London open: FTSE back near record high as updates from Sky and ARM impress

LONDON (ShareCast) - UK stocks were renewing their push towards record highs again on Tuesday, helped by well-received results from blue chips Sky (Other OTC: BSYBF - news) and ARM Holdings (LSE: ARM.L - news) . The FTSE 100 was up 0.60% at 7,094.78 within the opening hour.

The index rose as high as 7,105.13 early on, just shy of its intraday record of 7,119.35 reached last week. The all-time closing high of 7,096.78 was set on 15 April.

Stocks had rebounded strongly on Monday after two sessions in the red as China's central bank lowered the reserve requirement ratio by once percentage point in an effort to boost bank lending.

"The UK index is tickling 7,100 and once again looks like it could break its all-time record highs," said Spreadex analyst Connor Campbell. "This despite a fall back from the mining and oil stocks that were looking so strong yesterday, as Brent crude and copper lead the sectors lower." The German ZEW survey which measures economic sentiment is the only major data release scheduled for Tuesday's session. The main confidence index is forecast to have risen to 55.3 in April from 54.8 the month before.

Sky and ARM impress Third-quarter results from Sky generated the most growth in 11 years, as near 70% growth in new customers fed through to a 20% increase in operating profits. Shares (Berlin: DI6.BE - news) in the broadband and pay-TV group were rising strongly early on.

Also higher was smartphone and tablet microchip designer ARM Holdings which beat its own guidance with a 14% jump in dollar revenues in the first quarter of 2015. The company also gave an upbeat outlook, saying that dollar revenues for the full year should be "at least in line with current market expectations".

Associated British Foods (LSE: ABF.L - news) dropped after profits fell in the first half as the surging performance of its Primark fast-fashion chain was outweighed by a weaker sugar business. Adjusted operating profits were down 5% to £474m.

Lower commodity prices were weighing on stocks in the mining and oil sectors, which were pulling back after a decent performance on Monday. Rio Tinto (Xetra: 855018 - news) , Anglo American (LSE: AAL.L - news) , Shell (LSE: RDSB.L - news) and Glencore (Xetra: A1JAGV - news) were among the worst performers.

Rio Tinto said in a statement it expects to meet its full-year production targets but delivered lower-than-expected iron-ore shipments in the first quarter as a result of poor weather and transport delays.

Meanwhile, Barclays Capital downgraded its ratings on Rio and sector peer Anglo American to 'equal weight' and 'underweight' respectively.

Market Movers techMARK 3,243.92 +1.02% FTSE 100 7,094.78 +0.60% FTSE 250 17,737.77 +0.76% FTSE 100 - Risers Sky (LSE: SKY.L - news) (SKY) 1,101.00p +4.66% ARM Holdings (ARM) 1,193.00p +3.74% InterContinental Hotels Group (IHG) 2,860.00p +2.66% ITV (ITV (LSE: ITV.L - news) ) 272.60p +2.06% London Stock Exchange Group (LSE) 2,549.00p +2.04% 3i Group (III) 505.50p +2.02% Whitbread (WTB) 5,380.00p +1.99% Aggreko (EUREX: AGKF.EX - news) (AGK) 1,662.00p +1.96% Hargreaves Lansdown (LSE: HL.L - news) (HL (Shenzhen: 002105.SZ - news) .) 1,232.00p +1.90% Pearson (PSON) 1,400.00p +1.89% FTSE 100 - Fallers Associated British Foods (ABF) 2,781.00p -2.86% Rio Tinto (RIO) 2,821.50p -1.83% Anglo American (AAL) 1,024.00p -1.35% Kingfisher (KGF) 348.90p -0.77% BHP Billiton (NYSE: BBL - news) (BLT) 1,470.50p -0.74% Royal Dutch Shell (Xetra: R6C1.DE - news) 'A' (RDSA) 2,109.00p -0.57% SABMiller (SAB) 3,601.50p -0.51% Antofagasta (LSE: ANTO.L - news) (ANTO) 744.00p -0.40% Coca-Cola HBC AG (CDI) (CCH) 1,341.00p -0.30% Fresnillo (FRES) 714.00p -0.28% FTSE 250 - Risers International Personal Finance (LSE: IPF.L - news) (IPF) 500.00p +5.26% Just Eat (Other OTC: JSTLF - news) (JE.) 459.80p +3.28% IMI (IMI (LSE: IMI.L - news) ) 1,286.00p +2.80% Fidelity China Special Situations (FCSS) 168.50p +2.74% Rightmove (RMV) 3,170.00p +2.72% Go-Ahead Group (GOG) 2,563.00p +2.44% AO World (Other OTC: AOWDF - news) (AO.) 189.70p +2.43% Investec (INVP) 610.50p +2.35% Informa (INF) 587.50p +2.26% Smith (DS) (SMDS) 378.60p +2.21% FTSE 250 - Fallers Petrofac Ltd. (PFC) 887.50p -2.74% Acacia Mining (Other OTC: ABGLF - news) (ACA) 280.40p -2.23% Clarkson (CKN) 2,202.00p -1.92% Premier Oil (LSE: PMO.L - news) (PMO) 169.80p -1.91% PayPoint (PAY) 860.50p -1.83% Lonmin (LMI) 133.80p -1.62% Wood Group (John) (WG.) 701.00p -1.20% Hunting (HTG) 593.50p -1.17% Jimmy Choo (LSE: CHOO.L - news) (CHOO) 166.20p -1.07% Kaz Minerals (LSE: KAZ.L - news) (KAZ) 232.50p -0.98%