Footsie flat as investors pass up UK stocks

Market report Emma Newlands

The London market was broadly flat and the pound suffered as the latest general election poll suggested Britain was heading for a hung parliament.

The FTSE 100 Index closed down by 0.81 points to 7,524.95, with one poll showing the Conservatives’ lead over Labour had been slashed by 17 points to just one over the last month.

Jasper Lawler, senior market analyst at London Capital Group, said: “Investors appear to be shunning UK domestic shares before the election.”

Sterling also recorded losses following the update, dropping 0.1 per cent versus the US dollar at $1.289 and falling 0.2 per cent against the euro at €1.143. The foreign exchange markets are concerned about any outcome other than a Tory majority because some currency traders believe the Conservatives would handle the UK economy better than Labour.

On the oil markets, the price of Brent crude was down 0.4 per cent at $49.25 a barrel, with traders becoming increasingly concerned that Opec’s efforts to cut supply will be harmed by an ongoing stand-off in the Middle East.

In UK stocks, Royal Bank of Scotland took a hit after shareholders who brought a multimillion-pound High Court action against the bank decided to settle their claim.

The biggest risers on the FTSE 100 Index included Randgold Resources, up 200p to 7,700p, Anglo American, up 19p to 1,045p, and Reckitt Benckiser, up 121p to 8,108p. The biggest fallers included Convatec Group, down 13.6p to 330.4p, Burberry, down 67p to 1,743p, andmerlin Entertainments,down16pto508p. The Mexicobased blue-chip miner benefited after gold hit its highest levels this year, partly on the back of political tension in the Middle East, The electricals retailer was the biggest faller on the FTSE 250, with one analyst saying investors “took fright” as it widened its loss to £12 million.