Election result jitters drag Footsie lower

Market report Perry Gourley

The FTSE 100 ended the day lower as investors continued to show caution in the wake of last week’s surprise election result. Political uncertainty also dragged on the pound after a delay to the Queen’s speech raised further speculation over the future of Theresa May’s fragile government.

The FTSE 100 closed down 15.46 points at 7,511.87.

David Madden, a market analyst at CMC Markets UK, said: “Traders despise uncertainty and that is exactly what we have got. By delaying the Queen’s speech, the UK is sending out a message of instability, when it badly needs clarity.

“Dealers will be determined to avoid the pound until they are given some positive news about May’s government”.

Brent crude prices rose 0.7 per cent to around $48.45 a barrel as investors bet that oil prices had reached a bottom and were due for a boost after Opec’s agreement to extend production cuts, announced last month.

Ocado shares slumped 19.4p to 270.5p amid news that the online grocer is exploring plans to raise at least £200 million through senior debt to fund further growth – a move which analysts say confirmed Ocado’s cash-poor position.

Motorpoint Group shares edged higher by 1.25p to 147.5p despite reporting a 30 per cent drop in annual pre-tax profits to £11.7m, citing a “challenging” period around the EU referendum when management was forced to cut prices.

The biggest risers on the FTSE 100 were Johnson Matthey, up 61p to 3,045p, Royal Dutch Shell, up 33.5p to 2,185.5p, and Tesco, up 2.7p to 183.45p. The outsourcer saw its shares jump after announcing a turnaround strategy in the wake of a string of high-profile profit warnings. The software firm said it had raised £7.5 million for working capital purposes via a placing as it conducts a review of its business operations.