Home > World > Britain's FTSE retreats from one-month peak

Britain's FTSE retreats from one-month peak

Written by Business World, on 16th Feb 2017. Posted in World

article headline

Britain's top share index retreated from a one-month high on Thursday, weighed down by a fall among mining firms and those trading ex-dividend, while mid-cap engineer Cobham slumped after results.

The blue FTSE 100 index was down 0.4% at 7,272.58 points, in line with a broader decline among European indexes.

Falls among banks, oil & gas stocks and mining firms were the biggest weights, with shares in Anglo American and Antofagasta falling more than 2% as the price of copper eased.

Likewise a number of heavyweight companies dropped after trading without entitlement to their latest dividend payout, which included AstraZeneca, BP, Royal Dutch Shell and Imperial Brands, all falling between 1.7% to 3.5%.

British mid-cap stocks, however, saw some dramatic results-driven moves. Engineering firm Cobham tumbled 20% and was on track for its worst day on record after reporting earnings.

Cobham took a 150 million pound sterling charge on a troubled contract with Boeing and downgraded its 2016 trading profit again.

Drax Group also fell, down more than 11%, after reporting a disappointing set of results, with its core annual earnings falling 17% on weaker power prices and the loss of revenue from a green energy scheme.

"Because we are in a situation where global economic growth is weaker than it has been ... there is a premium that is attached to growth companies," Laith Khalaf, senior analyst at Hargreaves Lansdown, said.

"If those growth companies falter, then you can see a bit of doubt creeping into investors' minds and that can influence the share price."

However, a profit beat propelled Lancashire Holding's shares more than 9%. The property and casualty insurer posted a better-than-expected 2016 profit, helped by lower expenses and higher gains in the final quarter. (Reuters)

Source: www.businessworld.ie

More articles from World

image Description

Amazon Founder briefly becomes World's richest man

Read more
image Description

EU's top negotiator warns of possible delays to Brexit talks

Read more
image Description

Premier League costs hit profits at Sky

Read more
image Description

Mark Zuckerberg and Elon Musk argue about killer robots

Read more
image Description

World needs $94 trillion spent on infrastructure by 2040 says report

Read more