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FTSE 100 closes lower; London hit by terror attack

Last updated: 18:03 22 Mar 2017 GMT, First published: 06:49 22 Mar 2017 GMT

trump at a mic
  • FTSE 100 closes lower 

  • US shares mixed

  • Westminster in lockdown after terror incident

  • Four reported dead  

 

FTSE 100 closed lower on Wednesday as London was sent into chaos after what police described as a "terrorist incident" hit the Houses of Parliament and surrounding area.

A woman has reportedly died and several injured after a car was seen crashing into people while a policeman was attacked by a knife in the Palace of Westminster. He is now believed to have died.

Details are still emerging of the incident, but the Metropolitan police urged people that its foremost aim was to keep London safe.

Prime Minister Theresa May was reportedly bundled out of the Commons by armed officers.

The UK index of leading shares finished down over 51 points at 7,327, while the FTSE 250 closed 155 down - as markets continued the losing streak seen on Tuesday.

Investors are mulling whether President Trump can deliver on some of his pro-growth policies touted during his election campaign.

Miners did well and topped the Footsie leader board, but retailer Kingfisher (LON:KGF) was the biggest laggard, shedding 5.09% to 328p.

Investors gave the group's five-year turnaround plan the thumbs down.

The DIY retailer – which also owns the Screwfix brand – saw adjusted pre-tax profits for the 12 months to 31 January 2017 come in 8% higher at £743mln, on adjusted sales of £11.2bn (2016: £10.3bn).

 

Airline stocks flew lower on potential route restrictions post-Brexit combined with a US and UK ban introduced new restrictions on electronic devices for certain flights

International Consolidated Airlines (LON:IAG), the owner of British Airways, lost 2.77% to finish at 545p.

2.15pm..London in doldrums as Trump dump continues

 

London was in the doldrums as the Trump Dump in the US continued for a second day.

While not as dramatic as Tuesday’s near 240 point fall, the Dow was off 44 points and the mood very unsettled on talk that the new US President’s market honeymoon might be over.

FTSE 100 shed 69 points to 7,309 with miners and dollar earners making up the bulk of the risers.

Fresnillo was 20p higher at 1,573p, Randgold rose 74p to 7,269p while AstraZeneca PLC (LON:AZN) gained 10p to 4,836p.

Kingfisher PLC propped up the index with a 5.4% dip to 327p.

Among teh small caps, Frontera Resources PLC (LON:FRR) was today’s top riser following an investor call last night.

Ahead of the conference, the Black Sea and US focused oil and gas group said there would be nothing new coming out of the conference.

The AIM-listed group has said recently though that its target is 2,200 barrels per day from pilot production to generate US$3mln per month in revenues and must have reinforced the message as the shares today climbed 47% to 0.352p.

Franchise Brands PLC (LON:FRAN) rose 16% to 93.2p as it advanced stage talks over a reverse takeover. There can be no certainty that a final binding agreement will be reached, it added.

 

11.15am ...FTSE 100 slumps as Kingfisher disappoints

Wall Street’s overnight wobble knocked the stuffing out of London with a downbeat trading update from DIY giant Kingfisher adding to the market’s unease.

FTSE 100 was 60 points lower at 7,319, with only five blue chips in blue numbers.

Gold miners were the best performers as investors dived for cover after the Dow Jones Industrial Average tumbled 238 points.

The metal is a traditional funk hole in times of stress and rose US$15 yesterday to around US$1,245.

Randgold Resources PLC (LON:RRS)  rose 60p to 7,255p while Fresnillo PLC rose 11p to 1,564p.

Kingfisher PLC was in need of some propping up as investors gave its five-year turnaround plan the thumbs down.

The DIY retailer – which also owns the Screwfix brand – saw adjusted pre-tax profits for the 12 months to 31 January 2017 come in 8% higher at £743mln, on adjusted sales of £11.2bn (2016: £10.3bn).

The results were the first published since chief executive Véronique Laury introduced the One Kingfisher strategy last year.

Laury was appointed at the end of 2014 to turn the group around, but the shares have gone nowhere and rumble of discontent are growing.

It was a cautious view on France that hit the shares, which were down 6.5% at 323.8p today.

Elsewhere, call centre security specialist Eckoh (LON:ECK) was an early riser, up 9% after it landed its biggest ever contract.

Australia-focused Falcon Oil & Gas (LON:FOG), building on a spectacular 380% run in the six weeks following speculation that the Australian government may lift its ban on shale/coal gas drilling.

Construction group VanElle Holdings PLC (LON:VANL) was a heavy faller as it warned it was still suffering from contract delays.

Van Elle specialises in the preparation stage and a number of rail contracts within its Specialist Piling division will be delayed beyond the end of the current financial year and, in a small number of cases, may be canned completely.

Shares fell 21% to 90p.

Asiamet Resources Limited (LON:ARS) rose 8% to 4.33p as it reported resource definition drilling program at the Beruang Kanan Main (BKM) copper deposit is expected to be completed in early April, with an updated resource estimate due shortly thereafter.

8.45am ...FTSE 100 hit by Trump wobble on Wall Street

The sell-off on Wall Street overnight hit the FTSE 100 – but not quite as hard as you’d imagine with the index of blue-chip shares down 52 points at 7,325.85.

“The driver for the sell-off is uncertainty about implementation of the US policies that have driven the optimism that fuelled the Trump reflation trade, ushering markets to recent highs,” said Mike van Dulken, analyst at Accendo Markets, seemingly speaking a different language to the rest of us.

