Just Eat fears see investors lose appetite

Market report Perry Gourley

The FTSE 100 ended the day flat, having been dragged down by Just Eat shares on competition fears from Deliveroo.

The index closing lower by 0.1 point at 7,703.71 points after a near 5 per cent, or 40p, drop in Just Eat’s stock price to 810p, making it the worst blue-chip performer.

It follows an announcement by rival Deliveroo that restaurants will now have the choice of fulfilling orders using their own drivers. Eateries previously had to use Deliveroo’s fleet.

David Madden, a market analyst at CMC Markets said: “Deliveroo hopes to sign up 5,000 new eateries, and it will offer assistance to restaurants that have their own delivery staff, but need additional drivers during busy periods.

“The aggressive expansion plans have eroded investor confidence in Just Eat, as dealers feel it will dent profit.”

WPP dropped 11.5p to 1,235p as the advertising giant faced a bruising AGM where nearly onethird of shareholders rejected a bumper payout for outgoing chief executive Sir Martin Sorrell. Bosses also faced a flood of questions surrounding his controversial departure and WPP’S trajectory as it searches for his replacement.

Sainsbury shares rose 1.6p to 308.2p despite news the grocery giant’s chief executive will be hauled before MPS to explain how the supermarket’s proposed £12 billion merger with Asda will affect farmers, suppliers and consumers.

Shares in pub group JD Wetherspoon fell 10p to 1,260p amid news that it will replace champagne and wheat beers produced in France and Germany with more drinks from the UK. The drug company was in demand after it said a study for the treatment of Irritable Bowel Syndrome had been given the green light. The distribution company saw its shares hammered after it warned over full-year profit forecasts and saw its chief executive leave immediately.