MARKET REPORT
THE pound climbed higher amid hopes of an imminent Brexit breakthrough yesterday, putting pressure on topflight stocks in London.
Negotiators told diplomats that a deal to solve the Irish border issue is now “very close”. The pound was up 0.66% to 1.310 US dollars and climbed 0.75% against the euro to 1.390. But the appreciation in sterling weighed on the FTSE 100, which finished the day 99.8 points, or 1.35%, lower at 7,318.54.
Investors in FTSE 100 companies had reason to celebrate yesterday as bowed to shareholders’ pressure and scrapped plans to move its headquarters from London to Rotterdam. Had the move gone ahead, Unilever’s shares were unlikely to have continued trading on the FTSE 100.
Shares in shopping centre landlord rocketed following confirmation that a consortium of investors is mounting a multi-billionpound takeover of the company.
John Whittaker’s Peel Group is leading a group consisting of Saudi Arabia’s Olayan and Canada’s Brookfield in a bid to take control of Intu.
Shares closed 40.45p, or 27.23%, higher at 189p.
But on the junior market, shares in retailer plummeted after it became the latest retailer to warn over profits as poor trading and the collapse of House of Fraser hit sales.
The group said full-year earnings are expected to come in at £11.5m, down from previous estimates of £15.5m. For the six months ended September 30, earnings will be “no less” than £5.5m, £1.5m lower than previous expectations.
Shares dropped 53.75p, or 36.38%, to close at 94p.
The biggest risers on the FTSE 100 were up 32.5p to 1,812p, up 5.7p to 334.1p, up 8.4p to 585.2p, and
up 9.2p to 748.4p. The biggest fallers on the FTSE 100 were down 47.6p to 827p, down 40.4p to 803.4p, down 74p to
down 1,669.2p and 157p to 3,744p.