The FTSE 100 finished Friday’s trading session in the red after Austria decided to impose another lockdown amid a surge in Covid cases across Europe and Germany’s health minister warned he could not rule out fresh lockdowns either, worrying developments which revived concerns over weaker economic growth.
By the close, the blue chip benchmark was down 0.45% at 7,223.57 points, while the FTSE 250 ended 0.35% lower at 23,492.49.
Among the FTSE’s biggest fallers were British Airways owner International Consolidated Airlines (IAG) and aero-engineer Rolls-Royce (RR.), marked down 3.8% to 148.5p and 3.9% to 136p respectively.
Lockdown-related fears overshadowed the earlier, brighter news that UK retail sales volumes rose by 0.8% in October, compared with economists’ forecast for a 0.5% rise, according to The Office for National Statistics.
That strength was partly attributed to consumers starting their Christmas shopping early, with non-food sales rising by 4.2% as shoppers bought toys, clothes and sports equipment.
CORPORATE NEWS
Ocado (OCDO) topped the FTSE 100 leader board, shares in the robotics-led groceries platform ripening 6.8% to £18.98 on speculation Marks & Spencer (MKS) could buy out Ocado’s UK retail arm, of which the high street stalwart is a 50% shareholder.
Consumer goods giant Unilever (ULVR) gained 0.7% to £38.49 it agreed to sell its global tea business to CVC Capital Partners for €4.5 billion or roughly £3.8 billion.
The sale, which includes household brands Lipton’s and PG Tips, is part of Unilever’s strategy to improve shareholder returns by focusing on higher-growth and higher-margin businesses.
KINGFISHER DIPS
Home improvement retailer Kingfisher (KGF) continues to take share in a booming market for DIY products and upgraded its full year profit outlook following a good start to the fourth quarter.
However, the shares fell 4.4% to 322.5p as investors focused on a 2.4% third quarter like-for-like sales decline. B&Q’s same-store revenues reversed 5.6% as the FTSE 100 retailer lapped strong, pandemic-boosted comparative.
Health, safety and environmental electronics equipment designer Halma (HLMA) was marked 1.3% higher to £31.65 as it unveiled a modest acquisition and as the market continued to reappraise its reaction to yesterday’s results.
Distribution and logistics provider Wincanton (WIN) posted a strong increase in first half sales and earnings thanks to new customer wins and contract extensions, lifting the shares up 2.4% to 390p.
RYANAIR TO EXIT LONDON MARKET
Shares in low cost airline Ryanair (RYA) drifted 2.3% lower to €15.92 after it announced its intention to delist from the London Stock Exchange next month.
The group maintained that the decision was prompted by the costs related to retaining an additional listing.
Plastics company Carclo (CAR) sparked up 3.5% to 43p after lifting its annual outlook on performance after swinging to a profit in the first half of the year, driven by strength in its technical plastics business.
