Summer lull in London shares after surprise rise in inflation
Reuters
Published Aug 19, 2020 08:26
Updated Aug 19, 2020 10:11
By Joice Alves
(Reuters) - London's FTSE 100 (FTSE) was largely unchanged in thin summer trading on Wednesday, hardly reacting to a surprise rise in domestic inflation last month and the British government's plan to ramp up COVID-19 testing.
Health minister Matt Hancock said Britain is planning to bring in population-wide mass testing for coronavirus to help control the pandemic, adding that the government is working with London's Heathrow Airport to shorten quarantine.
After starting the session in negative territory, the London blue chip index flattened at 0919 GMT, with shares in British Airways-owner IAG (L:ICAG) jumping 3.2% to the top of the index.
Shares of Primark-owner Associated British Foods (L:ABF) gained 1.2% as consumer price inflation jumped last month to its highest rate since March, with clothing stores refraining from their usual summer discounts after reopening from lockdowns.
"UK inflation came in quite a bit higher than expected in July," said James Smith, ING developed markets economist.
"A much less pronounced fall in clothing prices than we'd normally see at this time of year seemed to be the main culprit."
Meanwhile, in the groceries space, Morrison (L:MRW) shares gained 1.1% after it listed its products on Amazon (NASDAQ:AMZN) for same-day delivery. Shares in online grocer Ocado (L:OCDO) were up 1.5%, while market leader Tesco 's (L:TSCO) shares were down 0.5% on negative read-across.
Lower oil prices capped gains and dented trading in energy stocks, with BP Plc (L:BP) and Royal Dutch Shell Plc (L:RDSa) being among the biggest drags. [O/R]
Persimmon (L:PSN) shares dipped as the company said the chief executive officer of bus company National Express Group (L:NEX), Dean Finch, will take up the top job at the homebuilder earlier than envisaged.
The mid-cap FTSE 250 (FTMC) was down 0.2%, with precious metals miner Hochschild Mining Plc (L:HOCM) slumping 8.7% as it posted a lower revenue for the first half of the year.
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Written By: Reuters
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