Market drops ahead of US rate decision

Market report Perry Gourley

Supermarket giant Sainsbury’s was one of the big fallers as the Footsie dipped ahead of the US Federal Reserve’s interst rate decision.

The FTSE 100 closed down 15.52 points at 7,234.53 with the retailer the worst performing stock on the index, falling 16p to 263.5p after reporting an 8.2 per cent drop in bottom line profits and warning over falling consumer confidence. It said higher costs – together with seasonal losses expected from Argos – will see firsthalf profits come in lower than the second half.

ITV shares slumped 3.7p to 207.8p after announcing that chief executive Adam Crozier will leave the company on 30 June after seven years.

Marks & Spencer shares dropped 4.3p to 366.5p amid news that it poached Halfords chief executive Jill Mcdonald to run its embattled clothing arm. Halfords Group shares fell 9.8p to 365p following the news.

Shares in Mitie Group leaped 19.9p to 231.3p despite revealing it would take a £40 million to £50m hit after a review of its books uncovered a “number of material errors”.

JD Wetherspoon rose 30p to 1,040p after reporting that like-for-like sales jumped 4 per cent in the third quarter to 23 April this year, while total sales lifted by 1.3 per cent.

Shares in Galliford Try plunged 156p to 1,306p after the group said it would take a £98m hit following a financial review of a number of projects.

The biggest risers on the FTSE 100 included Sage Group, up 23.5p to 707p, Johnson Matthey, up 89p to 3,097p and Pearson, up 11p to 656.5p. The facilities management group said an accounting review would lead to a writedown but also stressed the strength of the business. Shares in the construction group came under pressure after it revealed costs were higher than expected on a number of projects.