London close: FTSE slips from record as Greek uncertainty resurfaces

Renewed concerns about Greece prompted a retreat from all-time highs on Wednesday as investors scaled back their appetite for risk after a rally the previous session.

London's FTSE 100 ended the day down 0.2% at 6,935.38, pulling back after hitting a new record close of 6,949.63 on Tuesday.

Recent gains came on the back of relatively dovish comments from Federal Reserve chair Janet Yellen, who said that the central bank would still take a cautious approach to raising rates, while an approval for Greece’s four-month bailout extension by the Eurogroup also boosted sentiment.

However, Greece still needs the vote from several Eurozone countries to secure it request, with German politicians expected to pose a tough challenge.

Germany's finance minister Wolfgang Schäuble told German public radio SWR2 that there was a "lot of doubt" as to whether Greece would stick to the new plan or not. A test vote from the parliament is expected on Thursday, followed by the final vote on Friday.

According to analyst Jasper Lawler from CMC Markets, the list of reforms sent by Greece to the Eurogroup is "so far just a set of empty promises". He said: "Some more solid assurances that the reforms will actually take place will be needed to give creditors some confidence that they are not throwing good money after bad."

In economic data on Wednesday, China's manufacturing sector returned to growth this month, according a survey by HSBC, while the British Banker's Association reported that UK mortgage approvals increased more than expected in January.

Weir Group drops, AO World plummets

Shares in engineering outfit Weir took a hard hit, dropping 9% after the company warned that the sharp decline in the price of oil will have a "significant reduction" in constant currency revenues this year.

Electrical appliances retailer AO World plummeted nearly 32% after forecasting full-year results “slightly below market expectations” after a harder fourth quarter.

On the rise was wealth management group St James’s Place which impressed City analysts with a solid set of annual results, as strong cash generation led it to hike its final dividend by 50%.

Hospitality group Whitbread also perked up after saying it expects full-year results to come in at the top end of expectations after a strong fourth quarter from its Premier Inn and Costa brands.

Morrisons reassured investors with the quick appointment of a new chief executive after Dalton Philips was pushed out of the company earlier this month after five years at the helm. The company named the former head of Tesco’s Asian business, David Potts, as its boss.

Shares in Sky poured on respectable gains after Citigroup retained a ‘buy’ recommendation on the stock and promoted it to the bank's ‘Focus List Europe’, as it raised its price target to 1,200p from 1,075p.

Market Movers

techMARK 3,150.33 -0.01%
FTSE 100 6,935.38 -0.20%
FTSE 250 17,188.27 -0.08%

FTSE 100 - Risers
St James's Place (STJ) 930.00p +4.26%
Sky (SKY) 1,005.00p +3.18%
Whitbread (WTB) 5,245.00p +2.74%
Mondi (MNDI) 1,340.00p +2.29%
Ashtead Group (AHT) 1,176.00p +2.17%
Kingfisher (KGF) 349.10p +2.17%
Persimmon (PSN) 1,684.00p +2.06%
ARM Holdings (ARM) 1,151.00p +1.59%
Shire Plc (SHP) 5,230.00p +1.55%
Randgold Resources Ltd. (RRS) 5,045.00p +1.37%

FTSE 100 - Fallers
Weir Group (WEIR) 1,700.00p -8.75%
Standard Chartered (STAN) 926.30p -2.56%
Smiths Group (SMIN) 1,137.00p -2.24%
GKN (GKN) 365.70p -2.11%
Intertek Group (ITRK) 2,422.00p -1.94%
SABMiller (SAB) 3,634.50p -1.65%
Dixons Carphone (DC.) 442.40p -1.49%
TUI AG Reg Shs (DI) (TUI) 1,174.00p -1.43%
Experian (EXPN) 1,180.00p -1.34%
Vodafone Group (VOD) 223.70p -1.24%

FTSE 250 - Risers
Petrofac Ltd. (PFC) 886.00p +8.71%
NMC Health (NMC) 557.00p +7.12%
Spire Healthcare Group (SPI) 326.00p +3.23%
Greggs (GRG) 865.50p +2.73%
Workspace Group (WKP) 842.50p +2.49%
Aveva Group (AVV) 1,593.00p +2.44%
UDG Healthcare Public Limited Company (UDG) 475.10p +2.28%
Bovis Homes Group (BVS) 957.00p +2.19%
Unite Group (UTG) 545.00p +2.16%
Just Retirement Group (JRG) 169.90p +2.16%

FTSE 250 - Fallers
AO World (AO.) 192.00p -31.67%
International Personal Finance (IPF) 432.30p -7.51%
Hays (HAS) 148.70p -6.95%
Afren (AFR) 9.90p -5.71%
Bwin.party Digital Entertainment (BPTY) 85.35p -5.69%
Drax Group (DRX) 411.80p -4.21%
Supergroup (SGP) 975.00p -3.85%
IMI (IMI) 1,387.00p -3.41%
Telecom Plus (TEP) 1,099.00p -3.17%
Polymetal International (POLY) 562.00p -3.02%