Footsie gains as pound goes into reverse

Market report Perry Gourley

The FTSE 100 was boosted by an extended sterling sell-off linked to investor jitters around Brexit.

London’s blue-chip index rose 59.52 points to 7,453.48 points, supported by a weaker pound as many of its listed multinational firms tend to benefit when foreign currencies are stronger than the pound.

David Madden, a market analyst at CMC Markets, said while the sterling sell-off started on the back of a slew of Office for National Statistics data that revealed a mixed picture for the UK economy at the start of the fourth quarter, the current weakness was due to “traders’ nervousness surrounding Brexit”.

HSBC shares were up 18.5p to 751.7p after the US Department of Justice said it would ask a court to dismiss deferred criminal charges against the bank in light of its efforts to strengthen safeguards against money laundering. HSBC signed the agreement in order to avoid charges for allegedly laundering millions of dollars from the likes of Mexican drug rings and countries that are currently under US sanctions.

Hollywood Bowl shares jumped 13p to 203p as the ten-pin bowling operator reported a sharp rise in full-year pre-tax profit from £2.6 million to £21.1m on the back of growing sales and new site openings. The figures were also flattered by the absence of large exceptional items, which dragged down its performance last year.

The biggest risers on the FTSE 100 were WPP, up 35p to 1,376p, HSBC Holdings, up 18.5p to 751.7p, BHP Billiton, up 30.5p to 1,372p, and Antofagasta, up 20p to 913.5p. The investment firm said portfolio company Portr has partnered with American Airlines to allow check-in of luggage for London flights. Shares fell after the firm said it would take a £2m restructuring charge in its digital printing business as it closes some retail outlets.