Sector movers: Supermarkets, life insurers lead declines on FTSE

Supermarkets led the declines on the FTSE on Wednesday after HSBC warned on sector profit margins.

HSBC said margins are likely to be trampled afresh by a round of heavy price cuts from Asda, further ratcheting up price pressure as industry data shows price deflation continues unabated.

With BRC-Nielsen data also released on Wednesday showing UK shop prices were continuing to fall, HSBC noted that the chief executive of Asda's US owner, Walmart, recently told shareholders that the UK supermarket chain will prioritise sales over margin.

"We believe there are signs that Asda may be about to fundamentally reposition on price, bringing down sector profits," analysts at the bank said.

Tesco and Morrison were among the biggest fallers in afternoon trade on the FTSE 100.

Life insurance stocks were also under pressure after Aviva, Standard Life and Prudential stopped trading in their property portfolios due to risks following Britain’s decision to exit the European Union on 23 June.

On the upside, mining stocks rallied as precious metal prices rose with Fresnillo, Randgold Resources, Centamin, Hochschild Mining and Acacia Mining in the black.

Top performing sectors so far today

Alternative Energy 0.00 0.00%

Alternative Investment Instruments NULL 0.00%

Automobiles and related providers NULL 0.00%

Banking NULL 0.00%

Beverages NULL 0.00%

Bottom performing sectors so far today

Food & Drug Retailers 2,482.68 -6.19%

Life Insurance 5,767.99 -4.55%

Fixed Line Telecommunications 4,446.18 -2.88%

Real Estate Investment Trusts 2,529.48 -2.62%

Real Estate Investment & Services 2,129.61 -2.34%