Tuesday’s Master Investor Market Report

– The FTSE 100 closed the day at 6,539.68, a decrease of 10.62 points.
– The FTSE 250 rose by 15.01 points to finish at 17,623.9.
– The FTSE All Share dropped by 4.15 points to 3,576.32.
– The FTSE AIM All Share finished at 751.13, an increase of 0.3 points.

UK CPI Inflation rose to 0.1% in July on a year-on-year basis as the decline in food and clothing prices slowed down. Core inflation reached a five month high, which could influence policymakers at the Bank of England who have concerns that falling commodity prices and the strength of sterling are suppressing top line changes in the price level.

Meanwhile, there has been fresh trouble in China as the Shanghai Composite fell by more than 6% today. Analysts continue to expect further devaluations and fear that growth will be below forecast levels.

Shares in baggage handler John Menzies (MNZS) dropped by 3.86% to 473.5p after the firm announced a massive 60% fall in profits before tax during the first half of 2015 due to restructuring costs and the loss of contracts. Despite this, Numis upgraded the stock to a “buy” with a target price of 600p and said that underlying performance was ahead of expectations. Meanwhile, N+1 Singer stuck with a “hold” and said that the firm would need to show strong progress in the second half.

Medical device manufacturer Akers Bioscience (AKR) has reported a $3.41 million (£2.17 million) pre-tax loss for the six months to 30th June, a far wider deficit than in the comparable period of last year. Total revenues fell by 42% due to a large order from 2014 not being repeated. Sales of its BreathScan products were also adversely impacted by a change in French driving regulations. Akers shares fell by 18.45% to 210p.

Construction outfit Persimmon (PSN) posted pre-tax profits of £272.8 million during the six months ended 30th June, a 31% increase over the comparable period of 2014. Revenues were up by 11% at £1.33 billion as the firm completed the sale of 6,855 units. However, Numis cut its view on the company to a “hold” as it felt that there was superior value elsewhere in the market. Persimmon shares declined by 37p to 2,084p.

Drug researcher Cyprotex (CRX) saw its shares shoot up by 11.11% to 60p after it narrowed its first half loss before tax to £428,337. Revenues rose by 28% to £6.93 million on the back of demand for the company’s drug level and toxicity testing services. At the close of the period, the company retained cash of £4.13 million.

Tomorrow’s news today

Admiral Group (ADM), Glencore (GLEN), Hikma Pharmaceuticals (HIK) and Inspired Energy (INSE) will publish interim results tomorrow.

Quote of the day

“The recognition that things that are not sustainable will eventually come to an end does not give us much of a guide to whether the transition will be calm or exciting.”
– Tim Geithner