Pound’s rise takes toll on stock market

Market report Perry Gourley

The FTSE 100 fell by more than 1 per cent as a stronger pound took its toll.

London’s blue-chip index ended the day down 75.18 points at 7,377.73, with major fallers including Reckitt Benckiser after the company revealed a fall in sales following a major cyber attack last month.

Reckitt shares emerged as the worst performer, down 258p at 7,623p.

The Durex-to-dettol firm confirmed like-forlike sales fell 2 per cent in the second quarter after a ransomware attack significantly disrupted its manufacturing and orders systems across a raft of markets, including the UK.

The FTSE 100 was also knocked by the higher pound, as multinational firms listed on the index tend to benefit when foreign currencies are stronger than the UK currency. The rise came despite an International Monetary Fund downgrade to the UK’S growth forecast.

Burberry shares were among the best performers on the FTSE 100 after Belgian millionaire Albert Frere raised his stake in the luxury retailer through his holding company GBL Energy Sarl from 3 per cent to 4 per cent.

Burberry shares ended the day higher by 9p to 1,652p.

Shares in B&M climbed 16.6p to 357.5p following weekend reports that supermarket giant Asda is mulling over a £4.4 billion takeover of the discount retailer, amid a flurry of consolidation in the supermarket sector.

Cranswick shares jumped 91p to 2,934p as the food giant churned out a 27 per cent rise in first quarter sales, helped by a strong performance in the UK. The internet domain seller saw its shares rocket after it announced it had reappointed its former chief financial officer Don Baladasan, who left in 2014. The diamond miner came under pressure after revealed it had missed production targets and seen its debt levels increase.