Hit to betting stocks sees Footsie falter

Market report Perry Gourley

The London market drifted lower after betting stocks tumbled following reports that the UK Government will slash the maximum stake on fixed-odds betting terminals (FOBTS).

The FTSE 100 Index was down 15.35 points to 7,715.44, with Paddy Power Betfair down more than 2 per cent, or 175p to 8,275p, while its second-tier rivals Ladbrokes Coral and William Hill dropped 14.5p to 168p and 39.1p to 297.2p respectively.

Foxy Bingo owner GVC, which has agreed a takeover by Ladbrokes Coral, also sank 11.5p to 926.5p on the FTSE 250.

On the currency markets, the pound was edging closer to the $1.40 US dollar mark, rising 0.4 per cent to 1.393 as the greenback weakened.

David Madden, market analyst at CMC Markets, said: “Sterling has been climbing lately as the economic indicators from the UK have been broadly positive, and the weakness in the greenback has accelerated the move.”

Barclays was the biggest riser on the top tier following reports that US hedge fund Tiger Global had invested $1 billion in the lender. Shares in the banking giant were up more than 4 per cent, or 8.7p to 209.2p.

Away from the top tier, electricals retailer Dixons Carphone managed to win over investors despite narrowing its profit forecasts. Shares climbed nearly 7 per cent, or 12.9p to 200.8p, as the company reported a 6 per cent rise in likefor-like group revenues for the ten weeks to 6 January, propped up by double digit like-forlike growth in its Nordic and Greek division. The biggest risers on the FTSE 100 index included NMC Health, up 80p to 3,360p. Shares in the online grocer soared after announcing its second international partnership agreement in three months.