Downbeat news on Rentokil, BA, holds back FTSE
Downbeat broker notes on two of London’s top companies left the FTSE 100 Index threatening to fall below the key 5300 mark today.
Pest control group Rentokil Initial lost around 2% of its market value, off 3.5p to 163p, after one analyst said its interim results this week were unlikely to show any trading improvement.
Both this and a negative note on British Airways contributed to the Footsie weakening 15.7 points to 5302.7 by mid-morning.
British Airways was second on the blue-chip fallers board after Rentokil, as broker Citigroup cut its earnings forecast as a result of this month’s dispute at Heathrow Airport. The carrier lost 4.5p to 285.25p.
Oil heavyweights BP and Royal Dutch Shell added to the lacklustre tone. The pair – which together make up around a fifth of the Footsie – lost 4p and 6p to 625.5p and 1853p respectively.
In the lower tiers, there was bad news from retailer Whittards of Chelsea after it warned that the impact of the London bombings could affect trading at some of its stores for months to come. Shares slumped 13%, off 13.5p to 91.5p.
Entertainment group Sanctuary dealt saw 38% wiped off its market value after it issued a fresh profits warning and said an earlier takeover approach was unlikely to lead to an offer close to its current value. Shares fell 6.5p to 10.75p.
In contrast, Persimmon was trying to cheer the mood as it marked a positive start to the housebuilding sector’s reporting season. Shares rose more than 2% or 18.5p to 818p as it unveiled a 7% rise in first half profits to a record £235 million.
A string of Persimmon’s second tier rivals followed it higher, with Bovis Homes up 10p at 617p and George Wimpey ahead 4p to 404.5p.
