London open: FTSE gains despite Asian tech selloff; Unilever jumps on results

(Sharecast News) - London stocks edged up in early trade on Tuesday despite heavy losses in Asian markets on concerns about tech stocks, with the top-flight index supported by its low exposure to the tech sector.

At 0848 BST, the FTSE 100 was up 0.3% at 10,812.31.

South Korea's Kospi tumbled more than 10%, triggering a circuit breaker, while Japan's Nikkei slumped 4% after The Information reported that China's Shanghai Yuliangsheng has started mass production of immersion deep ultraviolet lithography machines, a technology long-dominated by Dutch firm ASML.

Patrick Munnelly at Tickmill Group said: "Markets are getting relief from oil, but not from AI. Brent's retreat toward $88/bbl has eased some inflation anxiety ahead of the Fed, yet the bigger overnight story is a renewed semiconductor selloff as investors question the circularity, financing burden and competitive assumptions behind the AI capex boom.

"The result is an unusual tape: lower oil should be risk-positive, but chips are heavy enough to keep index sentiment fragile."

Munnelly said The Information report does not mean China has closed the entire lithography gap overnight, "but it does challenge one of the market's strongest assumptions: that bottleneck suppliers can preserve extraordinary pricing power indefinitely".

In corporate news, consumer goods giant Unilever rallied as it boosted its full-year outlook following a strong first-half.

Underlying sales growth in the six months to June end rose by 4.8%, driven by robust performances in homecare and beauty and wellbeing. Volumes sparked 4.2% and prices 0.6%. Operating profits were 2.6% higher at �4.9bn.

As a result, the blue chip now expects underlying sales in the second half to rise by between 4% and 5%, led by pricing, with full-year sales growth of between 4% and 6%.

Croda was also a high riser as the chemicals firm backed its full-year expectations and posted 4.6% growth in half-year organic sales.

Insurer Admiral was boosted by an upgrade to 'buy' from 'neutral' at RBC Capital Markets.

Industrial thread maker Coats Group surged after first-half results, while Man Group gained as it hailed record half-year assets under management of $253.6bn as at 30 June, up from $227.6bn at the end of December.

On the downside, Barclays slumped despite delivering a better-than-expected 17% jump in half-year profits driven by higher income in its global markets division and investment banking fees.

Pre-tax profit for the six months to 30 June came in at �6bn, beating forecasts of �5.94bn, while group income increased 11% to �16.5bn boosted by higher structural hedge income and a one-off �225m gain from the sale of the American Airlines credit card portfolio. Barclays also announced a �1bn share buyback.

Susannah Streeter, chief investment strategist at Wealth Club, said: "Barclays results may have surpassed expectations, boosted by a revival in dealmaking, stronger investment banking activity and resilient consumers, but investors have a glass-half-empty view, unnerved about bad debt provision growing.

"There are also likely to be concerns about whether the bank can keep riding this investment wave or whether revenues could become choppier ahead."

Games Workshop fell as the miniatures wargames manufacturer reported record full-year revenue and profit, citing a "good" performance from the core business, but cut its dividend.

Market Movers

FTSE 100 (UKX) 10,812.31 0.28%

FTSE 250 (MCX) 23,946.82 0.20%

techMARK (TASX) 6,118.38 0.26%

FTSE 100 - Risers

Unilever (ULVR) 4,861.00p 5.06%

Admiral Group (ADM) 3,702.00p 3.45%

Reckitt Benckiser Group (RKT) 5,144.00p 2.39%

Imperial Brands (IMB) 2,874.00p 2.28%

Croda International (CRDA) 2,976.00p 2.12%

Diageo (DGE) 1,622.00p 2.01%

BAE Systems (BA.) 2,034.00p 1.95%

Melrose Industries (MRO) 482.30p 1.95%

Babcock International Group (BAB) 1,145.00p 1.82%

Whitbread (WTB) 2,503.00p 1.75%

FTSE 100 - Fallers

Barclays (BARC) 505.60p -4.56%

Games Workshop Group (GAW) 19,240.00p -4.50%

Kingfisher (KGF) 298.90p -1.74%

AstraZeneca (AZN) 12,702.00p -1.30%

Lion Finance Group (BGEO) 11,540.00p -1.27%

NATWEST GROUP (NWG) 672.20p -1.15%

Lloyds Banking Group (LLOY) 113.65p -1.05%

Prudential (PRU) 1,086.00p -0.96%

Halma (HLMA) 3,538.00p -0.73%

Flutter Entertainment (DI) (FLTR) 8,036.00p -0.67%

FTSE 250 - Risers

Coats Group (COA) 83.25p 8.06%

Man Group (EMG) 321.60p 7.80%

Discoverie Group (DSCV) 791.00p 4.47%

Globaldata (DATA) 81.25p 4.38%

Harworth Group (HWG) 127.00p 3.51%

Ceres Power Holdings (CWR) 379.00p 3.05%

Trainline (TRN) 239.00p 2.91%

Pantheon Infrastructure (PINT) 114.60p 2.46%

ICG Enterprise Trust (ICGT) 1,434.00p 2.43%

Hays (HAS) 60.65p 2.36%

FTSE 250 - Fallers

Pacific Horizon Inv Trust (PHI) 1,010.00p -4.36%

Unite Group (UTG) 538.00p -3.59%

Templeton Emerging Markets Inv Trust (TEM) 296.50p -3.27%

Vesuvius (VSVS) 382.20p -3.15%

Jupiter Fund Management (JUP) 161.20p -3.00%

JPMorgan Emerging Markets Growth & Income (JMGI) 156.20p -2.62%

Syncona Limited NPV (SYNC) 105.00p -2.60%

Schroder Asia Pacific Fund (SDP) 778.00p -2.26%

Polar Capital Technology Trust (PCT) 615.00p -2.14%

Henderson Far East Income Ltd. (HFEL) 255.50p -2.11%