Direct Line, Greggs and AG Barr

"Blue-chips continued yesterday’s downward trajectory in early trading, following on from mixed sessions overnight on Wall Street and in Asia,” says AJ Bell Investment Director Russ Mould.

Insurance group Direct Line’s first half operating profits were hit by lower investment gains and the new Flood Re levy. The results, though, are set against a very strong comparator and the UK’s largest motor insurer strengthened its grip in this key sector with in-force policies up 2.5%.

Bakery giant Greggs continues to rise with sales boosted by its healthier ‘Balanced Choice’ menu. Total first half sales were up 6% with like-for-like sales increased by 3.8%. The group plans to open around 70 new shops this year but it faces inflationary pressure in wage costs as the national living wage increase takes effect.

The soft drinks sector lost its fizz in the first half of the year but IRN-BRU maker AG Barr maintained its market share although it expects revenues to be around 2.9% down on a year ago. The group is responding to changes in consumer tastes with the launch of a zero sugar variant of IRN-BRU and three major new low sugar products.

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