London’s FTSE 100 fell on Thursday as multiple companies including oil giant BP traded ex-dividend, while a drop in Sage Group following its forecast cut also weighed on the benchmark index.
The blue-chip FTSE 100 was down 0.4% and is set for the worst day in a month, while the mid-cap FTSE 250 edged 0.1% higher inching towards the key 21,000 mark.
“Yesterday’s inflation data sent markets hitting record highs. This is just short-term profit taking,” said Axel Rudolph, senior market analyst at IG Group.
“This (US inflation) was the big event of the week and now it’s out of the way and some people take money off the table”.
A soft US inflation report on Wednesday ignited hopes for two rate cuts from the Federal Reserve this year, sparking a global rally. Britain’s data calendar is relatively light, which puts the spotlight on the Bank of England’s external member of the monetary policy committee Megan Greene due to speak later in the day.
Shares of BP fell 1.9%, GSK was down 1.0%, Kingfisher slumped 3.7% and Tesco dropped 2.0% as these companies traded without the entitlement to their latest dividend payouts.
BT Group surged 10.3% and was the top gainer on the benchmark index after the broadband and mobile operator’s new CEO set out a path for a more than double free cash flow over the next five years.
A 14.3% jump in Helios Towers, after it reported first-quarter results, and gains in BT Group pushed the telecommunications sector to the top.
FTSE 100 hits 3-week high as cool labour data fuels rate-cut bets
Sage Group dropped 11% and was the top loser on the FTSE 100 after the enterprise software firm lowered its annual revenue forecast.
EasyJet lost 5.8% after it reported a first-half loss largely in line with company expectations ahead of a busy summer season.
Watches of Switzerland was on top of the mid-cap index with an 11.1% jump after the luxury retailer was ‘cautiously optimistic’ about 2025.
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