FTSE sours on back of sugar price warning

Market report Emma Newlands

London’s blue-chip index was weighed down by a drop in the share price of Associated British Foods (ABF) after the firm reported bitter results from its sugar division.

The FTSE 100 ended the day down 24.47 points at 7,700.96, marking its fourth consecutive session in the red.

It was dragged lower in part by a drop in the ABF share price, which closed lower by 102p at 2,755p after warning that sugar revenues would suffer from plunging prices over the full year.

In currency markets, sterling jumped to yet another fresh post-brexit-vote high against the US dollar overnight to hit $1.39, as investors fretted about political uncertainty in the US, with politicians grappling over the terms of further funding that would avert a government shutdown. The pound was trading up 0.5 per cent versus the greenback in afternoon trading at $1.389, but was flat against the euro at €1.134.

In UK stocks, Chemring climbed 9.8p to 188p despite the launch of a criminal investigation by the Serious Fraud Office into money laundering, bribery and corruption linked to business conducted by one of its subsidiaries. Investors instead focused on a 15 per cent rise in full-year revenues and a 14 per cent jump in underlying operating profit to £55.4 million.

The biggest risers on the FTSE 100 included Hargreaves Lansdown, up 79.5p at 1,919.5p, Evraz, up 15.3p at 388.4p, and Coca-cola HBC, up 52p at 2,412p.

The biggest fallers included SSE ,down42p at 1,300p, Randgold Resources, down 158p at 7,076p, and Mediclinic International, down 12.8p at 606.2p. Investors latched on to the Costa Coffee and Premier Inn owner saying it was set to hit its annual targets as it reaps the rewards of an efficiency drive. Shares came under pressure after Britain’s biggest listed estate agency warned that a poor end to 2017 would see profits knocked.