- UK stocks opened lower on Tuesday as a recent recovery rally was sullied by disappointing updates from tobacco bellwether British American Tobacco and homebuilder Bellway.

At 0827, the benchmark FTSE 100 index was down 33.69 points, or 0.5%, at 6,438.0.

British American Tobacco slipped 2.7% to £30.385 after it downgraded its revenue and earnings guidance, as the Covid-19 pandemic hurt its performance in emerging markets.

British American Tobacco said earnings growth in 2020 would be at a 'mid single-digit' percentage, instead of previous guidance of 'high single-digit' growth.

Bellway dropped 1.8% to £29.06 on warning that home sales activity would be 'severely constrained' until lockdown restrictions were lifted further.

Bellway said home sales fell in August through May. All sales offices had reopened in England by 1 June, and construction activity had recommenced on around 230 sites.

Information technology company Aveva climbed 4.4% to £41.97, having held its dividend steady at 29p per share after it nearly doubled annual profit on higher revenue and margins.

Self-storage group Big Yellow rose 0.3% to £10.56 as it became one of few companies to up its dividend during the Covid-19 crisis, after stronger sales helped underpin a rise in its annual earnings.

Scientific and medical equipment provider Oxford Instruments firmed 1.1% to £12.7133 on reporting a 13% rise in annual profit, even as sales weakened in the latter part of its financial year due to the Covid-19 crisis.

Disease and allergy test kit supplier Omega Diagnostics fell 4.8% to 59p, despite it forecasting a slight annual earnings beat and broadening a Covid-19 antibody test arrangement with Mologic.

Online women's fashion retailer Sosandar jumped 35% to 11.78p, even as it warned of a deeper-than-expected annual loss owing to margin contraction.

Sosander also said its revenue for the year through March had more than doubled. In the new financial year, sales had risen 62% over April and May, helping to trim losses.

Personal care distributor Venture Life rallied 9.2% to 71.5p on announcing that it would 'comfortably exceed' market expectations for the current year.

Language and intellectual property support services group RWS was unchanged at 626p after it booked a 6.3% fall in first-half profit but held its dividend steady amid a 'limited' impact from the Covid-19 crisis.

RWS also announced that it had acquired Dublin-based machine translation group Iconic Translation Machines for $10m, plus additional deferred consideration of up to $10m in shares, plus Indian counterpart, for $21m.

Heavy construction materials group SigmaRoc added 4.7% to 43.44p on announcing that it recorded positive earnings during each of the first five months of the year, and that sales had bounced back in May.

Semiconductor company CML Microsystems shed 3.2% to 272p after it cut its dividend as its profit more than halved.

Internet of things group Telit Communications rose 1.3% to 128p after Britain's Financial Conduct Authority decided to not take enforcement action against the company after probing its market disclosures.

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