LONDON MARKETS: FTSE 100 Slides, But Hangs Onto Monthly Gains
30 April 2016 - 12:04AM
Dow Jones News
By Carla Mozee, MarketWatch
Shire surges; IAG dampens growth plans
U.K. stocks dropped Friday, driving toward a weekly loss, with
shares of British Airways's parent under pressure and investors
still assessing the impact of central bank inaction.
The FTSE 100 fell 0.9% to 6,267.96, with only the basic
materials sector moving higher. Among the index's few advancers,
Shire PLC (SHPG) (SHPG) shot up 4% as the drugmaker's quarterly
revenue and earnings exceeded expectations
(http://www.marketwatch.com/story/shire-earnings-and-revenue-climb-in-first-quarter-2016-04-29).
The blue-chips index on Thursday ended with a minor gain after
being rattled by an unexpected decision by the Bank of Japan not to
launch new stimulus
(http://www.marketwatch.com/story/bank-of-japan-makes-you-feel-sorry-for-impotent-central-bankers-2016-04-28).
The FTSE 100 was looking at a weekly decline of 0.7%, but
remained on track for a 1.4% rise for April.
"It's as good as certain that the FTSE 100 will post its third
successive monthly gain tonight, but if there's to be any hope of
sustaining this trend, then the markets will be looking for central
bankers to maintain that accommodative stance," said Trustnet
Direct market analyst Tony Cross in a note.
Movers: Weighing on the benchmark was International Consolidated
Airlines Group SA (IAG.LN). Shares lost 5.4%, with their worst
session since mid-February coming after the parent of British
Airways cut its growth plans
(http://www.marketwatch.com/story/iag-cuts-growth-plans-after-brussels-attacks-2016-04-29)
in the wake of the Brussels terror attacks in March.
"We believe the scope for positive revisions to fiscal year
guidance has been reduced. Given the apparent downside risk from
premium traffic softness and a more protracted recovery from the
Brussels attacks than expected, we would not be surprised to see
consensus slip," said Liberum analyst Gerald Khoo in a Friday
note.
Royal Bank of Scotland's (RBS.LN) first-quarter net loss nearly
doubled to GBP968 million ($1.41 million)
(http://www.marketwatch.com/story/rbs-loss-nearly-doubles-on-12-billion-payment-2016-04-29)
on restructuring charges and a one-off GBP1.2 billion payment to
the U.K. government. Shares were down 4.2%.
Also among the few advancers, shares of telecom giant BT Group
PLC (BT.A.LN) gained 1.5%.
AstraZeneca PLC (AZN.LN) picked up 0.7%. The drugmaker, which
posted a drop in quarterly profit
(http://www.marketwatch.com/story/astrazeneca-investment-eats-into-profit-2016-04-29-54855248),
said cost-cutting should result in $1.1 billion in net savings.
But mining shares gained as dollar-denominated metals prices
found support from a fall in the greenback . Randgold Resources PLC
(RRS.LN) was up 2.2% as gold prices pushed toward a 15-month high
(http://www.marketwatch.com/story/gold-heads-for-15-month-high-as-dollar-gets-crushed-2016-04-29).
Platinum producer Anglo American PLC (AAL.LN) jumped 3%, and
Glencore PLC (GLEN.LN) rose 4.5%.
Berkeley Holdings Group PLC (BKG.LN) was down 3.9%, adding to
Thursday's loss that followed ratings downgrade by Credit
Suisse.
See:Credit Suisse turns bearish on London housing market
(http://www.marketwatch.com/story/brexit-fears-turn-credit-suisse-bearish-on-london-housing-market-2016-04-28)
(END) Dow Jones Newswires
April 29, 2016 09:49 ET (13:49 GMT)
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