FTSE 100 decline continues as markets run out of steam, but Moneysupermarket.com
The UK’s blue chip index under pressure from weak banking sector after update from Barclays
- FTSE 100 down 50 points
- Barclays results disappoint
- Mining shares continue to climb
11.20am: Leading shares hit day’s low
The FTSE 100’s decline continues, with the leading index now at its lowest point of the day, down 0.75% or 50.03 points at 6660.87.
The two way pull between banks – negative after the results from – and the miners – positive in the wake of strong commodity and oil prices – remains on the side of the former. Barclays is now down 3.95% or 6.1p at 148.26p.
Meanwhile the FTSE 250 is also lower, down 74.38 points or 0.35% at 21,075.11.
Among the market’s brighter spots is Moneysupermarket.com (LON.MONY), up 16.8p or 6.27% at 284.8p. Full year revenues at the price comparison website fell by 11% to £345mln due to coronavirus disruption, while rofits dropped 24%. It said the outcome for the current year depended on how quickly the UK economy comes out of lockdown. But investors liked the fact the company held its dividend despite the decline in earnings.
Recent market arrival Moonpig Group PLC (LON.MOON) has added 14.8p or 3.41% to 449.2p. The online greeting card and gifts retailer said the week ahead of Valentine’s Day was the strongest in its trading history.
Elsewhere () () () has jumped 89.73% or 4.28p to 9.05p. The company, the first cannabis- sector business to float in London, was in demand after it signed an exclusive supply and distribution agreement with Swiss AG, for the sale and distribution of its food supplement ArtemiC products.
9.45am: Banks drag down leading index
Miners are dominating the day’s risers but cannot seem to rescue a flagging FTSE 100.
Rising commodity prices and positive updates this week from some of the major companies have combined to support the sector, but not the wider market. An economic recovery as the global vaccination programme rolls out will increase demand for commodities, and investors are jumping in to make the most of the subsequent rally in metal prices.
So Rio Tinto PLC (LON.RIO) has risen 225p or 3.61% to 6460p, Glencore PLC (LON.GLEN) is up 8.55p or 2.97% to 296.75p while BHP PLC (LON.BHP) is 52p or 2.32% better at 2296.5p.
However and Barclays PLC (LON.BARC) continue to drag down the market following their figures. Barclays is now down 4.36p or 2.83% to 150p, while Lloyds Banking Group (LON.LLOY) is 0.92p or 2.35% lower at 38.01p and NatWest Group PLC (LON.NWG) has fallen 2.3p or 1.29% to 175.85p.
So the FTSE 100 is currently down 22.4 points or 0.33% at 6688.5.
“Having started on Monday wide awake and making some bumper gains it feels like the FTSE 100 has hit the snooze button for the rest of the week,” said AJ Bell’s Russ Mould.
“The latest day of destiny for investor sentiment feels like it is coming on Monday when Boris Johnson is set to reveal the pace at which coronavirus restrictions will be eased in England.
“Other asset classes continue to surge, with the extreme cold in the US disrupting oil production and driving up prices of the black stuff beyond pre-Covid levels, while bitcoin continues to surge having taken out the $50,000 level.”
8.32: FTSE slips in early trading
Leading shares are marginally in the red in early trading after drifting higher initially.
The FTSE 100 has dipped 0.11% or 7.22 points to 6703.68 with Imperial Brands PLC (LON.IMB) among the leading fallers, down 3.75% or 56.5p at 1448.5p as it feels the effect of the strong pound.
Barclays PLC (LON.BARC) is down 1% or 1.54p at 152.82p following its results which showed a better than expected 30% drop in full year profits. But it has cautioned about the outlook given the continuing effects of the pandemic.
Susannah Streeter, senior investment and markets analyst, at Hargreaves Lansdown said:‘’Pre-tax profit of £3.1 billion is no mean feat for Barclays given the pummelling the banking sector has had from the…
Read More: FTSE 100 decline continues as markets run out of steam, but Moneysupermarket.com