FTSE 100 movers: Miners shine brightly over gloomy retailers

Thu 11 Jan 2018

LONDON (SHARECAST) - (ShareCast News) - The FTSE was flat on Thursday as miners helped offset a heavy fall in Marks & Spencer shares and other retailers who piled in with gloomy trading updates.

Marks & Spencer said UK like-for-like sales fell 1.4%. Over the 13 weeks to 30 December, M&S food LFL sales fell 0.4% in what the group blamed on "ongoing trading pressures continued in the lead up to Christmas as consumer spending and choices reflected tighter budgets", though other supermarket groups seemed to do a lot better.

Tesco fell after its sales for the Christmas period missed City forecasts. For the 13 weeks to 25 November, Britain's largest grocery group increased like-for-like sales 2.3% in the UK and Ireland, and then for the six-week festive trading period to 6 January, saw LFL growth of 2.0%. This was a fairly strong performance, but expectations were for 2.4% growth in the third quarter and 2.8% for Christmas.

Away from the retail sector, housebuilder Barratt Developments was weaker after saying total completions improved in the first half of the year, but sales rates remained flat. Peers Taylor Wimpey and Persimmon also fell.

IG analyst Chris Beauchamp said Barratt's "protestations about how things have much improved over the past five years cut little ice with a market that is forward-looking, and already the models are being downgraded to anticipate weaker growth in the year ahead".

A weak pound and higher copper prices helped boost miners, who benefit because they trade in dollars.

Anglo American led the charge, receiving an added lift from a Morgan Stanley upgrade.

Bunzl rose after saying it expects US tax changes to have a positive impact from this year and announcing acquisitions in the UK and the US.

Market Movers

FTSE 100 (UKX) 7,753.79 0.07%
FTSE 250 (MCX) 20,736.96 -0.11%
techMARK (TASX) 3,513.68 0.12%

FTSE 100 - Risers

Just Eat (JE.) 799.60p 4.17%
easyJet (EZJ) 1,520.00p 2.77%
Anglo American (AAL) 1,746.40p 2.71%
Bunzl (BNZL) 2,058.00p 2.64%
Ashtead Group (AHT) 2,088.00p 1.70%
British American Tobacco (BATS) 5,048.00p 1.67%
National Grid (NG.) 849.50p 1.31%
Lloyds Banking Group (LLOY) 69.88p 1.30%
Antofagasta (ANTO) 1,027.50p 1.28%
BAE Systems (BA.) 585.20p 1.28%

FTSE 100 - Fallers

Marks & Spencer Group (MKS) 302.90p -6.51%
Tesco (TSCO) 203.30p -4.06%
Barratt Developments (BDEV) 613.40p -3.28%
Vodafone Group (VOD) 225.96p -2.86%
Barclays (BARC) 196.56p -2.31%
Taylor Wimpey (TW.) 196.00p -2.10%
Whitbread (WTB) 3,820.00p -2.05%
Berkeley Group Holdings (The) (BKG) 4,132.00p -1.97%
Mediclinic International (MDC) 604.80p -1.82%
St James's Place (STJ) 1,237.50p -1.59%
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14 Dec FTSE 250 movers: G4S sinks but Indivior rises on courtroom drama
14 Dec FTSE 100 movers: Miners and housebuilders decline; GVC gains
13 Dec FTSE 100 movers: Tui trots higher on results; retailers under the cosh
13 Dec FTSE 250 movers: Sports Direct dives, Superdry bounces
12 Dec FTSE 100 movers: WPP rallies on upgrade; Wood Group and Sainsbury's slump