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Market Wrap - Midday

FTSE falls on Trump win

09 November 2016 11:41

In a big political shock, Donald Trump won the US presidency, which caused the FTSE 100 retreat as much as 2% on opening, but the index was now 0.6% lower at 6,802.

Earlier futures markets pointed to a plunge of as much as 4%, so the trading action since suggests investors are starting to digest the shock result.

Trump's win prompted a slide in the dollar against the pound of 0.4% to $1.24, which hit the companies on the FTSE 100 which derive their revenue in that currency.

West Texas Intermediate (WTI) crude oil fell 0.4% to $44.79 and Brent crude oil retreated to $46 per barrel, respectively.

Gold, which is traditionally seen as a safe haven, gained 1.8% to $1,296 per ounce, while copper was flat at $5,247 per tonne.

WINNERS AND LOSER FROM THE US ELECTION

Pharma stocks and miners of precious metals are traded higher with Hochschild Mining (HOC) up 4% to 275.2p and Centamin (CEY) gaining 7.6% to 166.2p.

Hikma Pharmaceuticals (HIK) rose 7% to £17.78, AstraZeneca (AZN) gained 1.6% to £45.23 and GlaxoSmithKline (GSK) advanced 1.4% to £15.78, as the risk of price controls threatened by a Clinton administration receded.

US focused promotional products provider 4imprint (FOUR) was in negative territory due to its potential exposure to a Trump-inspired downturn across the pond.

BLUE CHIP RISERS AND FALLERS

Investors were unimpressed by Sainsbury's (SBRY) latest results after it reported underlying pre-tax profit for the first half down 10.1% year-on-year. The company said it will seek £500m worth of cost savings as it warns of cost inflation. The supermarket traded 5.4% lower at 241.6p.

Shares in credit agency Experian (EXPN) declined 4.7% to £14.46 despite delivering organic revenue growth of 5%, in line with management's targeted range.

The market was disappointed with luxury outfit Burberry (BRBY) following a 4% fall in pre-tax profit on ebbing demand in key markets such as Hong Kong, although the drop was roughly in line with expectations.

Utility SSE (SSE) failed to spark interest despite in line results and a dividend hike of 1.9%.

SMALL CAP RISERS AND FALLERS

Mosman Oil and Gas (MSMN) entered an agreement with a subsidiary of Cue Energy Resources to acquire an 80% interest in the Pine Mills producing oil field in Texas, US together with the acquisition of Buccaneer Operating. Shares soared 128% to 1.42p.

European regional airline Flybe (FLYB) flew 7% higher on its half year results, which revealed that lower fuel costs helped to offset weaker yields and reduced the total cost per seat by nearly 6%. Story provided by StockMarketWire.com

Related Company: HOC

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