London markets finish in red after downbeat trading updates
The FTSE 100 moved 0.36%, or 27.85 points lower to finish at 7,723.23.
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Your support makes all the difference.London’s markets suffered another weak performance as traders faced a quiet session on Wednesday.
A handful of downbeat trading updates, from the likes of JD Sports and British Land, pointed the FTSE 100 lower at the close of trading.
The FTSE 100 moved 0.36%, or 27.85 points lower to finish at 7,723.23.
The focus today, as it has been for most of this week, has been on individual company trading updates which have prompted some of the main decliners today on the London market
Michael Hewson, chief market analyst at CMC Markets, said: “Today’s market session has been more akin to watching paint dry with little in the way of strong direction in the underlying indexes, with the FTSE 100 slipping back, while the Dax has edged higher.
“The focus today, as it has been for most of this week, has been on individual company trading updates which have prompted some of the main decliners today on the London market.”
Markets elsewhere in Europe were more mixed, with trading updates from firms also providing direction.
The Dax rose by 0.34% and the Cac 40 decreased by 0.09% at the close as a result.
In the US, the main markets edged marginally higher in early trading amid hopes that politicians would secure a path forward regarding the country’s debt ceiling. But gains were eroded throughout the session.
Meanwhile, sterling had a broadly flat session despite indications from Bank of England Governor Andrew Bailey that the central bank could hike interest rates further if there were signs of persistence regarding inflation.
The pound was down 0.02% to 1.247 US dollars and up by 0.25% to 1.151 euros at market close in London.
In company news, JD Sports slipped in value despite the high street retail group revealing record profits and revenues.
The retailer reported a profit before tax and adjusted items of £991 million in the year to the end of January, compared with £947 million the prior year.
But shares closed 7.25p lower at 163p as it disappointed investors hopeful of a stronger profit outlook.
Real estate giant British Land was also among the FTSE 100’s biggest fallers after it said that it had significantly written down the value of its property portfolio after rises in interest rates.
The group fell to a £1 billion statutory loss as a result. It saw shares finish down 21.4p at 356.5p on Wednesday.
At the other end of the index, manufacturing and engineering firm Melrose climbed in value after it lifted its long-term profit guidance due to improvements in its aerospace operation. Shares rose by 20.6p to 488p.
Purplebricks’s remaining investors saw the dwindling value of their stock tumble even further after the online estate agent agreed a £1 sale to rival Strike.
The proposed sale is expected to make a small return to shareholders and preserve the business and brand, Purplebricks said. Shares fell 0.58p to 0.74p.
The price of oil rebounded from their lows of the week, with the IEA pointing to a potential recovery of demand in China.
Brent crude oil increased by 2.1% to 74.91 US dollars per barrel.
The biggest risers on the FTSE 100 were Melrose, up 20.6p at 488p, Rolls-Royce, up 4.7p at 152.85p, Sage Group, up 21.8p at 842.8p, IAG, up 3.55p at 159.25p, and Antofagasta, up 22.5p at 1,426.5p.
The biggest fallers were British Land, down 21.4p at 356.5p, Croda, down 338p at 6,342p, JD Sports, down 7.25p at 163p, London Stock Exchange Group, down 228p at 8,244p, and Mondi, down 34p at 1,267.5p.