London open: FTSE gains on Hormuz reopening hopes, amid earnings deluge

(Sharecast News) - London stocks edged higher in early trade on Thursday amid hopes of a US-Iran deal to reopen the Strait of Hormuz, as investors waded through a deluge of corporate releases.

At 0847 BST, the FTSE 100 was up 0.3% at 10,924.09, while Brent crude was up 0.4% at $79.77 a barrel and West Texas Intermediate was 0.1% firmer at $75.29.

Market participants were mulling news that Iran's talks with Oman are progressing and that an agreement has been reached on a shipping route, although safe passage and a broader deal remain uncertain.

Stephen Innes at SPI Asset Management said: "Iran says it has agreed with Oman on the geographical coordinates of a temporary shipping route through the waterway, with a joint statement now reportedly in its final stages. Donald Trump has also suggested that a deal could be reached within days.

"For oil, this is the clearest de-escalation signal since the conflict began. If tankers start moving again, part of the remaining disruption premium should continue to come out of crude. Gulf exports can recover, freight costs should ease and insurers can begin reassessing the extraordinary war-risk charges built into the market.

"But the most important detail is the clock attached to the agreement.

"The proposed arrangement would last for only two to four months.

"During that provisional phase, Iran would reportedly send its own vessels, including oil tankers, through the route to confirm that it is clear of mines before commercial traffic resumes more broadly. Ships would not be charged transit fees during the trial period.

"That no-fee window is clearly bearish for oil. It removes another obstacle to restarting Gulf exports and gives tanker owners a reason to test the route without immediately paying an Iranian toll.

"The question is what happens when the trial period ends."

In equity markets, Metlen Energy surged to the top of the FTSE 100 as it hailed a record first-half performance, with revenue up 11% and earnings before interest, tax, depreciation and amortisation up 23%.

Insurer Admiral was also a high riser after results, while Persimmon rallied as the housebuilder said full-year completions were set to be at the upper end of guidance and reported a rise in first-half profit, although it also warned over inflationary pressures.

WPP rocketed to the top of the FTSE 250 as the advertising agency's interim profits beat analysts' expectations and the company said there had been a further sequential improvement in like-for-like growth in the second quarter.

Harworth shot up after Peel Group made a �580m takeover offer for the land and property firm, while Hikma and Serco advanced after results.

On the downside, OSB Group, TBC Bank, Tritax, Wizz Air, Michael Page, TP Icap and Quilter all fell on the back of results.

Budget airline Wizz reported a big drop in firstquarter profits as a 39% surge in fuel costs due to the Iran war offset strong passenger and capacity growth.

Market Movers

FTSE 100 (UKX) 10,924.09 0.33%

FTSE 250 (MCX) 24,708.37 0.31%

techMARK (TASX) 6,178.83 0.83%

FTSE 100 - Risers

Metlen Energy & Metals (MTLN) 51.33p 10.85%

Admiral Group (ADM) 3,860.00p 4.32%

Persimmon (PSN) 1,159.50p 3.56%

London Stock Exchange Group (LSEG) 8,784.00p 2.18%

Haleon (HLN) 372.90p 2.13%

BAE Systems (BA.) 2,191.00p 1.67%

Burberry Group (BRBY) 1,228.50p 1.61%

Babcock International Group (BAB) 1,200.00p 1.56%

British American Tobacco (BATS) 4,441.00p 1.46%

GSK (GSK) 1,940.50p 1.46%

FTSE 100 - Fallers

Relx plc (REL) 2,646.00p -2.21%

St James's Place (STJ) 1,110.50p -1.89%

Scottish Mortgage Inv Trust (SMT) 1,356.00p -1.63%

Fresnillo (FRES) 2,713.00p -1.20%

Schroders (SDR) 582.50p -1.19%

SEGRO (SGRO) 958.60p -1.05%

BT Group (BT.A) 199.55p -1.02%

Computacenter (CCC) 4,770.00p -0.96%

LondonMetric Property (LMP) 195.40p -0.86%

Smith & Nephew (SN.) 1,098.00p -0.86%

FTSE 250 - Risers

WPP (WPP) 388.10p 27.42%

Harworth Group (HWG) 171.60p 20.33%

Hikma Pharmaceuticals (HIK) 1,710.00p 9.17%

Ceres Power Holdings (CWR) 413.20p 7.03%

Serco Group (SRP) 255.80p 5.52%

Oxford Instruments (OXIG) 3,008.00p 4.74%

Harbour Energy (HBR) 241.80p 4.13%

4Imprint Group (FOUR) 5,050.00p 3.99%

Patria Private Equity Trust (PPET) 636.00p 3.58%

Applied Nutrition (APN) 342.00p 2.69%

FTSE 250 - Fallers

OSB Group (OSB) 488.20p -13.04%

TBC Bank Group (TBCG) 4,480.00p -9.26%

Wizz Air Holdings (WIZZ) 1,090.00p -4.27%

Tritax Big Box Reit (BBOX) 164.00p -4.19%

TP Icap Group (TCAP) 330.20p -4.11%

Quilter (QLT) 194.70p -3.75%

Jupiter Fund Management (JUP) 159.00p -3.05%

Man Group (EMG) 307.00p -2.66%

Templeton Emerging Markets Inv Trust (TEM) 309.00p -2.37%

Capital Gearing Trust (CGT) 515.00p -2.28%