FTSE 100 movers: 'Stellar' ABF and banks gains not enough to lift index
The FTSE 100 was in the red late on Thursday afternoon as ex-dividend stocks and a higher pound dragged the benchmark down.
Following hawkish talk from the US Federal Reserve and European Central Bank members, the pound was up against the dollar but down against the euro.
A stronger euro was pushing the lower, and thus the pound higher, hurting the large internationally focused contingent on the London blue chip index.
But as yields on US Treasuries climbed as investors around the world react to the hawkish policy signals from central banks that tighter monetary policy lay ahead, Royal Bank of Scotland, Barclays and Lloyds as UK banks have one of the tightest correlation to US yields.
Likewise life insurers Avia and Legal & General were battling the sinking tide as their fortunes are also closely linked to these yields.
A host of stocks going ex-dividend on Thursday was another anchor on the index, with the list topped by retailer heavyweights Next and Burberry.
Top riser was Associated British Foods thanks to very strong third quarter trading at Primark UK that more than offset pressures in UK food. The "stellar" update saw some analysts such as those at Credit Suisse, raise full year earnings estimates by 1%. CS, which also upped its price target to £33.50 from £32.
Market Movers
FTSE 100 (UKX) 7,338.07 -0.40%
FTSE 250 (MCX) 19,369.77 -0.42%
techMARK (TASX) 3,486.02 -0.58%
FTSE 100 - Risers
Associated British Foods (ABF) 2,995.00p 2.50%
Barclays (BARC) 209.30p 2.50%
Royal Bank of Scotland Group (RBS) 260.40p 1.84%
Marks & Spencer Group (MKS) 341.00p 1.49%
Barratt Developments (BDEV) 590.50p 1.46%
Royal Mail (RMG) 425.30p 1.33%
Lloyds Banking Group (LLOY) 66.48p 1.20%
Legal & General Group (LGEN) 266.80p 1.10%
Aviva (AV.) 538.00p 1.03%
Persimmon (PSN) 2,369.00p 1.02%
FTSE 100 - Fallers
Next (NXT) 3,796.00p -2.79%
Glencore (GLEN) 299.65p -2.52%
Provident Financial (PFG) 2,346.00p -2.33%
Ashtead Group (AHT) 1,550.00p -2.27%
Fresnillo (FRES) 1,439.00p -2.24%
Convatec Group (CTEC) 303.30p -2.16%
Mondi (MNDI) 1,980.00p -2.13%
Smurfit Kappa Group (SKG) 2,350.00p -2.12%
Worldpay Group (WPG) 365.10p -1.85%
Sainsbury (J) (SBRY) 247.30p -1.83%