UK stocks zigzagged their way to an unchanged close on Friday, but one which left them 200 points higher than where they began the week.
The blue-chip FTSE 100 index was unchanged at 6,909 as markets lost steam following a two-day rally since the US Federal Reserve opted to leave interest rates on hold.
Mining firm Polymetal (LON:POLY) was the biggest FTSE 100 faller after shareholders sold off a 6% stake. Its shares ended 7.4% lower at 981p.
The mid-cap FTSE 250 index shed 0.4% to 17,923 – but at least that was 70 points higher than where it began the week.
FTSE 250 index constituent Sports Direct (LON:SPD) shares were the top gainer on Friday, rising 5.5% to 302.77p after news that chief executive Dave Forsey had resigned, to be replaced by founder Mike Ashley. The company had been under pressure to make changes after criticism of its working practices.
The biggest FTSE 250 faller was Indivior plc (LON:INDV) whose shares fell by 3.9% to 313.5p. Indivior updated the market on the Federal Trade Commission investigation and class action litigation being filed against it on Friday. That litigation has swelled to 35 US states and the District of Columbia filing a civil complaint complaint alleging violations of state and federal antitrust and consumer protection laws on Thursday.
On 29 July, the company indicated that the FTC was seeking court action over the drug Suboxone, having investigated whether Indivior and its predecessor, Reckitt Benckiser US, had filed a citizen petition with the Food and Drug Administration and negotiated with competing manufacturers to maintain its monopoly.
The FTSE AIM 100 Index added 0.3% to 3,895 while the FTSE AIM All-Share Index was up 0.3% at 816.
Across London stocks, 29% gained, 35% lost and 36% were unchanged.
Aurum Mining (LON:AUR) was the biggest gainer of 48% to 1.85p two days after saying it would raise £1.2mln and the chairman would participate.
Gcm Resources (LON:GCM) shares were the biggest decliner of 25% to 11.5p after saying it heard nothing from Bangladeshi authorities over Phulbari Coal Pit.
The company said: “GCM Resources plc has noted the press speculation in the Bangladesh media in relation to the Barapukuria coal mine in Bangladesh, a mine site which is unrelated to the company, and comments attributed to the Energy and Mineral Resources division of the Government of Bangladesh.
“The reports suggest that the Energy and Mineral Resources Division of the Government of Bangladesh has decided not to proceed with open pit mining at the Barapukuria coal mine site. One report also insinuates that the Government's decision also affects the company's Phulbari Coal Project.
“The Company, through its subsidiaries, has a legally enforceable contract with the Government of Bangladesh which gives it the right to explore, develop and mine in respect to the licence areas. GCM is awaiting Government approval of the Scheme of Development to proceed with mine development.”
China Resources Gas (HKG:1193), part of an expansive state-owned Chinese conglomerate, has entered the race for the gas distribution arm of the UK’s National Grid (LON:NG., partnering with a consortium that includes a large Australian fund manager and Singapore’s electricity distributor.
The group is the latest to join the auction for the largest sale of a UK infrastructure asset in recent years, with National Grid seeking to sell a 51% stake in a deal analysts expect will value the business at £11bn including debt.
National Grid shares ended down 0.5% at 1074.87p.
Midsession
FTSE 100 is down around 13 points, or 2%, to 6,897 as the market gets over the Central Bank excitement, which caused shares here and across the Atlantic to rise.
Polymetal International (LON:POLY) is still the biggest loser on the day down over 7% to 978.5p as two investors said they would sell a total of 26mln shares in the miner.
Elsewhere, Seeing Machines Ltd (LON:SEE), which has developed the driver monitoring technology, was surging 25% to 5.63p after yesterday's hardchip news.
Netscientific PLC (LON:NSCI) was a notable gainer, adding over 11% to 84p as its portfolio company Glycotest has been granted a Japanese patent for its core technology for the early detection of life threatening liver disease.
Glycotest – a liver disease diagnostics company – now holds a total of six patents in Australia, the US and Japan.
The patents cover the use of over 50 unique glycoprotein biomarkers which can be used for the diagnosis of liver cancer and other liver diseases.
Biotech group Summit Corp (LON:SUMM) added over 15% to stand at 130p, although there was no news.
Obtala Ltd (LON:OBT) added over 6% to 13p as it said it had sold its non-core retail activities in Lesotho for US$100 in cash.
LUNCH
Britain's blue chips were still down at lunch but making some headway.
The FTSE 100 is down around ten, or 0.15%, at the time of writing at 6,901 after big gains on Thursday.
