MARKET REPORT

THE FTSE 100 fell into the red yesterday, weighed down by a stronger pound and a drop in Standard Chartered shares as investors lamented the bank’s decision to withhold a shareholder dividend.

London’s blue chip index closed lower by 0.16% or 12.23 points at 7,411.43, with Standard Chartered shares dropping 6% or 51.2p to 795p.

It comes despite a 93% leap in halfyear profits, thanks to restructuring efforts, with investors lamenting news the bank would not resume dividend payouts amid “regulatory uncertainties.”

The group said it would review its dividend policy at the end of the year.

The FTSE was also hit by sterling strength against a weak US dollar, with the pound rising nearly 0.2% to $1.323. Against the euro, the pound was down 0.2% at €1.115.

Investors were also digesting data showing that the UK construction industry endured a shock slowdown last month, sliding to its lowest level for nearly a year as commercial building eased. The Markit/CIPS UK Construction purchasing managers’ index (PMI) fell to 51.9 in July, down from 54.8 in June with economists expecting a figure of 54.1. A reading above 50 indicates growth.

Across Europe, the French Cac and German Dax ended the day down 0.39% and 0.57%, respectively.

Brent crude prices were up 1.3% at around $52.13 per barrel, after US data showing a further drop in crude inventories stateside.

The biggest risers on the FTSE 100 were Old Mutual up 5.6p at 203p, ITV up 4.3p to 175.8p, Paddy Power Betfair up 175p to 7,875p, and Kingfisher up 5.4p to 302.3p.

The biggest fallers on the FTSE 100 were Standard Chartered down 51.2p to 795p, Rolls-Royce Holdings down 36p to 943p, Rio Tinto down 99p to 3,403p, and Micro Focus International down 63p to 2,180p.