MARKET REPORT
THE FTSE 100 was buoyed yesterday by a 6.3% jump in Paddy Power Betfair shares after the bookmaker said it was in discussions to merge its US business with fantasy sports firm FanDuel.
The company’s shares ended the day up 490p at 8,250p, helping push the FTSE 100 up 0.15% or 11.22 points to 7,734.2 points.
The prospective deal is hot on the heels of a US Supreme Court ruling which struck down a federal law banning gambling on individual sporting events. States will be able to choose individually whether to legalise sports betting.
In UK stocks, Micro Focus International was one of the biggest risers on the FTSE 100, up 78.5p at 1,347.5p after confirming that revenues would be at the better end of previous estimates.
It also announced it had secured a $40m contract earlier than expected, and comes in the wake of a 45% share price slump sparked by a profit warning in March.
Burberry jumped 64.5p to 1,868p as it posted a 5% rise in bottom line pre-tax profits to £413m as its overhaul started to bear fruit.
BT was one of the worst performers, down 3.8p at 203p, amid a pledge to bring all its call centres back to the UK and Ireland and converge its broadband and mobile networks.
Away from the top tier, Crest Nicholson tumbled 63.2p to 430.6p after reporting that flat property prices and higher costs were squeezing margins, which are now expected to come at the bottom end of guidance.
Marston’s fell 13.7p to 98.3p while Mitchells & Butlers tumbled 19.8p to 255.4p, as both pub groups took a first half hit on the back of wintry weather and higher costs. All Bar One owner Mitchells revealed an 8% fall in half-year pre-tax profits to £69m while rival Marston’s swung to an interim pre-tax loss of £13.4m against profits of £36.7m a year earlier after booking writedowns.
Shares in Moss Bros surged 5.75p to 52.8p as investors reacted to improved trading figures in the first quarter.
Like for like sales were down 5.2% in the 15 weeks to May 12 but were better than the figures seen in March of declines of 6.5%.
The biggest risers on the FTSE 100 were Paddy Power Betfair up 490p at 8,250p, Micro Focus International up 78.5p at 1,347.5p, Anglo American up 89.8p at 1,892.4p, and Glencore up 13.75p at 393.05p.
The biggest fallers on the FTSE 100 were Smurfit Kappa down 158p at 2,950p, Centrica down 7.5p at 140.9p, BT Group down 3.8p at 203p, and Royal Mail down 11.2p at 597.8p.