Tobacco makers lead the way as FTSE breaks three-day losing streak
The FTSE closed at 7,451.54, gaining 0.5%, or 39.09 points.
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Your support makes all the difference.London’s top share index broke a heavy three-day losing streak on Thursday, as tobacco companies rebounded from the hit of a new proposed cigarette ban.
Golden Virginia maker Imperial Brands – which had results out on Thursday morning – and British American Tobacco crowded near the top of the FTSE 100.
“Imperial Brands saw a sharp fall to 18-month lows yesterday after the announcement that the UK will raise the legal smoking age over time, as well as announcing the prospect of restrictions on the purchase of vaping products to children,” said CMC Markets analyst Michael Hewson.
But its results on Thursday showed that new products such as vapes are growing strongly and the business’s shares bounced back. By the end of the day, they were up by 3.9%, top of the FTSE 100.
They were joined by Tesco, which had its outlook upgraded by several brokers on Thursday morning after it raised its profit outlook the day before.
The FTSE closed at 7,451.54, gaining 0.5%, or 39.09 points.
A slump in the price of oil – down 1.3% to 84.71 dollars per barrel by the close of play in Europe – had earlier weighed on London-listed energy giants BP and Shell.
But by the end of the day neither was struggling very much. Shares in BP were flat while Shell’s had risen 0.5%.
The Dax in Germany fell 0.2% on the day while France’s Cac 40 was flat. In New York, the S&P 500 had dropped 0.7% by the time markets in Europe were closed. The Dow Jones was down 0.5%.
In company news, shares in National Grid closed up 1.2% after reporting that its performance was “in line” with expectations over the last six months.
Shareholders of Metro Bank, meanwhile, saw the value of their investments plunge by 28.5% after the business revealed that it is considering plans to raise enough cash to help manage its debts.
After the news, and reports that the company might be looking to raise around £600 million in equity funding and loans, the bank’s shares tanked.
The biggest risers on the FTSE 100 were Imperial Brands, up 62p to 1,642p, Tesco, up 9.7p to 280.4p, IAG, up 3.85p to 155.1p, Frasers, up 18p to 805.5p, and Centrica, up 3.2p to 150.35p.
The biggest fallers on the FTSE 100 were JD Sports, down 4.3p to 140p, Anglo American, down 33p to 2,108.5p, Fresnillo, down 7.4p to 513p, Weir Group, down 20.5p to 1,822.5p, and Barclays, down 1.36p to 152.52p.