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Market Wrap - Market Open

FTSE wipes 2017 gains after election shock

19 April 2017 09:31

The FTSE 100 experienced its worst performance in nearly two months as the shock snap election decision by UK Prime Minister Theresa May on Tuesday hit hard.

The blue-chip index fell a further 0.1% in early trading on Wednesday, wiping out any gains achieved so far in 2017.

Oil giants Shell (RDSB) and BP (BP.) continued to act as a drag on the blue-chip index thanks to flat oil prices and a stronger pound.

OVERSEAS MARKETS

The market wanted stronger results from big bank Goldman Sachs and medical devices Johnson & Johnson, who both failed to deliver, helping the Dow Jones to close 0.5% lower on Tuesday.

Asian markets failed to rally as the Nikkei 225 in Japan was flat on Wednesday, while equities in Hong Kong and China fell by up to 0.8%.

FTSE 100 RISERS AND FALLERS

Primark owner Associated British Foods (ABF) firmed 3% to £28.98 on a first half earnings beat, driven by Primark and a rebound in sugar profits. Management also raised guidance for the full year and expected to report 'good growth' in operating profit.

SMALL CAP RISERS AND FALLERS

Two new supply agreements from technology solutions provider Altitude (ALT) excited investors as one of the deals will give the group access to the $100bn US print market. The stock jumped 26.8% to 76p on the good news.

Things were looking up for Asa Resource (ASA) following yesterday's shocking revelations that hit its share price hard. The company said that continuing cash flows Freda Rebecca Gold Mine and Bindura Nickel were expected to be adequate for its normal working capital requirements.

Management also reported that the total amount of unaccounted funds is $4.3m. Shares in the firm were up 18.8% to 1.2p.

Video game creator Frontier Developments (FDEV) announced profit for its current financial year was expected to beat expectations, causing the stock to level up 13% to 345p.

The market was not impressed by European Metals' (EMH) preliminary feasibility study as it became the biggest small cap faller in early trading. Shares in the business dropped 18.7% to 61.7p.

Turbo Power Systems (TPS) said it was 'highly likely' that it would stop trading on AIM as a major shareholder issued a letter of intent to vote in support of the decision, triggering a 83.8% decline to 0.01p.

Story provided by StockMarketWire.com

Related Company: ABF

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