Home > World > FTSE 100 gains on weaker pound

FTSE 100 gains on weaker pound

Written by Business World, on 22nd May 2019. Posted in World

article headline

The exporter-heavy FTSE 100 index gained on the back of a weaker pound on Wednesday as lawmakers signaled they would not back Prime Minister Theresa May's latest Brexit compromise, while Marks & Spencer slumped on news of a discounted rights issue.

The main index, whose companies get more than two-thirds of their profit from abroad, was up 0.3% at 0816 GMT, while the more domestically-focussed FTSE 250 was up 0.1%.

The indexes outshone European and Asian counterparts, where confidence was hit by media reports the United States is considering Huawei-like sanctions on Chinese video surveillance firm Hikvision.

A slide in sterling led internationally-exposed companies British American Tobacco, Unilever and Diageo to be among the biggest risers on the FTSE-100.

In contrast, blue-chip housebuilders including Persimmon and Barratt lost more than 2% after gaining in the previous session when May unveiled her new Brexit deal.

M&S slid 5% to a more than four-month low after it priced a rights issue at a big discount to Tuesday's close. It also reported a third straight decline in annual profit, emphasizing the pain of its latest turnaround plan.

SSE slipped 2% after reporting a slump in annual earnings and warning of an uncertain outlook due to the opposition Labour party's plans to renationalise energy networks.

Strong earnings reports lifted the mid-cap index, despite the pound's weakness.

Financial trading platform IG Group surged 9.1% after it unveiled a plan to drive growth even as it forecast a drop in full-year net trading revenue and operating profit.

That helped rivals Plus500 and CMC Markets to gains of 4.4% and 2.1% respectively.

Royal Mail, the former postal monopoly, gained 7.2% - its biggest one-day rise in 5-1/2 years - as investors focussed on the company's new five-year turnaround drive instead of a dividend cut.

Pets at Home jumped 10% after reporting better-than-expected revenue and forecasting higher earnings for 2020.

Weighing on the index was engineering services group Babcock , which tumbled 9.1% after saying it expected revenue and underlying operating profit to fall in 2019/2020. (Reuters)

Source: www.businessworld.ie

More articles from World

image Description

Ryanair seeks to limit UK share holding with buyback amendment

Read more
image Description

Euro reaches three month high as dollar sags

Read more
image Description

Iran-U.S. tensions take the edge off world stocks rally

Read more
image Description

Euro zone business growth picked up in June

Read more
image Description

EU leaders scramble for consensus on 2050 carbon neutral target

Read more