iNVEZZ.com, Tuesday, December 9: Britain’s blue-chip index has posted a hefty fall in today’s session, pressured by supermarkets which have been dragged down by Tesco’s (LON:TSCO) fourth profit warning this year. Energy stocks have also been sold off on the back of the latest oil price decline.
As of 12:23 GMT, the FTSE 100 had shed 89.98 points to stand 1.35 percent lower at 6,582.17. The UK benchmark index has slid deep into the red alongside other European indices with a slide in oil prices weighing on investor sentiment.
“Suggestions are flying around that by (the second quarter of) 2015 we could have crude down at $43 a barrel so it’s perhaps little surprise that the oil service and exploration companies are once again finding themselves consigned to the foot of the leaderboard,” CNBC quoted Tony Cross, a market analyst at Trustnet Direct, as saying in a note. Petrofac (LON:PFC) and The Weir Group (LON:WEIR) have posted the biggest declines in the sector with Petrofac’s share price having lost 3.54 percent to 739.84p and shares in Weir currently trading 3.40 percent lower at 1,681.80p.
Among individual stock news, Tesco’s share price has tumbled 9.80 percent to 168.95p after the troubled retailer issued its fourth profit warning this year. (Tesco share price tumbles 14% as supermarket warns on profit again) The news has also pressured fellow blue-chip supermarkets J Sainsbury’s (LON:SBRY) and Wm Morrison (LON:MRW), with Sainsbury’s share price declining 3.77 percent to 226.92p and shares in Morrisons changing hands 4.87 percent lower at 175.90p.
Among the few bright spots in today’s trading has been G4S (LON:GFS) whose shares have advanced after Credit Suisse moved its recommendation on the stock from ‘neutral’ to ‘outperform’ and raised its target price from 245p to 320p.The Guardian quoted the analysts as describing the company as “a combination of an attractive multiyear self-help story plus a stock for which organic growth should accelerate into 2015”. G4S’ share price currently stands 2.85 percent higher at 281.80p.
The FTSE 100 was 1.57 percent down at 6,567.72 points as of 12:47 GMT on December 9, 2014.