FTSE 100’s biggest players take the wind out of index’s sails

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The FTSE has found it impossible to maintain the bullish atmosphere

Without backing from Wall Street yesterday as US traders stayed home, the FTSE 100 managed only a small rise.

The index ended up by 14.6 points, hitting 7,600.06, a rise of less than 0.2%.

It was dragged down by some of its biggest components, meaning the rise was rather thin despite only 21 of the index’s approximately 100 companies being in the red.

Out of the top 10 biggest companies on the FTSE, six were in the bottom third of the index yesterday while none made it into the top third.

Among the heavier fallers was the largest firm on the index, drugs giant Astrazeneca, and cigarette maker British American Tobacco.

“The US drove the bounce last week and with the Americans at leisure today, the FTSE has found it almost impossible to maintain the bullish atmosphere,” said Chris Beauchamp, chief market analyst at online trading platform IG.

In Europe, sentiment was better than for London’s top companies.

The Dax in Frankfurt closed up 0.8% while France’s Cac 40 rose 0.7%.

Traders were home for Memorial Day in the US, so all markets were closed.

Against the dollar, the pound rose 0.09% to 1.2659 and 0.11% against the euro to 1.1744.

Yesterday kicked off what is set to be a quiet week for London’s company news ahead of the bank holiday weekend.

Advertising firm S4 Capital, led by former WPP boss Sir Martin Sorrell, was one of the few companies with any results.

Revenue and profits have both jumped, the company reported to investors, who rewarded it with a 4.3% bump in shares.

The biggest risers on the FTSE 100 were Melrose Industries, up 6.65p to 135.65p, JD Sports, up 4.55p to 124.5p, Ocado, up 33.8p to 935.2p, RS Group, up 34p to 966.5p, and IAG, up 4.56p to 336.6p.

The biggest fallers were Airtel Africa, down 8.1p to 151.8p, BAT, down 94.5p to 3,456p, Imperial Brands, down 27.5p to 1,769.5p, Aviva, down 6.2p to 434.7p, and Astrazeneca, down 112p to 10,468p.