FTSE rises to record close after Article 50 trigger date set
Reuters
Published Mar 20, 2017 17:08
FTSE rises to record close after Article 50 trigger date set
By Kit Rees and Helen Reid
LONDON (Reuters) - Britain's top share index inched higher to set a record closing level on Monday, as falling energy stocks and banks were outweighed by rising consumer staples stocks.
The blue chip FTSE 100 (FTSE) index was up 0.1 percent, slipping from the record 7,447.00 points reached in the previous session, but reaching a record close of 7,429.45 points, as investors digested the government's setting the date to open formal negotiations to exit the European Union.
Prime Minister Theresa May confirmed on Tuesday that she would trigger Article 50 on March 29, beginning the process of leaving the EU.
Defensive, dividend-yielding stocks such as consumer staples were in favour in a risk-off trade, with Reckitt Benckiser (L:RB) and Sainsbury (L:SBRY) among top gainers.
Cyclicals stocks, on the other hand, slipped. Energy stocks (FTNMX0530) were the biggest drag on the large caps, with BP (L:BP) falling 0.4 percent and Royal Dutch Shell (L:RDSa) down 0.6 percent as oil prices came under pressure from rising U.S. drilling and ongoing high supplies from OPEC. [O/L]
British banks (FTNMX8350) were led lower by Royal Bank of Scotland (L:RBS), which fell 1.6 percent.
"The financial stocks have all been on a pretty good push over recent sessions, so we are starting to see some short-term profit-taking come in," said Dafydd Davies, partner at Charles Hanover Investments.
"We could start to see, as Brexit uncertainty builds, a bit more de-risking on the financials that are particularly exposed to the direct state of affairs in question.”
Last week, British banking shares came under pressure on the prospect of a new Scottish independence referendum and the invoking of Article 50.
Associated British Foods (L:ABF) was a top FTSE gainer, up 1.6 percent after Goldman Sachs (NYSE:GS) upgraded the Primark owner to "buy" from "neutral".
British mid-cap stocks (FTMC) outperformed their blue-chip peers to set a new record high, closing up 0.4 percent.
Tullow Oil (L:TLW) was among top fallers, down 2.4 percent. One trader cited a Bank of America (NYSE:BAC) Merrill Lynch downgrade to 'neutral' as weighing on the stock.
On the small caps, drug developer Circassia (L:CIRCI) was the top gainer, rising 13 percent to its best-ever daily gain, after Stifel raised its recommendation on the stock to 'buy' from 'hold', after Friday's announcement of a deal to acquire U.S. commercial rights for two AstraZeneca (L:AZN) drugs.
Get The App
The stock was through more than eight days' worth average 30-day volume. Up to Friday's close it had fallen 65 percent in the last 12 months, having been hit by the late-stage failure of its experimental cat allergy treatment in June last year.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.