex composites division and that it is expected to be immediately earnings enhancing. The purchase is subject to regulatory approval and will most like complete in late 2015. Meggitt shares climbed 6p to 510.5p.

Shares in Fitbug (FITB) plummeted by 25% to 3p after the firm revealed that it had raised £1.67 million through the placing of new shares and the issue of a convertible loan note. It also renegotiated a number of outstanding loans to feature lower interest rates and extended repayment. Management said that the fresh funds would help shore up finances and the firm’s future prospects.

Software and services provider Gresham Computing (GHT) reported an 11% increase in revenues for the half year ended 30th June as sales of the company’s flagship CTC products rose by 247%. Profits before taxation were 8% higher than in the same period of the prior year. N+1 Singer said that the firm was performing as it expected and that it expected market demand to remain strong. The shares ended the day flat at 97p.

Tomorrow’s news today

Johnston Press (JPR), SIG (SHI), SERCO (SRP) and Synthomer (SYNT) are among the firms that will publish interim results tomorrow, while Hargreaves Services (HSP) will release its final results.

Quote of the day

“Great deeds are usually wrought at great risks.”
– Herodotus