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FTSE falls on high oil production and geo-political tensions

10 August 2017 16:55

The FTSE continued to underperform as geo-political tensions, ex-dividend stocks and higher oil demand hit the blue-chip index.

According to reports, OPEC's production rose for a third consecutive month and exceeded demand forecasts.

This unnerved investors as the oil cartel was aiming to cut production and triggered a shell off in Royal Dutch Shell (RDSB) and BP (BP.).

BP fell 2.4% to 457.7p and Shell 1.6% to £22.07.

The FTSE closed 1.4% lower at 7,389.

Brent crude oil retreated 0.3% to $52.54 per tonne and copper cheapened 0.8% to $6,415 per tonne.

Outside the FTSE, retailer DFS (DFS) continued to struggle as big ticket furniture orders fell in April, May and June. A volatile environment following the snap election results and warm weather made an impact.

DFS cut its earnings guidance towards the lower end of forecasts, causing the stock to fall 8.4% to 211p.

OVERSEAS MARKETS

On Wall Street, investors remained nervous following North Korea's threat of a missile strike on Guam, an unincorporated US territory, in the Pacific Ocean.

On Thursday, the Nasdaq continued to take the biggest hit, down 1% to 6,285.

In contrast, gold gained 0.9% to $1,284 per ounce from the growing tensions as investors sought a safe haven.

FTSE 100 RISERS AND FALLERS

Soft drink bottler Coca Cola HBC (CCH) fizzed 8.5% to £25.74 after operating profits rose by 20.8% to €266.4m.

Reports emerged this week that hedge fund manager Crispin Odey is considering taking away support for the takeover of Sky (SKY) by Twenty-First Century Fox owned by Rupert Murdoch. It was rumoured the support might be withdrawn as the £11.7bn deal is seen as undervaluing Sky, but this failed to move the share price at 954p.

FTSE 250 RISERS AND FALLERS

PageGroup's (PAGE) special dividend of £40m failed to get investors excited as the shares nudged 0.7% higher to 503.9p. The recruiter announced the payout after reporting strong growth in several of its international markets.

Property services group Savills (SVS) gained 2.5% to 934.5p thanks to group revenue growth of 7% to £714.4m in the first half of the year and a 5% rise in underlying profit to £48.1m.

Films such as 'Guardians of the Galaxy Volume 2' and 'Beauty and the Beast' helped Cineworld's (CINE) results in the first half of 2017. The cinema chains reported a 17.8% jump in sales thanks to a strong box office performance, causing the stock to advance 2.8%.

Greetings card company Card Factory (CARD) was stable at 324.6p after a 3.1% increase in like-for-like sales in the first half.

Challenger bank Aldermore (ALD) was lifted 1.4% higher to 224p thanks to profit increasing by over a third. The company said that strong demand from small and medium-sized business was partially behind the strong results.

Mining business Evraz (EVR) reported that core earnings nearly doubled in the first six months of the year to $1.15bn on the back of higher coal and steel prices. The stock was up 1.6% at 269.6p.

Story provided by StockMarketWire.com

Related Company: DFS

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