MARKET REPORT

THE FTSE 100 fell into the red yesterday, weighed down by Kingfisher shares which tumbled to three-year lows following a weak sales report from B&Q.

London’s blue chip index ended the day down 0.61% or 45.16 points at 7,387.87, with Kingfisher emerging as its worst performing stock down 12.6p at 294.8p.

Its shares temporarily hit multi-year lows in afternoon trading as investors reacted to a 4.7% drop in like-for-like second quarter sales at its DIY chain B&Q, which dragged down Kingfisher’s own revenue. The results were blamed on tough comparatives and a strong first quarter in 2017, when better weather meant shoppers bought seasonal products.

Across Europe, the French Cac 40 and German Dax both ended the day in the red, down 0.57% and 0.49%, respectively.

In currency markets the pound was mixed, trading flat against the US dollar at 1.288 and up 0.2% versus the euro at 1.173.

Investors were digesting UK retail figures for July, which outstripped expectation as inflation-squeezed shoppers spent more money on food. The Office for National Statistics (ONS) said July sales rose by 0.3% in terms of quantity, in line with the month before and ahead of economists’ predictions of 0.2%.

Brent crude prices were up 0.7% at $50.77 per barrel, having recovered from a sell-off after Energy Information Administration (EIA) data released a day earlier showed a further rise in US oil production and an increase in gas stockpiles.

In UK stocks, Hikma Pharmaceuticals tumbled 139p to 1,190p, becoming the worst performing stock on the FTSE 250 after lowering its full-year revenue outlook.

The drugs giant said annual group revenue would come in at $2bn (£1.6bn) after generics business was confronted by “tough market conditions”.

Rank Group shares fell 14.6p to 225p as the Mecca Bingo operator reported a 7% drop in full-year pre-tax profit to £79.7 million, citing “challenging” UK conditions.

The biggest risers on the FTSE 100 were Fresnillo up 58p at 1,566p, Johnson Matthey up 64p at 2,818p, Randgold Resources up 130p at 7,405p, and London Stock Exchange Group up 35p at 3,950p.

The biggest fallers on the FTSE 100 were Kingfisher down 12.6p at 294.8p, Standard Chartered down 21.1p at 755p, Admiral Group down 47p at 2,000p, and Royal Bank of Scotland down 5.8p at 258.1p.