An ongoing slide in GSK and its consumer pharmaceutical spin out firm Haleon’s shares dragged London’s FTSE 100 lower today.
The capital’s premier index fell 0.55 per cent lower to 7,465.91 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dipped 0.26 per cent to 20,245.43 points.
Aquafresh maker Haleon has been on a downward trajectory since it started trading on the FTSE 100 last month, indicating investors have not taken kindly to pharma giant GSK’s decision to break out its arm which makes mostly household hygiene products.
Shareholders are also fretting over a possible huge legal bill for GSK.
Its shares lost over 10 per cent, sending it to the bottom of the FTSE 100. Haleon followed, shedding 4.9 per cent.
Market movements have been shallow over the last week, mainly driven by City traders getting away from their desks and heading on holiday.
August is typically a quiet month for markets as the news flow and results dry up.
Earlier this week, Wall Street bounced after new figures revealed US inflation is cooling much quicker than expected. The tech-heavy Nasdaq escaped the longest bear market since 2008.
Prices rose 8.5 per cent annually in the world’s largest economy last month, down from a 40-year high of 9.1 per cent and lower than analysts’ expectations for a 8.7 per cent rise.
Those figures curbed investor bets on the Federal Reserve hiking interest by a huge one percentage point at its next meeting on 21 September.