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FTSE in the red on Brexit and banking fears

16 June 2016 17:03

A sell-off in banking stocks pulled the FTSE into the red, down 0.3% to 5,950.48. Barclays, HSBC, Lloyds and Royal Bank of Scotland all declined as markets worried about low interest rates and Brexit risks.

The Bank of England issued a stark warning that the imminent Brexit vote was the 'largest immediate risk facing UK financial markets'.

A 1.3% increase in the gold price to $1,309 per ounce pushed up gold mining shares with Centamin (CEY) and Randgold Resources (RRS) among the FTSE's biggest risers.

West Texas Intermediate (WTI) crude oil slipped 3.5% to $46.33 and Brent crude oil dropped 3.5% to $47.24 per barrel, respectively.

Copper was 2% down at $4,519.55 per tonne.

MAIN NEWS OF THE DAY

Investors were relieved about plus-size fashion specialist N Brown (BWNG) didn't have a repeat of April's profit warning. It said trading was now in line with expectations, triggering a 5.5% share price rise to 226.2p.

The US consumer price index rose 0.2% in May, while unemployment increased in the week to 11 June said the US Bureau of Labor Statistics.

MID CAP RISERS AND FALLERS

Investors weren't fussed by a 3.9% drop in like-for-like sales over the past year at pile 'em high, sell 'em cheap retailer Poundland (PLND). They are more interested in whether Steinhoff will buy the company following yesterday's approach, sending the shares up 2.5% to 205p.

Restaurant Group (RTN) was among the stocks going ex-dividend, alongside Mears (MER) and Big Yellow (BYG).

Transport operator FirstGroup (FGP) announced plans to jointly bid for the South Western rail franchise with MTR. Investors weren't optimistic with shares 7.4% lower at 94.05p.

Engineer WS Atkins (ATK) said its revenue and profits increased ahead of market expectations, pushing shares 5.3% higher to 1,267p.

Storage specialist Safestore (SAFE) experienced double-digit growth after focusing on optimising operational performance through occupancy and rate growth, nudging shares up to 350p.

Bookie William Hill (WMH) fell 7% to 272.5p after Investec cut its recommendation to 'reduce' and lowered its target price in light of risks from new regulation.

SMALL CAP RISERS AND FALLERS

Investors didn't dig Baron Oil (BOIL) and InfraStrata (INFA) after they failed to find hydrocarbons at the Northern Ireland site, pushing their shares up to 30% lower.

Online estate agent Purplebricks (PURP) continued to disrupt the property sector by increasing its profit fourfold in the year to 30 April, despite sales and marketing costs soaring. Shares advanced 6.7% to 140p, also helped by news of expansion into Australia.

Gold digger Vast Resources (VAST) fell 17.9% to 0.16p amid further complications with an equity, warrant and loan note scheme and failing to generate enough cash to meet capital expenditure requirements.

India's SKIL Ports & Logistics (SPL) fell 13.7% to 47p after saying it may need more money for its port development in Mumbai.

Liontrust Asset Management (LIO) hiked its dividend by 50% and revealed a 21% rise in full year pre-tax profit. The market liked the news with shares up 5.2% to 284p.

Logistic support solutions provider Pennant International (PEN) was awarded a further contract with Lockheed Martin and said it expects to return to profitability at the end of June. Shares advanced 3.3% to 53.7p.

Health and safety company PHSC (PHSC) suffered a 9% fall of year-on-year revenue after a large asbestos management contract ended, causing shares to plummet 21.4% to 22p.

Story provided by StockMarketWire.com

Related Company: PLND

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