MARKET REPORT

STERLING was out of favour once again yesterday after retail sales data disappointed.

The pound dropped under 1.30 when official figures showed retail sales were down by 0.5% last month, as compared to May. Economists were predicting sales to rise by 0.2%.

Experts are divided over whether the Bank of England will raise rates in August.

Data released on Wednesday showed inflation stalled at 2.4% in June, suggesting the Bank might choose to hold rates.

By the close on Thursday, the FTSE 100 had climbed 0.1%.

In UK stocks, Royal Mail shares edged up 1.1p to 468.6p after shareholders voted against pay for its new Zurich-based boss.

Energy giant SSE has blamed Britain’s heatwave and soaring wholesale gas prices for an earnings hit of around £80m, knocking shares by 32.5p to 1,352p. Sports Direct’s shares slumped 7.1% or 31.1p to 405p after it took a £85m hit on its Debenhams stake. Online retailer AO World posted a bump in sales, but warned demand had fallen heading into the summer. Shares edged down 0.4p to 144p.

Moneysupermarket.com shares closed 19.1p higher at 328.4p as it unveiled plans for a mortgage comparison site, in a joint venture with HD Decisions.

Sky’s shares were down 22.5p to 1,508.5p by the close when it emerged Comcast was scrapping its plans to bid for Rupert Murdoch’s 21st Century Fox assets, and would focus solely on a £26bn takeover of UK broadcaster Sky. Goals Soccer Centres said its sales were knocked by the Beast from the East, knocking its shares by 21% or 18.5p to 68p.

The biggest risers on the FTSE 100 were Unilever up 127.5p to 4,330.5p, Imperial Brands up 53p to 2,905.5p, Coca-Cola HBC up 51p to 2,801p and BP up 7.7p to 569.9p.

The biggest fallers on the FTSE 100 were Anglo America down 69p to 1,622p, Melrose Industries down 7.1p to 218.4p, Ashtead Group down 72p to 2,340p and WPP down 34.5p to 1,141p.