Burberry out of fash­ion as FTSE tum­bles

Mar­ket re­port Scott Reid

The Scotsman - - Business - HAL­FORDS

Fash­ion house Burberry proved to be a drag on the top flight after it re­vealed plans to close stores and push even fur­ther up the lux­ury mar­ket.

The group said that it will ditch its out­lets within de­part­ment stores and shut stores that are not found in or near com­mu­ni­ties of lux­ury shop­pers. Its shares slid 198p to 1,787p.

The wider FTSE 100 in­dex ended the day down 45.62 points at 7,484.1 as other ma­jor Euro­pean in­dices also tum­bled.

David Mad­den, mar­ket an­a­lyst at CMC Mar­kets UK, said: “Stocks in Europe sold-off as the sud­den and se­vere de­cline in the Nikkei 225 overnight trig­gered fears around the world.

“Lately, stock mar­kets in Europe have been lack­lus­tre as there has been no ma­jor change to the eco­nomic or po­lit­i­cal out­look.”

Voda­fone shares were one of the best per­form­ers on the Foot­sie, up 5.9p to 221.8p after re­veal­ing it was en­ter­ing into part­ner­ship with net­work in­fra­struc­ture firm Ci­tyfi­bre to bring fi­bre con­nec­tiv­ity to as many as five mil­lion UK homes and busi­nesses by 2025. Ci­tyfi­bre surged 17.5p to 60.75p on the news.

Sains­bury’s fell 4.3p to 229.2p as the gro­cery gi­ant re­ported a fall in half-year prof­its and a sharp slow­down in sales growth amid fierce com­pe­ti­tion in the mar­ket.

Shares in Redrow tum­bled 44p to 597.5p as the house­builder said that “on­go­ing po­lit­i­cal and eco­nomic un­cer­tainty” had caused sales to slip in re­cent weeks com­pared to a “very strong” mar­ket last year. Per­sim­mon was down 110p at 2,662p and Bar­ratt De­vel­op­ments fell 23p to end the ses­sion at 612p. The stock soared after the com­pany an­nounced a ma­jor part­ner­ship with Voda­fone that will bring fi­bre con­nec­tiv­ity to mil­lions of UK homes. Shares were weaker after the car parts re­tailer re­vealed that half-year prof­its took a knock from in­creased costs linked to the Brexit-hit pound.

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