Lacklustre morning session on FTSE
Supermarket group Morrisons set the tone for another lacklustre session on the FTSE today after warning that annual profits would be lower than expected.
Morrisons lost nearly 6% of its value and compounded losses seen elsewhere following a surge in oil prices to their highest ever level.
The FTSE 100 Index stood 7 points lower at 4930.6 by mid-morning as investors took their cue from heavy falls by New York’s Dow Jones Industrial Average last night.
The cost of a barrel of US light crude rose further above the €56 mark today as yesterday’s announcement by oil cartel Opec of a 2% increase in output was seen as largely inconsequential.
On a busy day for corporate news in London, Morrisons was the heaviest faller, down 12p to 200p. It warned annual profits before tax and one-off items would now be in the range of £320m (€460m) and £330m (€474.8m) – about £30m (€43.2m) to £40m (€57.5m) lower than analysts had expected.
Steel group Corus was also in the red after reporting its first annual profits but warning that trading conditions were set to become more uncertain. The stock slipped 1.25p to 56.25p.
The cost of oil buoyed BP, up 3p higher to 563.5p, but rival Shell fell 2.75p to 486p.
Retailers were doing their best to prop up the market. B&Q owner Kingfisher advanced 3.25p to 293.75p after reporting a 17.5% rise in pre-tax profits to £670.9m (€965m).
Elsewhere, fashion chain Ted Baker was in good form after posting a 21% hike in annual profits and saying demand for its menswear ranges contributed to a strong start to its new financial year. The stock cheered 12.5p to 519p.
But department store group House of Fraser was heading in the opposite direction, 1.5p lower at 105.25p after higher profits were overshadowed by a sluggish start to the new financial year.
