RBS leads list of fallers after a downgrade

Market report By Perry Gourley

RBS was the biggest faller on the FTSE 100 after a downgrade by brokers at Deutsche Bank.

Shares fell by down 6.14p to 198.15p, contributing to the index falling 15.18 points to 6,879.42 on a quiet day of trading with the US market closed for the Labor Day holiday.

Tony Cross of Trustnet Direct said: “It may have been the big return to work today from the summer break, but the FTSE 100 has had distinctly uneventful session.

“The index has traded essentially sideways with the fact US markets have been closed for the Labor Day holiday detracting from sentiment.”

Fresh economic data showed Britain’s powerhouse services sector rebounded in August, with output beating expectations and marking a return to growth following July’s shock contraction.

Supermarket chain Morrisons saw its shares step up, finishing just under 1 per cent higher or 1.88p at 198.88p, following news of further price cuts on meat products at its UK stores.

Elsewhere in the retail sector, Marks & Spencer fell by 1.1 per cent or 4p to 350.1p, after announcing that it would axe 525 jobs at its head office in a bid to cut costs.

The company said 400 permanent staff from its central London office will be relocated, with a number of IT and logistic roles moved to operations in Hemel Hempstead in Hertfordshire, and Middlesex.

The biggest riseron the FTSE 100 was Paddy Power up 169.2p to 9,184.2p. The agricultural group is to return capital to shareholders after selling its food division to Whitworths Holdings for £36m. Shares in the resources firm fell sharply after it said it had suspended drilling operations at a US well after encountering difficulties.