Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a762324

FTSE falls as Ukraine plane crash and Russia sanctions weigh

by Daniel Grote on Jul 17, 2014 at 16:47

FTSE falls as Ukraine plane crash and Russia sanctions weigh

The FTSE 100 has extended losses as the latest round of US sanctions against Russia weighed on the UK's blue-chip index, with reports of a passenger plane crashing in Ukraine prompting further share price falls in late trading.

The FTSE 100 closed 46 points, or 0.7%, down at 6,738, after the US announced measures targeting a number of Russian firms over what it claimed was Moscow's failure to curb separatist violence in eastern Ukraine. Reports of a passenger jet crashing in eastern Ukraine, with one Ukrainian official reportedly claiming it had been shot down by militants, led to a sharp slump in shares in late trading. 

Russia’s Micex index fell 2.4%, with oil and gas groups Novatek (NVTK.MM) and Rosneft (ROSN.MM) down 5.5% and 4.3% respectively. Both companies are specifically targeted by the sanctions, and will be denied long-term loans from US entities.

'Just as stocks in Europe were recouping losses from the Banco Espirito Santo sell-off, a fresh round of sanctions on Russia has forced European investors to scale back investments in any stocks potentially affected,' said Jasper Lawler, market analyst at CMC Markets UK.

The news helped support the oil price above $107 per barrel, while gold jumped to $1,314.66.

The JPMorgan Russian Securities (JRS) investment trust was one of the biggest fallers on the FTSE Small Cap index on the news, dropping 4.6% to 454.3p.

Investors meanwhile responded enthusiastically to Liberty’s acquisition of a stake in ITV, deeming the broadcaster a possible mergers and acquisition (M&A) target.

ITV (ITV) jumped 10.2p, or 5.6%, to 194p after cable company Liberty Global snapped up a 6.4% stake in the broadcaster from BSkyB (BSY).

‘We would not expect an immediate bid, but Liberty’s purchase suggests it may be interested in acquiring the asset at some point as Virgin Media (which Liberty owns) tried to do nearly a decade ago,’ said analysts at Liberum.

‘ITV is now likely to be seen as a potential M&A story (especially given recent newsflow in the media sector).’

Sign in / register to view full article on one page

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:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Look up the shares

  • ITV PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • British Sky Broadcasting Group PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • JPMorgan Russian Securities Closed Fund
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Mothercare PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet