Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Indexes  >  FTSE 100 Index    F100   GB0001383545

News SummaryAll newsNews of the components ofTweets

Weakest week in two months for FTSE as retailers, earnings weigh

share with twitter share with LinkedIn share with facebook
share via e-mail
11/10/2017 | 06:01pm CEST
Market makers work on the trading floor at IG Index in London

LONDON (Reuters) - British shares could not shake a downbeat mood on Friday and suffered their biggest weekly drop in two months as retail stocks continued to weigh, with Burberry and Bunzl leading losses.

FTSE 100 was down 0.7 percent, sliding for the second day alongside broad weakness in European trading. It ended the week with its heaviest loss in two months.

Industrials and construction stocks piled pressure on the index, tracking a slide in these sectors across Europe. They have been among the strongest drivers of stock market gains in the past months.

Bunzl dropped 6.3 percent, the weakest-performing large-cap stock, after a note from Morgan Stanley said the retail distributor's shares were not yet reflecting potential disruption from Amazon Business, the online giant's business-to-business distribution venture.

"Amazon's intention to target B2B distribution has resulted in a significant derating for Rexel, whilst Bunzl has been unaffected. However, the Bunzl offer appears more vulnerable to us," MS analysts said, recommending investors switch into the French distributor's shares.

Retailers weighed on the index for a second day after a week of downbeat results from Marks & Spencer and Sainsbury's confirmed investors' widespread pessimism on the sector.

A survey showed British shops suffered their worst October for sales in a decade, sending M&S and Primark owner ABF down 1.5 to 1.8 percent.

"The leading data suggests to us that demand will be weaker over the next 6 to 12 months," said Edward Park, investment director at Brooks Macdonald.

"We have already seen this in Q3 earnings for domestically focussed companies and CEO guidance for future quarters has been less optimistic."

Burberry sank for a second day, extending Thursday's sharp results-driven losses, after no fewer than five brokers cut their price target on the stock.

Belgian billionaire Albert Frere's decision to hike his stake in the trench coat maker from 4 to 6 percent wasn't enough to provide relief for the stock.

Energy providers Centrica and SSE, which have been under pressure due to the government's plan to cap prices on energy, fell 1.6 to 2.4 percent.

Among mid-caps Ultra Electronics shares sank 11.1 percent after the defence contractor said it expected a delayed decision from the U.S. Department of Justice on its $234 million purchase of Sparton Corp.

Rival defence contractors Babcock and Cobham also sank 0.9 to 2.1 percent, while outsourcers Capita and Serco dropped 2.6 percent each.

Morgan Stanley said the outperformance of FTSE small-caps - up 35 percent since the Brexit vote - could fade, as analysts grow more pessimistic, with earnings revisions for the index recently hitting an 18-month low.

"We are starting to see an acceleration in the number of UK companies talking more cautiously about the impact of Brexit," analysts at the U.S. bank added.

(Reporting by Helen Reid; Editing by Alison Williams and Hugh Lawson)

By Helen Reid

Stocks mentioned in the article
ChangeLast1st jan.
AMAZON.COM -1.02% 1693.0489 Delayed Quote.46.70%
BABCOCK INTERNATIONAL GROUP -1.38% 828.4 Delayed Quote.19.06%
BUNZL -0.65% 2281 Delayed Quote.10.81%
BURBERRY GROUP -1.02% 2140 Delayed Quote.20.65%
CAPITA -2.53% 159.75 Delayed Quote.-32.96%
CENTRICA 0.09% 158.15 Delayed Quote.15.08%
COBHAM -1.81% 127.5 Delayed Quote.2.81%
FTSE 100 INDEX 0.28% 7234.11 End-of-day quote.-5.90%
MARKS & SPENCER GROUP -0.34% 296.1 Delayed Quote.-5.62%
NEXT -0.70% 5968 Delayed Quote.32.82%
REXEL 0.12% 12.76 Real-time Quote.-15.74%
SCOTTISH AND SOUTHERN ENERGY -0.56% 1343.5 Delayed Quote.2.35%
SERCO GROUP PLC 0.41% 97.35 Delayed Quote.-1.97%
SPARTON CORPORATION 0.10% 19.2 Delayed Quote.-16.83%
ULTRA ELECTRONICS -1.59% 1606 Delayed Quote.21.16%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on FTSE 100 INDEX
03:13pDIAGEO : Proposes to Increase Stake in Sichuan Shuijingfang
01:56pTESCO : to Scrap Price-Matching Scheme
01:08pEUROPE MARKETS: European Stocks Drop Sharply As Trade Fears Lead To 'dark Moo..
12:48pLONDON MARKETS: FTSE 100 Falls As Trade Fears Show No Sign Of Abating
11:36aFTSE : dips as fresh trade war fears rattle global markets
06/22LONDON STOCK EXCHANGE : Oil majors push FTSE higher after OPEC agreement
06/22EUROPE MARKETS: European Stocks Finish Higher, But Still Suffer Weekly Loss
06/22LONDON MARKETS: FTSE 100 Ends Higher, Flipping Green For The Week
06/21LONDON STOCK EXCHANGE : FTSE falls after BoE vote fuels expectations of Aug rate..
06/21LONDON MARKETS: FTSE 100 Drops As Oil Shares Extend Losses; Pound Rallies On ..
More news
News of the components of FTSE 100 INDEX
03:48pSHIRE : Form 8.5 (EPT/RI) - Amendment
03:42pBT : Sees Fiscal Year 2019 Revenue, Ebitda Hit by New Accounting Standards
03:41pClamour for GSK shingles shot points to bigger profits
03:38pCARNIVAL : & plc Purchase of Shares
03:18pSHIRE : Form 8.3 -
03:13pDIAGEO : Proposes to Increase Stake in Sichuan Shuijingfang
03:08pBT : Announces ifrs 15 impact with outlook unchanged
More news
Chart FTSE 100 INDEX
Duration : Period :
FTSE 100 Index Technical Analysis Chart | F100 | GB0001383545 | 4-Traders
Technical analysis trends FTSE 100 INDEX
Short TermMid-TermLong Term
Top / Flop FTSE 100 INDEX
OLD MUTUAL 210.9 Delayed Quote.0.96%
UNITED UTILITIES 756.8 Real-time Quote.0.83%
CENTRICA 158.7 Real-time Quote.0.44%
UNILEVER 4149.75 Real-time Quote.0.39%
SEVERN TRENT 1935.75 Real-time Quote.0.30%
BHP BILLITON PLC 1608.3 Real-time Quote.-3.47%
GLENCORE 373.075 Real-time Quote.-3.64%
ANGLO AMERICAN 1626.9 Real-time Quote.-4.13%
MICRO FOCUS INTERNATIONAL PLC 1294.25 Real-time Quote.-5.11%
CARNIVAL 4361 Real-time Quote.-8.05%
Heatmap :