FTSE holds steady

AFP

AFP

Published Jun 2, 2015

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London - Britain's top share index stayed near break even on Tuesday, supported by strong gains in plumbing supplies group Wolseley after its revenues rose, although a drop in tobacco stocks weighed on the market.

Wolseley was the biggest FTSE 100 gainer, rising 3 percent after posting a 12.4-percent rise in quarterly revenue.

“We are pleased to see the continuation of strong revenue growth in like-for-like trends,” Guardian Stockbrokers' director of trading, Atif Latif, said.

“Overall we continue to remain bullish on the outlook given the margins trend continuing to remain resilient.”

On the downside, shares in British American Tobacco fell 2 percent, making it the worst-performing FTSE 100 stock.

A BAT subsidiary was among three tobacco companies that said on Monday they would appeal a Canadian court ruling awarding more than C$15 billion ($12 billion) in damages to Quebec smokers in two related class action cases.

Sector peer Imperial Tobacco fell 1.1 percent, with traders citing readacross from the Canadian ruling. The two stocks trimmed more than 6 points off the FTSE 100.

The index was down 1.58 points, flat in percentage terms, at 6,952 points in early trading after falling 0.4 percent in the previous session. It is up 5.8 percent this year, but has traded in a tight, 350-point range since the beginning of February.

Traders said that persistent uncertainty about the situation in cash-strapped Greece was worrying investors.

The heads of Germany, France and Greece's international creditor institutions agreed late on Monday to work with “real intensity” in the coming days as they try to clinch a deal in debt negotiations with Athens.

“Europe is still a big unknown. It's keeping the markets on edge, and we're playing a range, because no-one wants to commit their money long term when no one knows what the outcome over Greece is,” ETX Capital sales trader, Mark Priest, said.

However, Priest said that Britain's economic recovery should be somewhat insulated from concerns over the euro zone, with positive earnings news helping to support the market.

“The UK economy is still reasonably strong, however, and with some good numbers today, hopefully we will push back up above 7,000 before long,” he said.

Reuters

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