LONDON MARKETS: FTSE 100 Declines As Burberry Shares Sink, House Builders Drop
November 09 2017 - 3:41AM
Dow Jones News
By Carla Mozee, MarketWatch
AstraZeneca shares rise after results; Hikma cuts guidance
Blue-chip stocks in the U.K. declined Thursday, as house
builders fell following soft industry figures and as Burberry Group
PLC shares tumbled the most in more than five years after a
disappointing earnings report from the luxury-goods maker.
What markets are doing: The FTSE 100 index lost 0.2% to
7,515.04, as basic material, industrial and consumer-related
shares. But the financial and health care sectors were higher. On
Wednesday, the benchmark fell 0.2%.
(http://www.marketwatch.com/story/marks-and-spencer-shares-swing-lower-keeping-ftse-100-in-check-2017-11-08)
The pound fell to $1.3105, down from $1.3117 late Wednesday in
New York.
What's moving markets: A widely watched survey on U.K. house
prices showed slowing growth in October compared with September.
The Royal Institution of Chartered Surveyors said its monthly house
price balance dropped 5 points, to plus 1 in October, below a Wall
Street Journal consensus estimate of a reading of plus 3.
"The combination of the increased cost of moving, a lack of
fresh stock coming to the market, uncertainly over the political
climate and now an interest rate hike appears to be taking its toll
on activity in the housing market," said Simon Rubinsohn, RICS's
chief economist.
Retailers were back in focus, with earnings reports in from
Burberry and grocery-chain operator J Sainsbury PLC.
Read:Weak British retail sales flash 'warning sign' for crucial
shopping season
(http://www.marketwatch.com/story/weak-british-retail-sales-flash-warning-sign-for-crucial-shopping-season-2017-11-07)
Stock movers: Burberry shares (BRBY.LN) (BRBY.LN) sank 11%, the
worst drop since September 2012, according to FactSet data, after
the company warned that it doesn't expect sales growth until fiscal
2021
(http://www.marketwatch.com/story/burberry-shares-drop-as-it-warns-on-sales-2017-11-09).
It also said it will sharpen its focus on the high-end market in
part as it aims for high-single digit revenue growth and
"meaningful operating margin expansion".
"By re-energizing our product and customer experience to
establish our position firmly in luxury, we will play in the most
rewarding, enduring segment of the market," said Burberry's Chief
Executive Marco Gobbetti.
Shares of home builders were lower after the RICS survey.
Persimmon (PSN.LN) and Barratt Developments PLC (BDEV.LN) each
flopped down 2.7% and Taylor Wimpey PLC (TW.LN) gave up 2.4%.
Shares of Sainsbury (SBRY.LN) (SBRY.LN) were off 2.8%, with the
company cutting its dividend
(http://www.marketwatch.com/story/sainsburys-pretax-profit-drops-41-cuts-dividend-2017-11-09)after
reporting a 41% decrease in pretax profit for the first half of the
year.
AstraZeneca PLC (AZN.LN) (AZN.LN) rose 1.9% as the drugmaker
said third-quarter operating profit 12% to $1.15 billion
(http://www.marketwatch.com/story/astrazeneca-profit-up-despite-crestor-hit-to-sales-2017-11-09),
boosted by a one-off tax benefit. But product sales fell 3%
stemming from the loss of the company's exclusivity on Crestor and
Seroquel.
Hikma Pharmaceuticals PLC (HIK.LN) (HIK.LN) was pulled down 7%
as the company cut its guidance for its generics unit for a third
time.
(http://www.marketwatch.com/story/hikma-cuts-guidance-on-generics-unit-for-3rd-time-2017-11-09)
(END) Dow Jones Newswires
November 09, 2017 04:26 ET (09:26 GMT)
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