LONDON MARKETS: FTSE 100 Fades, Pulling Back From Record Run Of Gains
January 11 2017 - 4:19AM
Dow Jones News
By Carla Mozee, MarketWatch
Sainsbury's stock rises after strong Argos Christmas sales
U.K. blue-chip stocks sagged Wednesday, faltering after a record
run of gains, even as financial results from J Sainsbury PLC helped
lift the supermarket chain's shares.
The FTSE 100 was lower by 0.2% at 7,262.01. Financial and
consumer stocks were higher, but utility, oil and gas, basic
material and health care sectors were struggling.
The index on Tuesday rose 0.5% to 7,275.47
(http://www.marketwatch.com/story/ftse-100-aims-for-9th-straight-record-as-pound-slump-continues-2017-01-10).
That was the 11th consecutive gain and a ninth straight record
close for the London benchmark. That marked its longest string of
record closes since FactSet began collecting data in 1986.
Stocks' run higher has been accompanied by persistent weakness
in the pound, as investors worried about the prospect of a "hard
Brexit," which would cut off U.K. businesses' access to the
European Union's single market. Sterling depreciation typically
boosts the earnings of U.K. exporters.
The pound on Wednesday was buying $1.2155, down from $1.2167
late Tuesday in New York.
Individual movers: Topping the benchmark was Sainsbury's
(SBRY.LN) , whose shares jumped 4.8%. The U.K.'s second-biggest
supermarket chain by market share said its total retail sales,
excluding fuel, were up 0.8% in the 15 weeks ended Jan. 7
(http://www.marketwatch.com/story/sainsburys-christmas-sales-rise-marginally-2017-01-11).
Excluding fuel, they rose by 0.1%.
"Whilst these Sainsbury numbers are not sufficient to shoot the
lights out, they are comfortably ahead of expectations. In
particular, the contribution from the online and convenience
channels is strong, whilst the integration of Argos is already
beginning to bear fruit," said Richard Hunter, head of research at
Wilson King Investment Management, in a note.
Sainsbury's bought Home Retail Group PLC, the parent of Argos,
last year. Same-store sales at the home and general retailer rose
4% in the Christmas-related quarter.
Other supermarket shares traded mixed. Wm Morrison Supermarkets
PLC (MRW.LN) rose 1.6%, while Tesco PLC (TSCO.LN) shed 0.4%.
Homebuilder Taylor Wimpey PLC (TW.LN) said it expects to report
2016 profit at the upper end of market consensus
(http://www.marketwatch.com/story/taylor-wimpey-upbeat-on-profit-reaffirms-dividend-2017-01-11)
and reaffirmed its medium-term dividend payout target. But shares
turned lower, trading down 0.1%.
Economic docket: At 9:30 a.m. London time, or 4:30 a.m. Eastern
Time, November readings on U.K. industrial production and
manufacturing production are due from the Office for National
Statistics.
Bank of England Gov. Mark Carney is slated to appear at a
Treasury committee hearing to discuss the bank's financial
stability report at 2:15 p.m. London time, or 9:15 a.m. Eastern
Time.
(END) Dow Jones Newswires
January 11, 2017 04:04 ET (09:04 GMT)
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