FTSE 100 loses direction on mixed day

Engineering firm GKN and miners dragged the FTSE 100 into the red yesterday, with a broker downgrade for Just Eat also weighing on London’s top flight.

The index closed down 0.13%, or 9.75 points, at 7,214.76 with GKN the biggest faller, ending the day down 11p at 424.1p.

It came after GKN rejected a final £8.1 billion takeover offer from Melrose Industries, saying it “continues to fundamentally undervalue” the engineering firm. Melrose shares closed 4.9% lower at 213.5p, making it one of the worst performers on the FTSE 250.

Miners Randgold and Fresnillo were also among the fallers on the top flight as they tracked metal prices lower, both falling around 0.8%.

Shares in Just Eat fell following a downgrade from Deutsche Bank from sell to hold.

The takeaway delivery firm ended the day down 0.86% at 781.6p.

Fiona Cincotta, senior market analyst at City Index, said: “Dominating the loser board were the likes of GKN following another hostile bid from Melrose, and Just Eat following a broker downgrade.

In currency markets, the pound was trading higher against the US dollar, up 0.3% at 1.397, and rose 0.2% versus the euro to 1.127.

Shares in the takeaway delivery firm were down.