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Royal Mail shares 3% higher, Anglo American leads FTSE 100
Royal Mail shares rose again today as the appointment of a new boss got the City’s stamp of approval following a year of strike turmoil.
Martin Seidenberg takes charge of owner International Distributions Services from next month, with one of his first tasks to find a new boss for the Royal Mail division.
Seidenberg has been promoted from logistics arm GLS, which now accounts for 40% of group revenue and has delivered significant profit in his three years in charge.
Alongside his appointment, IDS said Royal Mail revenues fell 4% to £1.8 billion in the June quarter but that addressed letter volumes had been more robust than expected.
The developments meant shares added another 3% or 8.3p to their highest level since last August at 275.1p, a level that compares with 173p last autumn and the 330p when Royal Mail shares listed ten years ago in October.
The postal business slumped to a £419 million loss in its last financial year, but City confidence has improved since a union ballot in favour of ending industrial action.
The mail firm’s momentum came during a robust session for the FTSE 250 index, which followed yesterday’s inflation-led 3.8% jump by rising 35.87 points to 19,358.39.
In a busy session for mid-cap updates, shares in homewares chain Dunelm rose 4% or 40p to 1153p after it said fourth quarter sales growth of 6% should mean annual profits slightly ahead of City expectations. It has also been pleased with trading so far in July.
The FTSE 100 index, meanwhile, followed yesterday’s 1.8% improvement by adding another 55.58 points to 7,643.78 as investors returned to the mining sector.
Anglo American jumped 5% or 124.5p to 2427.5p as it said the ramp-up of its new Quellaveco mine in Peru led to a 56% surge in copper production for the June quarter.
On the fallers board, Baillie Gifford investment trust Scottish Mortgage lost 11.2p to 700.6p after portfolio company Tesla last night disappointed Wall Street with its margin guidance.
Diageo also fell 46.5p to 3400.5p after Morgan Stanley gave the Guinness maker an “underweight” recommendation and new 3000p target price.
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