MARKET REPORT

THE pound rallied yesterday following the agreement on a draft political declaration about the UK’s future relationship with the EU.

The pound was up 0.72% to $1.286. Sterling also rose 0.56% against the euro to €1.128.

The FTSE 100 was hit by the strong pound as many firms on the blue-chip index make the bulk of their money overseas. The index closed 89.91 points, or 1.28%, lower at 6,960.32.

British Gas owner Centrica closed down 13.45p, or 9.2%, to 132.3p after it warned of a hit of around £70m from the incoming energy price cap and revealed another 370,000 customers have quit the supplier. The energy provider said the earnings impact will be taken in the first quarter of next year, with the cap coming into force on January 1.

Shares in Toby Carvery owner Mitchells & Butlers rose 2.40p to 270p. Its profits declined as cold weather and football kept diners away, but it still managed to increase sales. Adjusted profit before tax fell from £180m to £178m in the year to September 29.

Mitie shares fell 3.60p to 153.3p after the firm cautioned over “competitive and challenging” industry conditions as it posted lower half-year earnings and revealed a £255m fall in its order book. The outsourcing group posted a 4.2% fall in underlying operating profits to £38.4m for the six months to September 30.

The biggest risers on the FTSE 100 were Just Eat, up 22.20p to 596.8p, Burberry up 64.50p to 1,819p, Royal Mail up 10.60p to 327.5p and EasyJet up 25.50p to 1,160p.

The biggest fallers were Fresnillo down 110.20p to

802.4p, Centrica down 13.45p to 132.3p, Smurfit Kappa down 138p to 2,152p and Evraz down 31p to 491.4p.