skip to content

Market Wrap - Close

FTSE suffers worst day in three months on surprise election news

18 April 2017 16:38

UK Prime Minister Theresa May shock decision to announce a snap general election on 8 June left the FTSE 100 down 2.5% to 7,147.50 at the close.

Investors seemed to back May's assertion that the election could provide 'certainty and security' as the country undergoes Brexit negotiations. But as sterling strengthened against the euro and dollar this put pressure on the FTSE 100's overseas earners.

Commodity prices also remained weak across the board with iron ore and copper the biggest casualties.

Anglo American (AAL) and Rio Tinto (RIO) were the biggest blue-chip fallers.

BP (BP.) slipped 3.5% as authorities were able to control an oil and gas spill on the north slope of Alaska after it was discovered on Friday morning, according to media reports.

Oil giant Royal Dutch Shell (RDSB) slid 2.8%, while high street banks Royal Bank of Scotland (RBS) and Barclays (BARC) acted as a further headwind.

OVERSEAS MARKETS

Investors on Wall Street were rattled by the uncertain political backdrop. The Dow Jones was 0.4% lower in early trading.

Overnight the crisis over North Korea kept Asian markets subdued as China’s SSE Composite and Hong Kong's Hang Seng slipped 0.7% and 1% respectively on Tuesday.

Japan remained resilient as the weaker yen helped exporting businesses such as Honda, prompting the Nikkei 225 to close 0.3% higher.

FTSE 250 RISERS AND FALLERS

Decent third quarter trading from asset manager Ashmore (ASHM) failed to excite the market as its shares retreated 5.6% to 343p. The fall probably reflecting profit taking after a strong run for the shares. Management reported a 7% increase in assets under management to $55.9bn.

UK housebuilder Bovis (BVS) rose 2.1% to 930.5p thanks to a positive analyst note from broker Jefferies.

SMALL CAP RISERS AND FALLERS

Nearly half of ASA Resource’s (ASA) value was wiped off as the board reported there was strong evidence of funds amounting to ‘several million US dollars’ being transferred from the accounts of Freda Rebecca Gold Mine (FRGM) to entities in China. This was without full value being received by FRGM.

As a result of the shocking revelation, chief executive Yat Hoi Ning and finance director Mr Yim Kwan were fired. Several appointments by Ning were also said to be under review. The stock plummeted 51.8% to 1p.

Wey Education (WEY) rallied 21.7% to 14p after revealing in its half year results that it made its maiden profit after losing more than £400,000 last year.

It was a disappointing day for Circassia Pharmaceuticals (CIR) as its top-line results for its investigational house dust mite allergy immunotherapy Phase IIb field study revealed a failure to achieve to its primary goals.

Elsewhere in the pharma space, Motif Bio (MTFB) announced positive results from REVIVE-1, its Phase IIII trial of its investigational drug candidate iclaprim in patients with complicated skin infections.

The largest regional airline in Europe Flybe (FLYB) failed to fly higher as its chief financial officer Philip de Klerk resigned to take up the reins at another company.

Investors in cloudBuy (CBUY) faced a bleak outlook as management warned that its outlook for the business remained challenging. The firm reported that cost-cutting and a focus on realistic revenue growth will improve its position in 2017 and 2018.

LGO Energy (LGO) gained 2.5% to 1.97p as its second development well, GY-683 in Goudron field in the Mayaro Sandstone reservoir commenced production. Story provided by StockMarketWire.com

Related Company: ASHM

Info Point:

To buy or sell shares call our Dealing Room on 0113 243 6941.

Too much jargon? Our glossary will help make sense of things.

Find out more about our Share Dealing Services.

Client Area Access

» Secure Login

» Not registered yet?

-

Branch Finder

Redmayne-Bentley have High Street branches throughout the UK. Find your nearest branch.