AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Markets

Financial, travel stocks weigh on FTSE 100; Morrisons drops

  • Morrisons shares drop on $9.5 billion takeover
  • Trading platform Plus500 gains on strong forecast
  • AstraZeneca up on breakthrough designation for drug
  • FTSE 100 down 0.2%, FTSE 250 off 1.3%
Published October 4, 2021

London's FTSE 100 index fell on Monday as weakness in financial and travel-linked stocks offset a bounce in energy, while Morrisons dropped after private equity firm Clayton, Dubilier & Rice (CD&R) won a bid for the company.

The blue-chip FTSE 100 index ended 0.2% lower, extending losses for the third straight session, weighed by weakness in financials including HSBC, Prudential and Lloyds Group.

Morrisons declined 3.8%, its worst single-day fall since September last year, after US private equity firm CD&R won the auction for Britain's fourth-largest supermarket with a 7 billion pound ($9.5 billion) bid, only marginally above its 285 pence a share offer, already recommended in August.

Peer Sainsbury's rose 3.3% on hopes that SoftBank's Fortress Investment could turn its attention to the company after losing the bidding war for Morrisons.

Homebuilders and financials drag FTSE 100 down; Smiths Group top gainer

The domestically focussed mid-cap index fell 1.3%, closing at over a two-month low, led by declines in consumer discretionary stocks.

The FTSE 100 is up nearly 8.5% so far this year on accommodative central bank policies and re-opening optimism.

The index is, however, 2.3% below the highest point hit this year as inflation risks and signs of slowing local and global economic growth have weighed on investor sentiment.

"Inflation continues to underpin market sentiment, with fears over a protracted period of above-target prices bringing expectations of a dramatic rerate in monetary policy expectations," Joshua Mahony, senior analyst at IG Group, said.

"Investors are growing increasingly fearful that the November and December period is characterised by a lack of supply and higher prices."

Limiting further losses were heavyweights BP and Royal Dutch Shell, up 2.1% and 2.2% respectively, tracking a jump in crude prices.

Among other stocks, AstraZeneca rose 0.8% after its breast cancer drug, Enhertu, received a breakthrough therapy designation.

Online trading platform Plus500 rose 1.8% after raising its forecast for the second time in less than three months.

Comments

Comments are closed.