London midday: Stocks fall as investors book profits

The FTSE 100 declined on Friday as investors booked profits following a four-day rally.

This week has been largely underpinned by the Bank of Japan and Federal Reserve’s policy decisions on Wednesday. The market was boosted by news the Fed left interest rates unchanged and by the BoJ saying it would aim to keep yields on 10-year government bonds at around current levels of 0%.

“The key central bank meetings on Wednesday cleared the way for investors to move back into equities, and while the last week of September tends to be a tough one for stock markets, the way ahead look very congenial indeed,” said Chris Beauchamp, chief market analyst at IG.

On Friday’s agenda there is little in the way of economic news to drive the market with the only notable releases being eurozone and US services data.

Markit’s eurozone services purchasing managers’ index fell to 52.6 in September from 52.9 in August, compared to estimates of 52.8. A reading above 50 signals an expansion in the sector while a level below that suggests a contraction.

Markit releases its US services PMI at 1445 BST.

Meanwhile, oil prices continued to rise after Reuters reported that Saudi Arabia is ready to reduce output if Iran agrees to freeze production at current levels of 3.6 million barrels per day. Brent crude edged up 1.08% to $48.15 per barrel and West Texas Intermediate increased 0.30% to $46.46 per barrel.

On the company front, shares in Sports Direct jumped following news that founder and largest shareholder Mike Ashley is taking over as CEO from Dave Forsey. “By taking over as CEO, Mike Ashley is making a public commitment to refocusing and getting the company he founded back on track,” said Jasper Lawler, market analyst at CMC Markets.

Persimmon and its peers got a boost as Liberum upgraded the stock to ‘buy’ from ‘hold’ and lifted price targets across the sector as it took a more positive view.

“We have upgraded estimates across our coverage as 2016 trading is much better than we feared in our immediate post-referendum downgrades. We still expect a dip in earnings in 2017 and 2018, but we have moderated our volume decline expectations."

Housebuilders Barratt Developments and Taylor Wimpey were also in the black following the note.

Anglo American advanced after appointing Fortescue Metals’ Stephen Pearce as finance director following Rene Medori’s decision to retire, as announced back in April.

Vodafone slipped after saying it has signed a new non-equity partner agreement for Cameroon with 4G-LTE telecommunications operator Afrimax Group.

Banks reversed gains seen after the Fed’s decision to hold on rates, with Royal Bank of Scotland and Lloyds Banking Group in the red.

Market Movers

FTSE 100 (UKX) 6,904.90 -0.09%
FTSE 250 (MCX) 17,867.79 -0.67%
techMARK (TASX) 3,525.85 -0.37%

FTSE 100 - Risers

Mediclinic International (MDC) 945.00p 1.67%
Barratt Developments (BDEV) 494.80p 1.60%
Persimmon (PSN) 1,825.00p 1.56%
Anglo American (AAL) 933.90p 1.46%
Dixons Carphone (DC.) 372.10p 1.20%
British American Tobacco (BATS) 4,915.00p 1.07%
Taylor Wimpey (TW.) 155.00p 1.04%
Royal Dutch Shell 'A' (RDSA) 1,873.00p 1.02%
Micro Focus International (MCRO) 2,151.00p 0.99%
Royal Dutch Shell 'B' (RDSB) 1,967.50p 0.87%

FTSE 100 - Fallers

Polymetal International (POLY) 973.50p -8.07%
Royal Bank of Scotland Group (RBS) 182.30p -2.25%
ITV (ITV) 189.90p -2.21%
Provident Financial (PFG) 2,953.00p -1.96%
BAE Systems (BA.) 527.00p -1.95%
easyJet (EZJ) 1,026.00p -1.91%
Travis Perkins (TPK) 1,542.00p -1.72%
Standard Chartered (STAN) 640.50p -1.72%
Pearson (PSON) 761.50p -1.61%
Lloyds Banking Group (LLOY) 56.29p -1.50%

FTSE 250 - Risers

Sports Direct International (SPD) 300.80p 4.84%
Barr (A.G.) (BAG) 520.50p 2.56%
Bellway (BWY) 2,379.00p 2.50%
Softcat (SCT) 316.60p 2.13%
Bovis Homes Group (BVS) 875.00p 1.98%
McCarthy & Stone (MCS) 170.40p 1.79%
Just Eat (JE.) 543.50p 1.78%
Redrow (RDW) 405.90p 1.60%
P2P Global Investments (P2P) 840.00p 1.20%
Crest Nicholson Holdings (CRST) 462.20p 1.18%

FTSE 250 - Fallers

Indivior (INDV) 284.10p -12.91%
Euromoney Institutional Investor (ERM) 1,075.00p -4.36%
IP Group (IPO) 176.80p -3.55%
Zoopla Property Group (WI) (ZPLA) 321.50p -3.45%
AO World (AO.) 162.60p -2.69%
SIG (SHI) 117.00p -2.50%
Evraz (EVR) 157.70p -2.47%
DFS Furniture (DFS) 252.10p -2.44%
Mitie Group (MTO) 182.20p -2.31%
Virgin Money Holdings (UK) (VM.) 298.60p -2.23%