The Scotsman

B&Q owner’s struggles take Footsie lower

Market report Emma Newlands

- MARSHALLS RANK GROUP

The FTSE 100 fell into the red, weighed down by Kingfisher shares that tumbled to three-year lows following a weak sales report from B&Q.

London’s blue-chip index ended the day down 45.16 points at 7,387.87, with Kingfisher emerging as its worst-performing stock down 12.6p at 294.8p.

Its shares temporaril­y hit multi-year lows in afternoon trading as investors reacted to a 4.7 per cent drop in like-for-like second-quarter sales at its DIY chain B&Q, which dragged down Kingfisher’s own revenue.

In currency markets the pound was mixed, trading flat against the US dollar at $1.288 and up 0.2 per cent versus the euro at €1.173.

Investors were digesting UK retail figures for July, which outstrippe­d expectatio­n as inflation-squeezed shoppers spent more money on food. The Office for National Statistics said July sales rose by 0.3 per cent in terms of quantity.

In UK stocks, Hikma Pharmaceut­icals tumbled 139p to 1,190p, becoming the worst-performing stock on the FTSE 250 after lowering its full-year revenue outlook.

The drugs giant said annual group revenue would come in at $2 billion (£1.6bn) after the generics business was confronted by “tough market conditions”.

The biggest risers on the FTSE 100 were Fresnillo, up 58p at 1,566p, Johnson Matthey ,up 64p at 2,818p, and London Stock Exchange Group, up 35p at 3,950p.

The biggest fallers included Standard Chartered, down 21.1p at 755p, Admiral Group, down 47p at 2,000p, and Royal Bank of Scotland, down 5.8p at 258.1p. The landscape products group said as it posted growth in revenue and profit for the first half of 2017 that it remains on track to fulfil its 2020 Strategy. The Mecca Bingo operator reported a 7 per cent drop in full-year pretax profit to £79.7 million, citing “challengin­g” UK market conditions.

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