Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a1073671

Soaring pound downs FTSE on Brexit hopes

Sterling rally gathers strength on hopes of progress in Brexit negotiations, sending FTSE 100 into the red.

 
Soaring pound downs FTSE on Brexit hopes
 

Update: A strong pound has sent the FTSE 100 into the red, amid strengthening hopes of progress in the UK's Brexit negotiations.

Sterling climbed 0.7% against the dollar to $1.35, building on yesterday's gains, while the euro was down 0.3% against the pound at 88.1p.

That weighed on the FTSE 100, which closed 67 points, or 0.9%, lower at 7,327.

The latest boost to the pound came from a Times report that British and European Union officials were close to a breakthrough on negotiations over the Northern Ireland border under Brexit.

Traders leapt on the signs of further progress in Brexit negotiations, following yesterday's sterling rally on reports the Brexit 'divorce bill' was set to be agreed.

'Optimism that our Brexit negotiators can do a deal at December's summit and move into crucial post-Brexit trade talk, is greater now than it has been,' said Lee Wild, head of equity strategy at Interactive Investor.

He said the pound's movements would continue to drive share prices, with a strengthening rally hurting stocks which make the bulk of their money overseas and favouring those focused on the domestic UK economy.

'Retailers like Next (NXT) and Marks and Spencer (MKS) will benefit from lower import costs, and a strong economy is good for both housebuilders and the banking sector whose margins improve as borrowing costs rise.

'Solid companies like these are currently among the cheapest and highest yielding stocks around and will outperform is there's a whiff that Britain can secure a fair Brexit deal.'

Daily Mail and General Trust (DMGOa) overshadowed the rest of the market with a 22% fall to 550p, after the publisher warned of a difficult year ahead, wrote down the value of three of its businesses, and posted a £112 million full-year loss.

Liberum analyst Ian Whittaker downgraded the stock to 'hold' from 'buy'.

'What is clear is that DMGT faces another year of "transformation" but it is not entirely clear when we will get the acceleration of top-line growth,' he said.

On the FTSE 250, shares in Marston's (MARS) soared 10% to 115.3p after the pub group announced a 10% jump in underlying revenues, with profits up 3%.

'While the share price has been disappointing in recent years, primarily due to the macro-economic environment and profit warnings from peers and rivals, these results show us that Martson's own performance remains sound,' said Helal Miah, investment research analyst at The Share Centre.

'Interested investors should appreciate that the good sales performance came about despite the subdued trading environment experienced across the sector since the summer months.'

Marston's was joined at the top of the index by P2P Global Investments (P2P ), up 2.6% at 788p as the peer-to-peer lending investment trust promised a bigger dividend, better returns and a more aggressive buyback policy.

Among' small-cap' stocks, shares in Lamprell (LAM) fell 2.9% to 68p as the oil rig builder warned full-year earnings would miss expectations.

1 comment so far. Why not have your say?

Alan Tonks

Nov 30, 2017 at 18:33

Our Brexit negotiators, who are you kidding the meaning of negotiate:

To arrange, work out, thrash out, hammer out, reach an agreement on, agree on, come to terms about, reach terms on, broker, settle, clinch, conclude, contract, pull off, bring off, bring about, transact, informal sort out.

What it doesn’t include is capitulation, one I did leave out was swing and that is what should happen to sham negotiators. BL*ODY DISGUSTING!!

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

Look up the shares

  • Next PLC (NXT.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Marks and Spencer Group PLC (MKS.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Aviva PLC (AV.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Marston's PLC (MARS.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Lamprell PLC (LAM.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Daily Mail and General Trust P L C (DMGOa.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the investment trusts

  • P2P Global Investments (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

What others are saying

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Sunday Papers: Bosses attack May on Brexit muddle

by Himanshu Singh on Jun 24, 2018 at 05:58

Sorry, this link is not
quite ready yet