By Nick Kostov
LONDON (MarketWatch) -- U.K.'s FTSE 100 index was on track for
an almost eight-week high on Wednesday, with well-received earnings
from companies such as EasyJet PLC and ARM Holdings PLC boosting
sentiment.
The benchmark gained 0.7% to 6,641.48, after posting a 0.4%
decline on Tuesday.
Posting the biggest gain in the index, shares of EasyJet jumped
8.7% after the low-cost airline reported revenue for the third
quarter is up 10.5% to 1.14 billion pounds ($1.75 billion), buoyed
by an increase in capacity and improvement in revenue per seat. The
airline now expects profit before tax for the year to be between
GBP450 million and GBP480 million, up on the GBP317 million
recorded last year.
Public-transport operator National Express PLC added 4.6% after
reporting record non-rail results, but posted a 13.8% reduction in
first-half pretax profit as it was hit by cost inflation,
government cuts and the end of a rail contract.
ARM (ARMHY) shares picked up 3.9%, after the chip designer
reported a 27% increase in first-half revenue to GBP341.5 million.
The Cambridge-based company has benefited from exponential growth
in the mobile-device market in recent years, but is now facing
increased competition, particularly from Intel Corp. (INTC).
Also on investors' mind on Wednesday, shares of GlaxoSmithKline
PLC put on 1.6% ahead of the drug maker's earnings report later in
the day. Shares have dropped over the past three trading days amid
allegations of bribery in China. Chief executive Andrew Witty has
indicated he will outline Glaxo's response to the scandal when the
company reports.
In the food industry, shares of Compass Group PLC gained 1.7%,
as the contract food-service company reported its expectations for
the full year remain unchanged after strong third-quarter growth in
North America and its emerging markets.
Sugar manufacturer Tate & Lyle PLC added 1.9% after saying
its outlook for the year remains unchanged and reporting operating
profit for the quarter in line with expectations.
Other large companies to report were home-improvement giant
Kingfisher PLC , whose shares rose 1.8% after reporting its
comparable sales for the 10 weeks to July 13 rose 2.5%.
Property-investment firm British Land Co. PLC slipped 1.1% after
reporting encouraging demand for its space but adding retail
remains a challenge.
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