London pre-open: Bargain hunters expected to prop up UK stocks early on

4th Aug 2014 07:45

UK stocks are expected to open with small gains on Monday morning as investors pick up bargains after the heaving selling pressure experienced last week.The FTSE 100 has lost around 1.9% of its value over the last three trading sessions as a mixed reaction to US economic data and ongoing global geopolitics saw market participants scale back their appetite for risk.However, after closing at 6,679.18 on Friday - the Footsie's lowest finish since July 10th - City sources predict the index will open around 22 points higher on Monday.Developments in Portugal were helping to repair sentiment over the weekend after the central bank unveiled plans to save struggling lender Banco Espirito Santo (BES). BES will be split into 'good' and 'bad' banks as part of a €4.9bn rescue."European futures indicate a stronger open on news the Portuguese bank crisis has been given another lifeline," said Lee Mumford, a trader at Spreadex.Stocks to watchProduct testing, inspection and certification group Intertek said financial results for the first half were weaker than last year due to currency movements and continued headwinds in the minerals and energy-related businesses. Nevertheless, the company said that organic revenue growth should pick up in the second half "as one-off effects annualise and as we continue to see good growth in other areas of our portfolio".Aerospace components manufacturer Senior's revenues were essentially flat for the six months ended on 30 June at £400.4m. Profits before tax however grew 22% to £45.1m while free cash flows were 16% ahead on the comparable period of 2013 at £32.7m. The company, which said the outlook remains encouraging, unveiled a 10% increase in its dividend to 1.67p.Real estate group British Land has completed its third letting in three months at Marble Arch House in Central London with NERA Economic Consulting agreeing to rent out the third floor. The company said that the latest deal puts the building, which was bought and redeveloped in 2011, close to being 50% let.BC