logo-loader

FTSE 100 shrugs off deflation data; shares climb on ECB comments

Published: 17:33 19 May 2015 BST

london_350_555b67ac91b8b

London’s FTSE 100 held onto gains on Tuesday despite news that UK inflation fell into negative territory for the first time since 1960.

The blue chip benchmark gauge finished the day 26 points higher at 6,995, even after the deflationary data from the Office for National Statistics.

Shares were helped by suggestions that European Central Bank will speed up its bond buying programme this month and in June.

News of the potential fast money printing sent France’s CAC 40 index 100 points higher at the end of Tuesday’s session while Germany’s DAX soared 250 points, or 2.2% higher, to close at 11,852.

In London, bottler Coca-Cola HBC (LON:CCH) was the top FTSE 100 riser of the day, up 4.3%, after analysts at Barclays upgraded their target price on the shares to 1220p from 1175p. 

Land Securities Group (LON:LAND) finished 4% higher as the largest real estate investment trust in the UK said full-year profit rose, boosted by an increase in rental income. 

Shares in shopping centre firm Intu Properties (LON:INTU) shot up 3% to 354p on the back of the numbers, while property investment firm Hammerson (LON:HMSO) finished the day 2% higher.

Among financial stocks, Old Mutual (LON:OML) rose 2.7% or 6.5p to 236p with Prudential (LON:PRU) and Standard Life also making gains.

One of the biggest losers on the FTSE 100 was Vodafone (LON:VOD) who, despite announcing its first rise in quarterly sales in almost three years, has seen over £2bn of value wiped off its market cap today.

Joshua Mahony, analyst at IG Group, said an increase to dividend payments and revenues was clearly not enough for the stock price to continue its effervescent rise seen in recent weeks.

“Today's technical breakout looks like the beginning of a longer downtrend in Vodafone,” Mahony reckons.

Among the mid-caps, shares in distribution company DCC Group (LON:DCC) finished 13% higher, adding 454p to 4844p.

The firm struck a deal to acquire French liquefied petroleum gas company Butagaz SAS from Royal Dutch Shell (LON:RDSB)

It also posted a rise in pre-tax profit for the year to the end of March and predicted strong earnings growth in the current year.

Storage specialist Big Yellow Group (LON:BYG) also made gains, with shares up 7% after it reported a rise in annual revenue and profit.

In the AIM world, Plus 500 shares (LON:PLUS) fell again after yesterday’s news that it had suspended some of its UK client accounts over money laundering fears. 

It was the first day of trading for Stride Gaming (LON:STR).

The bingo operator chaired by former Sportingbet boss Nigel Payne had a good debut, rising from its placing price of 135p to 171p at the close. 

Proximity marketing specialist Proxama (LON:PROX)  announced its second contract win in as many days, this time with outdoor advertising firm Exterion Media. Shares ended the session 19% higher at 2p.

Elsewhere, a positive assessment of the breakthrough Rawicz project, in Poland, has delivered San Leon Energy (LON:SLE) its first bookable reserves. Shares closed at 1.2p on Tuesday, a 14% gain.

 

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

12 minutes ago