MARKET REPORT: Trump threat can't dent foreign fund firm shares with Ashmore posting a strong update
Emerging market investors don't seem to have been put off despite the advent of Donald Trump's presidency.
Investment firm Ashmore, which specialises in these regions, surprised shareholders with a strong update for the six months to December 31.
The business, which manages £42.5billion of assets, saw net revenue shoot up 24 per centto £144.1million over the period, boosted by a strong dollar.
Ashmore netted £21.6million in performance fees and said pre-tax profits had almost doubled to £121.5million.
Threat: Emerging market investors don't seem to have been put off despite the advent of Donald Trump's presidency
In a bullish update, the firm said it expected strong performance in 2017. After years of savers pulling money out of emerging markets, Ashmore expects sentiment to continue improving.
Stockbroker Numis said it was more cautious about how quickly funds would flow back into the region over the short-term and said the investment case was not strong enough to rate the stock a 'buy'.
However, Ashmore shares advanced 5 per cent, or 16p, to 335p.
The FTSE 100 climbed 0.6 per cent, or 40.68 points, to 7229.50 – the first time it has finished above 7200 in three weeks.
Mediclinic International was the highest riser of the day, gaining 2.5 per cent, or 20p, to 825.5p after Investec increased its target price.
St Ives continued its fall after announcing the previous day that Harper Collins would not renew its contract with the business when it ends in June.
The marketing and printing company was down another 4.4 per cent, or 2.75p, to 59.75p.
Meanwhile, Carpetright carried on climbing after revealing earlier this week it had returned to growth. Shares soared 8 per cent, or 16.5p, to 224.75p.
Smith & Nephew promised stronger performance in 2017 after revenue grew just 1 per cent last year.
The medical equipment firm, which makes wound care and hip implant products, reported full-year revenue of £4.67bililon and operating profit of £801million.
Weaker sales in China and the Gulf states had hampered growth, although there was an improvement in emerging markets at the end of the year.
Bank of America Merrill Lynch said Smith & Nephew had slightly missed expectations but product launches and robotics were likely to drive growth.
The firm has already completed its first total knee procedures using a robotics surgical product that it acquired in 2015. Shares were off 0.3 per cent, or 3p, at 1198p.
BHP Billiton's board has approved £1.8billion of spending for its share in the Mad Dog oil field in the Gulf of Mexico.
BHP holds a 23.9 per cent interest in the field, while BP holds 60.5 per cent and Union Oil Company of California the remaining 15.6 per cent.
Phase two of the project will see the existing field extended to include a new production facility, which is expected to produce up to 140,000 barrels a day when output begins in 2022.
BHP shares lost 0.3 per cent, or 3.5p, to 1338p, while BP edged up 0.6 per cent, or 2.75p, to 458.7p.
Pennon Group said it was on track to deliver a decent set of results for the year. The environmental infrastructure firm provides water and waste management services to 150 councils.
George Salmon, equity analyst at Hargreaves Lansdown, said: 'The investment case for Pennon is a simple one: the water business churns out regular growth and its waste management division, Viridor, adds the potential for a bit extra.'
Austerity and lower prices have been a challenge for Viridor this year, but the division is still on track to bring in £100millio of profit for the year. Shares surged 3.5 per cent, or 28.5p, to 845p.
Water Intelligence soared as it revealed revenue growth exceeded expectations, including at its newly acquired UK-based business NRW Utilities.
The US firm, which provides leak detection services, said revenue for the year was £9.7million, up from £7million the previous year.
Shares leapt 8 per cent, or 10p, to 135p.
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