ANL 15.53 Increased By ▲ 15.53 (0%)
ASC 13.14 Increased By ▲ 13.14 (0%)
ASL 17.85 Increased By ▲ 17.85 (0%)
BOP 8.33 Increased By ▲ 8.33 (0%)
BYCO 7.35 Increased By ▲ 7.35 (0%)
FCCL 17.52 Increased By ▲ 17.52 (0%)
FFBL 22.53 Increased By ▲ 22.53 (0%)
FFL 12.56 Increased By ▲ 12.56 (0%)
FNEL 7.50 Increased By ▲ 7.50 (0%)
GGGL 17.21 Increased By ▲ 17.21 (0%)
GGL 30.50 Increased By ▲ 0.50 (1.67%)
HUMNL 6.95 Increased By ▲ 0.30 (4.51%)
JSCL 19.40 Increased By ▲ 19.40 (0%)
KAPCO 27.31 Increased By ▲ 27.31 (0%)
KEL 3.36 Increased By ▲ 3.36 (0%)
MDTL 2.20 Increased By ▲ 2.20 (0%)
MLCF 35.00 Increased By ▲ 0.75 (2.19%)
NETSOL 104.99 Increased By ▲ 104.99 (0%)
PACE 4.12 Increased By ▲ 4.12 (0%)
PAEL 26.60 Increased By ▲ 26.60 (0%)
PIBTL 8.08 Increased By ▲ 8.08 (0%)
POWER 7.25 Increased By ▲ 7.25 (0%)
PRL 16.10 Increased By ▲ 0.30 (1.9%)
PTC 9.06 Increased By ▲ 9.06 (0%)
SILK 1.42 Increased By ▲ 1.42 (0%)
SNGP 39.74 Increased By ▲ 39.74 (0%)
TELE 16.61 Increased By ▲ 16.61 (0%)
TRG 123.46 Increased By ▲ 123.46 (0%)
UNITY 29.43 Increased By ▲ 29.43 (0%)
WTL 2.29 Increased By ▲ 2.29 (0%)
BR100 4,760 Increased By ▲ 116.8 (2.52%)
BR30 20,622 Increased By ▲ 327.01 (1.61%)
KSE100 45,851 Increased By ▲ 546.91 (1.21%)
KSE30 17,940 Increased By ▲ 231.5 (1.31%)
Markets

FTSE 100 falls as Reckitt Benckiser's quarterly sales disappoint

  • Reckitt drops to lowest since March 2020, misses estimates
  • FirstGroup CEO plans to step down in September; shares drop
  • Moonpig sees slowing demand on store reopening
  • FTSE 100 down 0.4%, FTSE 250 off 0.2%
Updated 27 Jul 2021

London's FTSE 100 fell on Tuesday, weighed by insurance and consumer staple stocks, with Lysol maker Reckitt Benckiser adding to the pressure as it missed quarterly sales estimates.

The FTSE 100 ended down 0.4%, with life insurers and consumer staple stocks down 1.8% and 1.4% respectively.

Reckitt dropped 8.4%, marking its worst day since February 2003, after missing sales growth estimates and warning on margins as costs rise and easing lockdowns slow demand for products such as Lysol disinfectants.

Other consumer staple stocks, including Imperial Brands , British American Tobacco and Associated British Foods, fell by between 0.1% and 1.1%.

FTSE 100 gains as miners jump; Vodafone top boost

"Investors are likely to be questioning the true defensive characteristics of these consumer goods companies," said Danni Hewson, financial analyst at AJ Bell.

"With consumers increasingly flocking to cheaper supermarket own-label products, the idea that the big brand owners are guaranteed sales success is no longer a given. Margin weakness only adds to the bear case for Reckitt."

The FTSE 100 has recovered nearly 26% since its October lows, when the country battled a deadly second wave of COVID-19 infections, amid support from dovish central bank policies.

However, the blue-chip index is still 12% away from its record high and has significantly underperformed its European and US peers.

Meanwhile, Prime Minister Boris Johnson warned Britons should not get carried away by six days of better COVID-19 infection data, while one of the country's top epidemiologists said the bulk of the pandemic could be behind Britain in just a few months.

European shares lower on China falls, Reckitt marks worst day in 18 years

The mid-cap FTSE 250 index fell 0.2%.

Among other stocks, British online greeting card publisher Moonpig tumbled 9.3% after it warned demand would slow in its new financial year as shops reopened.

Daily Mirror publisher Reach Plc gained 6.7% after it said it was trading ahead of expectations and that it expects the strong momentum to continue.

British transport company FirstGroup fell 0.2% after its Chief Executive Matthew Gregory said he planned to step down in September, a day after the company's biggest shareholder demanded his resignation.

Comments

Comments are closed.