UK market update – LSE boosts dividend, Compass upgraded by MS

At 08:30BST, the FTSE 100 is trading lower by 0.1% at 7,110.75. The midcap FTSE 250 is trading lower by 0.4% at 23,419.32.

In FX markets, GBP/USD is trading at 1.3927, EUR/GBP is trading at 0.8491. The US Dollar Index is up 0.1%.

Today’s calendar highlight is the July US Nonfarm Payrolls report. The US is expected to have created 870K jobs during the month but the range of estimates from primary dealers is from 675K – 1.2 million.

Stocks
London Stock Exchange (LON:LSEG) (3.5%) – 4.6% growth in total income. Increased dividend 7% to 25.0 pence per share.

Hikma Pharmaceuticals (LON:HIK) (-2.2%) – Core Group revenue grew 7%, Core operating profit grew 9% to $309 million. Upgraded outlook for generics divisions, injectables and branded outlook unchanged.

Trainline (LON:TRNT) (-0.4%) – Repurchased £28.6m in aggregate principal amount of the £150 million of senior unsecured Convertible Bonds due 2026.

Sanne Group (LON:SNNS) (+1.0%) – Confirms it is in advanced discussions with Apex regarding an offer and remains in discussions with Cinven. Cinven is considering its options and is working with Sanne regarding a possible offer.

Capita (LON:CPI) (-0.8%) – H1 financial results in line with expectations. Expect to deliver revenue growth this year and sustainable free cash flow in 2022.

ContourGlobal (LON:GLO) (+0.2%) – H1 consolidated revenue up 38% to $935 million. Adjusted EBITDA up 16% to $406 million. Increases full year guidance for Adjusted EBITDA to $780-$810 million.

Civitas Social Housing (LON:CSH) (+0.1%) – Financial performance in line with expectations. Circa 99% of rents received as normal with no Covid-19 impact during the quarter.

Compass Group (LON:CPG) (+0.7%) – Upgraded to overweight by Morgan Stanley (NYSE:MS)

Meggitt (LON:MGGT) (-0.2%) – Downgraded to market perform by Bernstein

Sectors
Housing names – House prices increased 0.4% MoM in July, according to Halifax. Annual price growth slows to 7.6% from 8.7% in June.