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The FTSE 100 started positively on Tuesday, buoyed by solid corporate updates from both Kingfisher and Smiths Group, against a more mixed backdrop of geopolitical uncertainty and some caution in global trading conditions.
According to live data, the FTSE 100 gained ground, with notable movers including Kingfisher and Smiths Group, both rising sharply on the back of earnings updates.
Kingfisher shares surged 18.6% to £299.10, adding £46.90, after the B&Q and Screwfix owner raised its full-year profit guidance.
Smiths Group also climbed, up 3.62% to £2464.00, supported by stronger-than-expected annual results.
Other gainers included Howden Joinery (up 3.40% to £867), Land Securities (up 3.38% to £582), and easyJet (up 2.66% to £459.20).
The FTSE 100 index was up 0.2% or 20.59 points to 9247.27 in early morning trade, highlighting resilience despite broader macro headwinds.
Kingfisher reported adjusted pre-tax profit growth of 10.2% to £368 million for the six months ending 31 July. Sales at B&Q rose 4.4%, while Screwfix sales increased 3%. Improved trends in France and Poland also contributed to the upbeat results.
The group now expects adjusted profit at the upper end of £480-£540 million, with free cash flow between £480-£520 million, alongside an accelerated share buyback programme.
Smiths Group reported 8.9% organic revenue growth for the year to 31 July, above its guidance range. Operating profit increased 13.1% to £580 million, while margins expanded by 60 basis points to 17.4%.
The company also completed 80% of its £500 million share buyback programme and raised its annual dividend by 5.1% to £46 per share.
CEO Roland Carter said that the strong performance is reflective of “steady growth, strong returns and progress on the planned business break-up” with the company setting a 4 to 6% organic revenue growth target for next year.
In the US, the S&P 500 has gained 13.8% year-to-date, although the equal-weighted index is up just 7.65%, demonstrating the reliance on tech leaders such as NVIDIA.
European markets are more cautious, with strong earnings supporting the FTSE 100, as Kingfisher and Smiths Group offset weakness in retail. Commodity stocks also firmed as gold continued to hover near $3747/oz, while geopolitical risk and volatile energy prices kept sentiment overall subdued.
With upgraded guidance from Kingfisher and better-than-expected results from Smiths, investors gained confidence in the near-term earnings outlook for UK corporates. However, analysts note that concerns regarding mixed consumer sentiment, continuing geopolitical risks, and persistent inflation may provide headwinds for the index in the final quarter.
