Energy firms fall after price cap reignited

Market report Perry Gourley

Shares in utility stocks took a late hammering after Prime Minister Theresa May reignited her plans to enforce a price cap on energy bills.

May sent Scottish Gas owner Centrica and Perth-based SSE into free fall after pledging to fix the “broken energy market” as part of her Manchester conference speech.

The FTSE 100 index closed down 0.53 at 7,467.58, with Centrica and SSE dropping 11.6p to 179.3p and 45p to 1,367p respectively.

On the currency markets, the pound regained some lost ground as traders took some encouragement from an economic update on Britain’s powerhouse services industry.

The pound was up 0.2 per cent against the US dollar at $1.327 following the report that services sector growth bounced back from an 11-month low in September.

Supermarket giant Tesco was sitting among the biggest blue-chip fallers despite boss Dave Lewis unveiling the first dividend payout for three years following a surge in half-year profits and sales.

The group posted a better-than-expected 27 per cent rise in group underlying earnings but shares in Tesco were down 6.1p to 183.9p, with Sainsbury’s also dropping 5.9p to 241.6p and Morrisons down 4.7p to 231.9p.

Away from the top tier, Topps Tiles came under pressure after the firm reported a slump in full-year sales and warned over profits.

The group expects revenue for the 52 weeks to 30 September to fall after like-for-like sales declined 2.9 per cent over the year.

Shares were down more than 2 per cent, or 1.8p to 73p. Shares in the X-ray screening technology firm were in demand from investors after it revealed positive news on the timing of a multi-unit order. The manufacturing services group warned that its full year results will be “materially below” expectations blamed on contract delays.