Footsie suffers amid decrease in confidence

Market report Emma Newlands

London’s premier index drifted lower after research pointing to a slump in consumer confidence took its toll on blue-chip stocks.

The FTSE 100 Index closed down 12.44 points to 7,434.36, with the latest data from Yougov and the Centre for Economics and Business Research revealing a “pronounced collapse” in confidence after the general election.

Shares in retail giant Next were down 45p to 3,955p, while Marks & Spencer dropped 6.7p to 336.6p.

Sterling’s 0.5 per cent rise against the US dollar at $1.278 was also having an impact on multinational companies, with Hikma Pharmaceuticals sinking by 76p to 1,516p.

However, the London-listed mining giants still managed a strong session thanks to a robust economic update from China. Glencore was the biggest riser, up 10.5p to 287.7p, with Rio Tinto climbing 100p to 3,157p, for example.

On the currency markets, the pound was 0.6 per cent lower versus the euro after the single currency rallied when European Central Bank president Mario Draghi hinted that it could roll back its quantitative easing programme.

In the UK, banking stocks were ahead despite the Bank of England ordering lenders to put aside another £11.4 billion over the next 18 months amid a lending crackdown. Shares in Barclays and Royal Bank of Scotland rose by 2.9p to 202.8p and 2p to 251.8p respectively.

The biggest risers on the FTSE 100 Index included Anglo American, up 31.5p to 1,006p, and Antofagasta, up 23.5p to 774.5p.

The biggest fallers included GKN, down 14.9p to 331.2p, and Admiral, down 46p to 1,994p. A turnaround was highlighted by the retailer despite full-year profits plummeting. One analyst said investors “are seeing this as a glass half full”. The bookmaker suffered on a downgrade by Investec and Numis cut its fullyear forecast, citing the impact of regulation and sporting results.