Fresnillo, Clarksons and Kier

“The FTSE 100 opened higher after Chancellor George Osborne’s proposal to cut corporation tax from 20% to 15% following the Brexit vote,” says AJ Bell Investment Director Russ Mould.

Investor hunger for defensive stocks was underlined by an early surge in Fresnillo’s shares despite a technical glitch at its San Julian project in Mexico. Fresnillo, which is the world's largest producer of silver from ore and Mexico's second-largest gold miner, led the blue-chip board with Randgold Resources in close attendance.

Fresnillo has completed construction of the first phase of its San Julian project on time and on budget but the milling facility will not be up and running regularly until early August after a technical problem caused the lubrication system to malfunction during testing. Fresnillo remains on track to hit its output targets with higher than expected volumes produced at Saucito compensating for the shortfall at San Julian.

Shipbroker Clarksons’ shares plunged after it warned that fully year profits will be materially lower than last time. Freight rates are down due to the increase in global economic uncertainty and the continuing imbalance between supply and demand in shipping and offshore. Its shares were down by over 20% in early trading.

Construction group Kier is  on track and remains confident despite some uncertainty in the wake of the EU referendum. The Brexit vote has had no impact on the group’s business so far and the acquisitions of May Gurney and Mouchel have significantly increased the level of visible, long-term earnings from its construction and services divisions.

These articles are for information purposes only and are not a personal recommendation or advice.