“After two-months in office, markets want proof not just promises, fearful that the healthcare reform Trump is using to put his stamp on the presidency could delay the tax cuts and infrastructure spending markets desire so much more.”

In short, investors are panicking The Donald may be a lame duck president that doesn’t deliver long-awaited economic reforms.

A warning on the outlook for France rattled investors in B&Q owner Kingfisher (LON:KGF), which was marked down 3% early on.

Behind was a raft of miners as the sector sell-off continued. That said, gold digger Randgold Resources (LON:RRS) led the Footsie as the price of the yellow metal rose.

Call centre security specialist Eckoh (LON:ECK) was an early riser, up 9% after it landed its biggest ever contract.

Also up 9% was Australia-focused Falcon Oil & Gas (LON:FOG), building on a spectacular 380% run in the six weeks following the announcement of a massive gas discover in Northern Territory.

Proactive news headlines

Eckoh PLC (LON:ECK) has landed a US$3.7mln US secure payment contract – its largest ever. It takes the running total for new business this financial year to US$8mln.

Tanzania-focused gas investment firm Solo Oil PLC (LON:SOLO) has announced its move into helium with a deal worth up to £6.55mln. It is spending £2.55mln for a 10% stake in Helium One in a cash and shares transaction and has the option to double its holding for an extra £4mln.

Cello Group plc (LON:CLL), the pharmaceutical and consumer strategic marketing group, announced a solid set of results for 2017, with improvements in revenue and headline profit before tax, and an 18.9% hike in the dividend.

eg Solutions PLC (LON:EGS) saw its full-year underlying profits jump by over 50% driven by record revenues in the second-half thanks to multiple new contract wins across many sectors and territories.

Futura Medical PLC (LON:FUM) has signed a marketing and distribution deal in Portugal for its CSD500 condom, which allows the wearer to maintain a firmer erection. The company is partnering with F Lima, which distributes consumer brands to supermarkets and pharmacies.

Venn Life Sciences Holdings plc (LON:VENN) delivered strong revenue and order book growth in 2016 as it integrated Dutch drug consultancy Kinesis Pharma into the business. Revenue rose to €17.9mln in the year to 31 December 2016, from €11.5mln the previous year.

IGas Energy Plc (LON:IGAS) lands planning approval for a shale well site, for a single exploration well, in north Nottinghamshire.

Rose Petroleum PLC (LON:ROSE) has secured an extension with US authorities as it advances towards a seismic exploration programme later this year.

LGO Energy PLC (LON:LGO) revealed the first result from its new low-risk drill programme, adding 55 bopd of stable production (that's about 10% growth for the Goudron field presently).

Strategic Minerals plc (LON:SML) said drilling has kicked off at the Redmore tin and tungsten project in Cornwall. The company owns a 50% interest in the project, which holds an exploration licence and option over 23km sq in the Cornish tin, tungsten and copper mining district in the UK.

6.45am...US to drag the Footsie down 

US stocks had their worst day of the year yesterday – indeed, their worst since Trump's election victory – setting a bleak tone for London.

Spread betting quotes suggest the FTSE 100 will open some 47 points lower at around 7,331.

Stateside, banks led the retreat as investors banked profits; the lenders have been on a good run since Trump's election, but optimism over Trump's economic plans showed signs of unwinding.

The Dow tanked 237 points to 20,668, while the Nasdaq Composite lost 107 points to 5,793.

The benchmark S&P 500 declined the most in one session in five months, shedding 29 points at 2,344.

In Asia, traders' screens are also mostly red. The Nikkei 225 is 415 points in the hole at 19,041 in Tokyo, while in Hong Kong the Hang Seng index is 341 points weaker at 24,252.

On the home front, Kingfisher PLC's (LON:KGF) ambitious turnaround plan will be closely scrutinised when results are released in a few minutes' time.

The DIY retailer has completed the first year of its five-year restructuring under chief executive Véronique Laury’s One Kingfisher strategy.

Laury’s efforts to overhaul the business have included the closure of unprofitable shops, cuts to advertising spend, scrapping old product ranges and updating its technology.

The market is expecting profit before tax of £731mln on sales of £11.2bn. The divi is tipped to rise to 10.77p from 10.1p the previous year.

Around the markets

  • Sterling: US$1.2504, up 0.25 cents
  • Gilts – 10-year yield: 1.257%
  • Gold: US$1,247.70 an ounce, up US$1.20
  • Brent crude: US$50.64 a barrel, down 32 cents

Headlines

  • Russia reportedly amenable to extending OPEC-backed oil supply cuts – Financial Times
  • Endeavour Mining dumps £3 billion gold merger talks with Acacia – Daily Telegraph
  • Fears for Moorside as Toshiba ‘lining up’ $500 million bankruptcy backstop for Westinghouse nuclear arm – Daily Telegraph
  • Co-op sets deadline for bank bidders – The Times
  • Fiat is latest to face diesel cheat inquiry: - The Times
  • UN asks UK. government to pause Hinkley nuclear reactor development – The Independent
  • Emirates ‘has not been informed’ of Trump’s new in-flight restrictions – The Independent
  • Goldman Sachs to move hundreds of staff out of London due to Brexit – The Guardian
  • Coal in ‘free-fall’ as new power plants dive by two-thirds – The Guardian
  • Domino’s Boss made 5p off every pizza the firm sold last year - trebling his pay packet to £4.5 million – Daily Mail
  • Uber’s facing a fresh legal challenge - this time over VAT – City AM

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