The UK benchmark index has slipped marginally into the red, having traded marginally higher earlier in the session, with political uncertainty weighing on investor sentiment. In individual movers, Coca-Cola HBC (LON:CCH) is underperforming the broader market, as JPMorgan lowered its stance on the blue-chip bottler.
FTSE 100 subdued on Monday
As of 12:24 GMT, the Footsie had given up 10.79 points to stand 0.15 percent lower at 7,422.20, having traded about 0.2 percent higher earlier. Sentiment has been subdued today following a report in The Times that 40 Conservative lawmakers had agreed to sign a letter of no confidence in Prime Minister Theresa May. The news, however, pressured the pound earlier in the session, fuelling demand for blue-chips with international exposure.
“Investors are rightly exercising caution on sterling given the risks with regards to the Brexit process,” ETX Capital analyst Neil Wilson commented, as quoted by Proactive Investors. “With the EU preparing for talks to collapse, the stakes are getting higher. Britain has less than two weeks to come up with answers for the EU or we face a potential no-deal scenario.”
Coca-Cola HBC share price dips
Coca-Cola HBC has been one of today’s most notable Footsie fallers after analysts at JPMorgan lowered their rating on the company to ‘neutral’. Reuters quoted the broker as saying that investors in the bottling company should take profits and await a better entry point after a potential deal to buy a stake in Coca Cola Beverages Africa, an announcement which they expect in the next few months. Coca-Cola HBC’s share price is 4.37 percent down at 2,472.00p.
The FTSE 100 was 0.18 percent down at 7,419.31 points as of 12:45 GMT on Monday, 13 November 2017.