FTSE slides as strong pound drags on multinationals
The FTSE 100 moved 0.32%, or 24.6 points, lower to finish at 7,599.74.
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Your support makes all the difference.London’s main markets closed in the red on Thursday after trading was bogged down by the stronger pound.
Ex-dividend stocks, including Vodafone and Sainsbury’s, also pressed down the index of top London-listed firms, according to analysts.
The FTSE 100 moved 0.32%, or 24.6 points, lower to finish at 7,599.74.
Chris Beauchamp, chief market analyst at IG, said: “Given the swathe of ex-dividend names today it is not surprising that the FTSE 100 continues to struggle.
“A recovery in the pound against the dollar has also hampered the index, putting it on the back foot against other indices that have shown signs of strength.”
Sterling benefited from a cautious dollar to rise higher but impacted trading in UK-listed multinational firms.
The pound was up 0.86% to 1.254 US dollars and had gained 0.12% to 1.163 euros at market close in London.
Elsewhere in Europe, the other main markets were higher at the end of trading despite the eurozone falling into a recession after its economy contracted by 0.1% over the quarter to March, according to Eurostat.
Germany’s Dax index rose by 0.18% and the Cac 40 closed up 0.27%.
In the US, markets edged higher at the start of trading, despite surprise over the latest interest rate hike by the Bank of Canada, as weaker US jobless claims strengthened the case for a potential pause to rate rises stateside.
In company news, shares in transport giant FirstGroup shot higher after the firm said it expects to keep results on track over the year ahead despite ongoing rail strike action and being stripped of its TransPennine Express franchise by the Government.
The bus and rail firm said it expects “broadly consistent” earnings from its trains business in the year to next March and for its group results to be in line with expectations.
The group finished trading up 16.5p at 135.2p on Thursday.
Housebuilder Crest Nicholson was one of the day’s weakest performers after it reported shrinking sales and profits amid “rapidly” falling consumer confidence and rising borrowing costs.
The Surrey-based company said revenue fell by more than a fifth to £282.7 million in the six months to the end of April due to the uncertain economic backdrop.
Shares were down 17.8p to 231.6p at the close.
Investors in construction firm Galliford Try were more positive after it declared a 12p-per-share special dividend for the year to June, as it is due to receive a £26 million payment after settling a contract dispute.
Galliford Try shares were up 14.6p at 200p as a result.
The price of oil also fell, with a barrel of Brent crude falling by 3.4% to 74.30 US dollars at the time markets were closing in London.
The biggest risers on the FTSE 100 were Hargreaves Lansdown, up 25.8p to 857.6p, Entain, up 18p to 1,297p, Antofagasta, up 14.5p to 1,461.5p, Airtel Africa, up 1.2p to 128p, and BAE Systems, up 8.2p to 938.8p.
The biggest fallers on the FTSE 100 were Vodafone, down 4.33p to 74.15p, Sainsbury’s, down 10.5p to 267.5p, WPP, down 21.6p to 865p, Johnson Matthey, down 39p to 1,758p, and Endeavour Mining, down 40p to 2,042p.