The biggest laggard is miner Polymetal International (LON:POLY), which crashed 8% lower at 974p as two investors said they would sell a total of 26mln shares in the miner.
FTSE 100 starts lower as Fed excitement eases
UK shares, big and small, had the Friday blues, and retreated from highs inspired by Central Bank moves.
FTSE 100 was down almost 19 at the time of writing, at 6,882, while FTSE AIM 100 is also trailing by 0.18%. The FTSE AIM All share lost 0.07% to 813.320.
The biggest big cap loser was Polymetal International, down 9.35% to 960.50, while housebuilders were on the up, with Persimmon (LON:PSON), up 2.89% to 1,849p.
Jasper Lawler, at CMC Markets, said: "The immediate reaction across markets to the Fed’s decision to keep rates on hold again has been that of lower treasury yields, higher stock prices and a weaker dollar.
"This reflects an understanding that the Fed isn’t about to raise rates for at least three months. It could easily be longer if US economic data remains sluggish."
Yesterday, in the US jobless claims dropped to a two month low, but home sales saw a surprise decline. Today, US manufacturing data will be released.
In small cap world, Netscientific was a notable gainer, adding over 10% to 83.5p as its portfolio company Glycotest has been granted a Japanese patent for its core technology for the early detection of life threatening liver disease.
Glycotest – a liver disease diagnostics company – now holds a total of six patents in Australia, the US and Japan.
The patents cover the use of over 50 unique glycoprotein biomarkers which can be used for the diagnosis of liver cancer and other liver diseases.
Seeing Machines Ltd (LON:SEE) was also up again, after gaining yesterday on news of the launch of the hardware chip.
Shares added 8.33% to stand at 4.898p.
On the losing front, Kibo Mining PLC (LON:KIBO) lost 8.45% to stand at 8.13p after it published details of the listing of its Tanzanian gold interests.
A new company, Katoro, will comprise of Kibo’s Imweru and Lubando projects but not Lake Victoria Gold’s Imwelo deposit as was originally intended.
A merger between Imweru and Imwelo did not complete due to LVG’s failure to meet some of the conditions of the agreement said Kibo.
Katoro will reverse into London-listed shell Opera Investments, which will move from the main market to AIM and re-finance through a £1.2mln fund raising at 6p per share.
Opening snapshot at 8.30am
The FTSE opened 16 points lower at 6,893 on Friday.
The morning’s top winner was Persimmon plc (LON:PSN), which added 3.5% to take it to 1,857p.
Precious metals miner Polymetal International PLC (LON:POLY), was the top loser, falling more than 8% to 972p.
News
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FTSE 100 is set to open lower after a sharp rise yesterday as the party on the Fed's decision to leave rates on hold, starts to wears off.
Asian shares are lower overnight, while in the US, Wall Street shares continued the upward trend.
Britain's blue chip index closed up on Thursday 1.12% up, or 76 points, at 6,911- the best closing level since August 15, as big cap miners bolstered the index, after commodity prices rose on a weak dollar. The pound also broker through the US$1.30 mark after being pushed lower since the Brexit vote.
Spreadbetters at IG Index call the Footsie to open 8.5 points lower on Friday.
In the US, the Dow Jones Industrial Index added 0.54% to 18,392, while the S&P500 gained 0.65% to 2,177. The tech heavy Nasdaq index added 0.84% to stand at 5,339.
In Asia, the Nikkei 225 in Japan is down 0.2% to 16,775, while the Chinese Shanghia Composite Index is 0.09% lower, at 3,040.
It comes after two straight days of market gains following the rate decisions by the Federal Reserve and the Bank of Japan.
The crude price slipped overnight, with US benchmark West Texas Intermediate, down 1.14% at US$45.79. Brent crude however is up over 2% to US$27.67.
Gold is up 0.98% to US$1,339 an ounce.
Not much on the UK corporate radar today, but veterinary services provider CVS Group plc (LON:CVSG) is due to report full year numbers.
In a pre-close update in July, it revealed it expected adjusted pre-tax earnings for the year to the end of June to be modestly ahead of market expectations
City Headlines
BT in £60m YouView takeover talks with BBC- The Telegraph
Britain has the edge over EU nations in trade talks, says Civitas - The Telegraph
'State-Sponsored' actor stole data from 500m Yahoo users - FT
'Airbnb raises at least $500m in new funding at $30bn valuation'- The Guardian
'Lloyds (out) of London as insurer mulls Capital flight' - The Times