London Report: FTSE slips from five-day rise as ex-div firms fall
BRITAIN’S top share index yesterday retreated from a three-week high, halting a five-day winning streak, with companies trading without the attraction of their latest dividend putting pressure on the broader market.
The benchmark index finished down 0.35 per cent, or 23.83 points, at 6,755.48 points.
Despite markets pausing for breath after recent rises, Standard Chartered shook off news that it would pay a $300m penalty to US authorities for lapses in its anti-money laundering procedures.
Its shares ended 0.29 per cent higher at 1,221p.
A number of UK-listed companies going ex-dividend also helped weaken the market.
In the FTSE 100, these included British American Tobacco, down 1.79 per cent to 3,517.50p, Mondi, 1.86 per cent lower at 1,004p and Prudential, off 0.38 per cent at 1,425.50p.
In the mid-caps, housebuilder Berkeley fell 6.08 per cent to 2,426p.
The building sector was also under pressure thanks to worries about an earlier than expected UK rate rise, following the Bank minutes.
Barratt Developments dropped 2.44 per cent to 359.60p while Persimmon fell two per cent to 1,323p.
Balfour Beatty dropped 6.68 per cent to 238.9p after it rejected the latest offer from predator Carillion, 1.99 per cent lower at 330p. Carillion has withdrawn its proposal.
After Tuesday’s disappointment from BHP Billiton, which unveiled a demerger but failed to announce a cash return to shareholders, commodity trader and miner Glencore pleased investors with a $1bn share buyback.
The company said it would launch a buyback programme over the next six months, as it beat forecasts with an eight per cent rise in first half profits to $6.5bn. Its shares added 0.43 per cent to 360.50p.
Utilities were in demand. SSE was up 0.80 per cent at 1,517p, British Gas owner Centrica climbed 0.57 per cent to 316.70p and United Utilities rose 11.6 per cent to 890p.
British Airways owner International Airlines Group, up 0.76 per cent to 344.20p, and easyJet, 0.3 per cent higher at 1,339p, shook off worries about possible disruption by activity at Iceland’s largest volcano Bardarbunga.