Sterling’s fall helps Footsie stay positive

Market report Perry Gourley

A fall in sterling amid concerns about the impact of a second Scottish independence referendum helped the FTSE 100 stay in positive territory.

The index edged up 9.3 points at 7,253 as multinational stocks benefitted from the fact they tend to benefit when foreign currencies are stronger than the pound.

Michael Hewson, chief market analyst at CMC Markets UK, said: “While this uncertainty is nothing new it also overlooks the fact that any new Scottish referendum would have to be sanctioned by the UK government, which isn’t likely given the reaction from Downing Street, while the existing Scottish Government would need to feel confident about winning it. Neither looks likely at this point.”

London Stock Exchange Group (LSE) shares fell 35p to 3,090p following news that its £21 billionmega-mergerwiththegermany’sdeutsche Borse is unlikely to go ahead.

It comes after LSE refused to bow to renewed EU competition concerns, rejecting requests to offload its 60 per cent stake in the Italian trading platform MTS.

Persimmon shares rose 5p to 2,030p after reporting a 23 per cent rise in annual pre-tax profits to £774.8 million and saying the new build market remains “confident.”

Shares in Associated British Foods fell 24p to 2,587p after the group said margins will take a hit due to the weak pound, although UK like-forlike sales at Primark in the six months to March are expected to rise 2 per cent. Insurers also fell after the UK government announced changes to personal injury payments. The distribution and outsourcing group reported a healthy rise in annual revenues and profits helped by the impact of the weakness of the pound. The insurer was one of a number in the sector hit by changes announced to the way personal injury damages awards are calculated.