London stocks finished the week slightly lower, held back throughout most of the session by a stronger pound after solid retail sales and manufacturing data.
Chris Beauchamp, chief market analyst at IG, said: “‘Guardedly positive’ is perhaps the best way to describe today’s session […]
“The picture today for risk assets looks a lot more positive than it did mid-week, as inflation concerns continue to subside and today’s suite of stronger economic data provides a continued argument to stick with equities. However, until we clear the peaks seen a week ago some caution will linger.”
By the end of the session, the FTSE 100 was down just 0.01% at 7,018.05, while sterling had surrendered its early gains to trade down by 0.25% against the US dollar to 1.4154.
The second tier index meanwhile was 0.03% higher to 22,399.42.
Figures released earlier by the Office for National Statistics showed that retail sales surged in April as non-essential stores reopened.
Retail sales jumped 9.2% on the month following a 5.1% increase in March and versus expectations for a 4.5% rise. The largest contribution came from non-food stores, with sales at clothing stores up 69.4%. Compared with April 2020 – during the first national lockdown – retail sales were up 42.4%, exceeding expectations for growth of 36.8%.
Sales volumes are now 10.6% higher than in February 2020, before the impact of the coronavirus pandemic.
Elsewhere, a survey showed that UK business output rose at the fastest pace for more than two decades in May as the economy reopened and confidence strengthened, a survey showed.
The flash IHS Markit/CIPS output index rose to 62 from 60.7 a month earlier. May’s score was the highest since the survey began in January 1998.
A score of more than 50 indicates growth. Services activity rose to a 91-month high of 61.8 while the UK manufacturing purchasing managers’ index hit 66.1 – the highest reading since 1992.
Both scores were “flash” figures that may be revised.
Kingfisher down on ‘profit taking’, HL downgraded at Citi
In equity markets, B&Q owner Kingfisher was in the red, having risen a day earlier on the back of a first-quarter update.
Diversified Energy was under the cosh after it raised $225m through a placing and open offer to help fund the acquisition of certain upstream assets from Blackbeard Operating and Indigo Minerals. The shares were placed at 112p each, which is an 8.3% discount to the closing mid-market price on Thursday.
Shares of both Kingfisher and Diversified Energy had been trading near multi-year highs.
Hargreaves Lansdown was knocked slightly lower by a downgrade to ‘sell’ at Citi, which said the stock’s valuation looks rich and revenues are more likely-than-not to fall next year.
Going the other way, builders’ merchant Travis Perkins was in the black after saying it has sold its plumbing & heating distribution business to an affiliate of alternative investment firm H.I.G. Capital for £325m in cash.
Biffa gained after the waste management group struck a deal to buy the collections business and some recycling assets from Viridor Waste for £126m.
Close Brothers rose as it reported a strong third quarter, underpinned by new banking business and busy trading at its Winterflood securities operation.
Market Movers
FTSE 100 (UKX) 7,018.05 -0.02%
FTSE 250 (MCX) 22,399.42 0.03%
techMARK (TASX) 4,307.99 0.38%
FTSE 100 – Risers
BT Group (BT.A) 175.90p 2.96%
Flutter Entertainment (CDI) (FLTR) 12,965.00p 2.05%
Rolls-Royce Holdings (RR.) 105.12p 1.88%
International Consolidated Airlines Group SA (CDI) (IAG) 195.12p 1.73%
Imperial Brands (IMB) 1,665.50p 1.52%
Weir Group (WEIR) 1,835.50p 1.13%
Antofagasta (ANTO) 1,542.00p 1.08%
Entain (ENT) 1,579.00p 1.02%
Royal Dutch Shell ‘A’ (RDSA) 1,398.80p 1.00%
Smiths Group (SMIN) 1,549.00p 0.85%
FTSE 100 – Fallers
Kingfisher (KGF) 357.90p -4.36%
British Land Company (BLND) 512.60p -3.32%
Rightmove (RMV) 589.00p -2.00%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,190.00p -1.84%
Land Securities Group (LAND) 706.80p -1.70%
Informa (INF) 529.40p -1.67%
Taylor Wimpey (TW.) 170.10p -1.51%
Next (NXT) 8,022.00p -1.21%
Ocado Group (OCDO) 1,958.00p -1.19%
Johnson Matthey (JMAT) 3,168.00p -1.19%
FTSE 250 – Risers
Biffa (BIFF) 293.50p 5.96%
PureTech Health (PRTC) 368.50p 4.10%
Pantheon International (PIN) 2,630.00p 3.54%
CMC Markets (CMCX) 480.00p 3.45%
Coats Group (COA) 64.70p 3.19%
Chrysalis Investments Limited NPV (CHRY) 196.00p 3.16%
QinetiQ Group (QQ.) 336.00p 2.94%
Just Group (JUST) 108.30p 2.85%
Rank Group (RNK) 182.00p 2.71%
Bytes Technology Group (BYIT) 523.50p 2.65%
FTSE 250 – Fallers
Diversified Energy Company (DEC) 112.00p -8.35%
Trainline (TRN) 314.80p -4.32%
Future (FUTR) 2,802.00p -3.93%
Dunelm Group (DNLM) 1,498.00p -3.35%
Provident Financial (PFG) 265.40p -3.07%
Royal Mail (RMG) 526.40p -2.48%
Safestore Holdings (SAFE) 934.50p -2.20%
Ninety One (N91) 236.20p -2.15%
Pagegroup (PAGE) 592.00p -2.15%
Aston Martin Lagonda Global Holdings (AML) 1,880.00p -2.13%
