London close: FTSE 100 drops to January lows on Greek uncertainty, traders await FOMC comments

UK stocks fell for the fourth straight day on Wednesday with London’s FTSE 100 finishing at its lowest level in five months as Greece continued to fight with creditors to secure a bailout deal.

Investors were also showing caution ahead of the conclusion of a monetary policy meeting at the Federal Reserve.

The Footsie fell 29.55 points (-0.44%) to 6,680.55, finishing below the 6,700 mark for the first time since 20 January.

Following the collapse of talks with its lenders at the weekend, Greece said it was prepared to make concessions in order to strike a deal, but will not budge when it comes to cutting existing pensions.

Greece's chief negotiator, Euclid Tsakalotos, told Reuters that Athens had insufficient funds to pay the €1.6bn due to the IMF on 30 June and that compromising to unlock frozen aid would be a necessity.

Meanwhile, the Bank of Greece warned that if the country does not reach a deal, it could face a “painful” default, an exit from the Eurozone and EU, as well as surging inflation. “Failure to reach an agreement would, on the contrary, mark the beginning of a painful course,” the BoG said, adding that things could “snowball into an uncontrollable crisis”.

The two-day US Federal Open Market Committee meeting was set to an end on Wednesday evening after UK markets closed. While a rate hike at this month’s meeting seems unlikely, investors will be looking out for possible hints about a future change in monetary policy.

Analyst Michael Hewson from CMC Markets said traders will be watching whether or not the Fed adjusts its growth and inflation forecasts. “The tone of Janet Yellen’s press conference will also be closely scrutinised to see whether the Fed still has concerns about the strength of the US dollar,” he said.

Berkeley builds on gains

Housebuilders were performing well on Thursday, led by Berkeley Group which impressed investors with a 44.6% jump in full-year pre-tax profit to £423.5m. Shares finished up 10% after it said domestic demand was strong in its core markets of London and the south of England.

Persimmon and Barratt Developments also put in decent gains.


Betfair declined despite meeting analysts’ forecasts with a 53% rise in full-year operating profit as product and marketing investment drove record customer activity. Broker Numis raised its rating on the stock from ‘sell’ to ‘reduce’, but said its valuation was still “too high”.

Lloyds was in demand after Deutsche Bank analysts named the lender as one of its “likes” ahead of the announcement of the upcoming Basel 4 requirements which measure balance sheet risk and capital ratios.

Spirits group Diageo was being lifted by rumours that LVMH could buy the UK group’s 34% stake in Moet Hennessy.

High street sports retailer JD Sports Fashion edged lower despite saying it expects to meet annual forecasts after a solid start to the year. However, the company did note tough comparatives with the previous year and weaker margins in Europe.

Supermarket rivals Morrisons, Sainsbury’s and Tesco fell after Credit Suisse initiated coverage of the sector with a negative stance. The bank said it sees few opportunities within a group that has historically mis-allocated capital, is faced with extreme competitive pressures and operates in a low-growth environment.

RBS declined after admitting that some 600,000 transactions had gone 'missing' with payments not being deposited in a number of accounts overnight. The bank said the transaction affected customers at Natwest, Ulster Bank, Coutts and RBS.

Market Movers
techMARK 3,143.81 -0.31%
FTSE 100 6,680.55 -0.44%
FTSE 250 17,706.17 -0.17%

FTSE 100 - Risers
Persimmon (PSN) 1,991.00p +1.63%
Barratt Developments (BDEV) 618.50p +1.48%
Sky (SKY) 1,043.00p +1.36%
BT Group (BT.A) 450.80p +1.25%
Centrica (CNA) 270.50p +1.16%
Smiths Group (SMIN) 1,140.00p +0.97%
Lloyds Banking Group (LLOY) 86.35p +0.76%
Diageo (DGE) 1,881.00p +0.62%
BP (BP.) 435.00p +0.60%
SSE (SSE) 1,594.00p +0.44%

FTSE 100 - Fallers
Experian (EXPN) 1,179.00p -2.88%
Land Securities Group (LAND) 1,236.00p -2.52%
British Land Company (BLND) 812.50p -2.46%
Rolls-Royce Holdings (RR.) 918.50p -2.44%
Kingfisher (KGF) 363.50p -2.31%
Intu Properties (INTU) 312.90p -2.22%
Hammerson (HMSO) 630.50p -2.17%
TUI AG Reg Shs (DI) (TUI) 1,137.00p -1.81%
Meggitt (MGGT) 471.40p -1.75%
International Consolidated Airlines Group SA (CDI) (IAG) 493.50p -1.69%

FTSE 250 - Risers
Berkeley Group Holdings (The) (BKG) 3,481.00p +10.23%
Imagination Technologies Group (IMG) 229.20p +3.48%
Soco International (SIA) 191.60p +2.73%
Fisher (James) & Sons (FSJ) 1,360.00p +2.56%
Tullow Oil (TLW) 370.90p +2.46%
Daejan Holdings (DJAN) 5,745.00p +2.32%
Carillion (CLLN) 336.00p +2.31%
Cable & Wireless Communications (CWC) 64.80p +2.05%
Ocado Group (OCDO) 383.60p +2.02%
Card Factory (CARD) 355.00p +1.98%

FTSE 250 - Fallers
Betfair Group (BET) 2,416.00p -3.90%
Just Eat (JE.) 407.00p -3.60%
Kaz Minerals (KAZ) 223.80p -3.53%
Spire Healthcare Group (SPI) 321.80p -2.48%
Fidessa Group (FDSA) 2,200.00p -2.44%
Ashmore Group (ASHM) 295.00p -2.32%
St. Modwen Properties (SMP) 447.70p -2.27%
Workspace Group (WKP) 905.50p -2.27%
Paragon Group Of Companies (PAG) 427.90p -2.24%
UDG Healthcare Public Limited Company (UDG) 507.50p -2.12%