London close: Stocks finish mixed as BoE keeps rates on hold

The FTSE 100 ended the session down 0.06% at 6,503.72, while the FTSE 250 advanced 0.27% to 20,809.30.

Sterling was stronger against its major trading pairs, last advancing 0.12% on the dollar to $1.3663, and gaining 0.63% against the euro to €1.1408.

Earlier in the day, the Bank of England left interest rates unchanged at 0.1% and kept its bond-buying programme at £895bn, as expected.

“The Bank of England looks unlikely to cut rates anytime soon, with a six-month adjustment period meaning the UK economy will be well into its recovery by the time they are even considered,” said IG senior market analyst Joshua Mahony.

“Meanwhile, wider Western market optimism comes as a stimulus boost looks likely to coincide with a recovery phase for the US economy.”

A survey also showed UK construction sector activity unexpectedly contracted in January as the third national lockdown took its toll.

The IHS Markit/CIPS construction purchasing managers’ index fell to 49.2 from 54.6 in December, missing expectations for a reading of 52/9.

That marked the first overall decline in construction output since May 2020.

“The construction sector ended a seven-month run of expansion in January as a renewed slide in commercial work dragged down overall output volumes,” said Tim Moore, economics director at IHS Markit.

“House building was the only major construction segment to register growth, but momentum slowed considerably in comparison to the second half of last year.”

Moore said construction companies continued to report major delays with receiving imported products and materials from suppliers, with congestion at UK ports contributing to the sharpest lengthening of delivery times since last May.

“Adding to the squeeze on the construction sector, rising steel and timber costs led to the fastest rate of input price inflation for just over two-and-a-half years.”

In equity markets, caterer Compass Group gained 4.45% as it told shareholders it was sorry for substandard free school meal packages and said revenue fell by a third in the first quarter, with no pickup expected in the second quarter.

Premier Inn owner Whitbread pushed 4.21% higher after it said late on Wednesday that it had refinanced its credit facility and priced two new green bonds.

British Airways owner IAG was also in the black, by 3.29%, along with InterContinental Hotels which added 2.83% and cruise operator Carnival which was 4.45% firmer, most likely on the back of vaccine optimism.

Barratt Developments rose 2.21% after saying that first-half pre-tax profit edged higher amid record completions, as the housebuilder declared an interim dividend.

On the downside, Unilever fell 5.82% as the consumer goods company increased its fourth-quarter dividend and reported a decline in annual profit caused mainly by currency swings.

BT Group lost 3.22% after saying it was on track to meet full-year forecasts despite a fall in third-quarter core earnings.

Royal Dutch Shell reversed earlier gains to close 2.07% weaker after it said fourth-quarter adjusted earnings fell 87% to a worse-than-expected $393m year-on-year as the Covid-19 pandemic hammered energy consumption.

Market Movers

FTSE 100 (UKX) 6,503.72 -0.06%
FTSE 250 (MCX) 20,809.30 0.27%
techMARK (TASX) 4,124.27 0.33%

FTSE 100 - Risers

Lloyds Banking Group (LLOY) 36.11p 5.65%
NATWEST GROUP PLC ORD 100P (NWG) 163.85p 5.54%
Compass Group (CPG) 1,409.50p 4.45%
Whitbread (WTB) 3,120.00p 4.21%
International Consolidated Airlines Group SA (CDI) (IAG) 153.70p 3.29%
Ashtead Group (AHT) 3,934.00p 2.88%
InterContinental Hotels Group (IHG) 4,985.00p 2.83%
Barclays (BARC) 146.00p 2.81%
Barratt Developments (BDEV) 689.40p 2.38%
Intermediate Capital Group (ICP) 1,785.00p 2.23%

FTSE 100 - Fallers

Unilever (ULVR) 4,067.00p -6.20%
Fresnillo (FRES) 1,000.00p -3.29%
BT Group (BT.A) 124.55p -3.22%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,930.00p -3.22%
United Utilities Group (UU.) 913.00p -2.42%
Polymetal International (POLY) 1,600.50p -2.26%
Imperial Brands (IMB) 1,429.50p -2.22%
Royal Dutch Shell 'B' (RDSB) 1,246.00p -2.07%
Royal Dutch Shell 'A' (RDSA) 1,309.20p -2.01%
Aviva (AV.) 349.80p -1.99%

FTSE 250 - Risers

Capital & Counties Properties (CAPC) 147.00p 6.91%
National Express Group (NEX) 283.40p 4.81%
Carnival (CCL) 1,326.50p 4.45%
RIT Capital Partners (RCP) 2,135.00p 3.90%
Just Group (JUST) 79.60p 3.57%
Close Brothers Group (CBG) 1,516.00p 3.41%
ICG Enterprise Trust (ICGT) 982.00p 3.39%
Meggitt (MGGT) 428.20p 3.31%
Kaz Minerals (KAZ) 799.00p 3.28%
Aggreko (AGK) 635.00p 3.25%

FTSE 250 - Fallers

Hochschild Mining (HOC) 215.00p -3.93%
Rank Group (RNK) 135.00p -3.88%
FDM Group (Holdings) (FDM) 1,040.00p -3.35%
Centamin (DI) (CEY) 112.40p -3.27%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,930.00p -3.22%
BMO Commercial Property Trust Limited (BCPT) 73.40p -2.78%
Spirent Communications (SPT) 231.50p -2.73%
TI Fluid Systems (TIFS) 259.35p -2.68%
RHI Magnesita N.V. (DI) (RHIM) 3,798.00p -2.57%
Helios Towers (HTWS) 169.40p -2.53%