London close: Stocks finish flat as optimism fades, Greek uncertainty persists

UK stocks erased gains by the close on Friday with investors turning cautious ahead of the weekend, as ongoing uncertainty in Greece eroded earlier optimism.

The FTSE 100 finished just 2.57 points higher (+0.04%) at 6,710.45, pulling back after hitting a high of 6,759.29 early on.

Markets had opened strongly despite another breakdown in Greek debt talks overnight, with analysts suggesting that the low likelihood of a deal was already priced into stocks. However, shares had trimmed gains by the afternoon following a weak start on Wall Street.

On a quiet day in terms of economic data, sentiment continued to be driven by Greece as concerns about a run on the country’s banks intensified after a Eurogroup meeting of finance ministers in Luxembourg failed to result in a cash-for-reforms deal for Athens.

According to reports, some €2bn has already been withdrawn from Greek banks so far this week, including a record €1bn on Wednesday alone. Furthermore, an ECB official has warned that Greek banks may not be able to open at all next week due to insufficient funds, prompting worries about a further flight of funds on Friday.

Officials have now agreed to hold an emergency EU summit on Monday in what is being seen as a last-ditch attempt to secure funds for Greece, as it nears a €1.6bn debt repayment to the IMF on 30 June.

“It would be unwise to suggest that this is the last chance for Greece and its creditors to hammer out a deal, but with time running out it would certainly be beneficial for markets and for investors’ peace of mind if the two sides were to sort something out,” said IG analyst Chris Beauchamp.

Hikma rises on upgrade, COLT surges

Pharmaceuticals group Hikma was a high riser after analysts at Citigroup upgraded the stock from ‘neutral’ to ‘buy’, recommending investors to “keep the faith” despite a 25% drop in the shares since late February.

Equipment rental outfit Ashtead was also boosted by comments from Exane BNP Paribas, which lifted its rating on the shares to ‘outperform’.

In contrast, BP was in the red after RBC Capital Markets downgraded its stance to’ sector perform’ from ‘outperform’ following the stock’s significant outperformance against the sector. It said the “risk reward opportunity has become more balanced for now”.

Shares in COLT surged over 21% after Fidelity said it has made a 190p per share offer for the remaining in the stake in the company it does not already own. The board, however, reckons that the offer undervalues the company.

Chip designer ARM Holdings rose on rumours that tech giant Apple could be switching from Intel chips to ARM products.

Mining stocks were providing a drag in afternoon trade as they extended losses as the session wore on, including Fresnillo, Glencore and Randgold.

Market Movers
techMARK 3,156.35 +0.26%
FTSE 100 6,710.45 +0.04%
FTSE 250 17,704.99 +0.15%

FTSE 100 - Risers
TUI AG Reg Shs (DI) (TUI) 1,156.00p +2.94%
ARM Holdings (ARM) 1,118.00p +2.76%
Hikma Pharmaceuticals (HIK) 1,947.00p +2.74%
London Stock Exchange Group (LSE) 2,404.00p +2.30%
St James's Place (STJ) 891.50p +2.18%
Sports Direct International (SPD) 683.50p +1.86%
3i Group (III) 526.50p +1.84%
Ashtead Group (AHT) 1,120.00p +1.82%
Barclays (BARC) 265.75p +1.61%
Associated British Foods (ABF) 3,050.00p +1.57%

FTSE 100 - Fallers
Fresnillo (FRES) 712.50p -1.99%
Glencore (GLEN) 271.55p -1.74%
Royal Mail (RMG) 502.50p -1.28%
Randgold Resources Ltd. (RRS) 4,498.00p -1.06%
Diageo (DGE) 1,879.00p -1.00%
Hammerson (HMSO) 630.00p -0.87%
BP (BP.) 431.35p -0.71%
SABMiller (SAB) 3,339.50p -0.70%
Reed Elsevier (REL) 1,052.00p -0.66%
Rio Tinto (RIO) 2,732.00p -0.64%

FTSE 250 - Risers
COLT Group SA (COLT) 188.00p +19.97%
Saga (SAGA) 221.50p +5.28%
Centamin (DI) (CEY) 64.85p +5.19%
Allied Minds (ALM) 578.00p +5.09%
Poundland Group (PLND) 312.20p +4.03%
Infinis Energy (INFI) 197.90p +3.83%
Just Retirement Group (JRG) 183.50p +3.67%
Nostrum Oil & Gas (NOG) 568.50p +3.36%
RPS Group (RPS) 230.00p +3.05%
Entertainment One Limited (ETO) 344.90p +2.77%

FTSE 250 - Fallers
Card Factory (CARD) 332.00p -7.65%
Ophir Energy (OPHR) 114.90p -4.25%
Computacenter (CCC) 705.00p -3.89%
Greencore Group (GNC) 312.00p -3.38%
Soco International (SIA) 182.10p -3.09%
Law Debenture Corp. (LWDB) 489.50p -3.07%
Imagination Technologies Group (IMG) 224.30p -2.73%
Fidelity China Special Situations (FCSS) 158.10p -2.47%
UDG Healthcare Public Limited Company (UDG) 493.00p -2.38%
Cairn Energy (CNE) 176.00p -2.28%