FTSE 100 watch: Strong sterling continues to weigh on Footsie

Mediclinic share price rallies after Jefferies upgrade

FTSE 100 watch: Strong sterling continues to weigh on Footsie

The UK benchmark index has been little changed on the last day of November, pressured by the ongoing strength in the pound which is weighing on blue-chips with international exposure. In individual movers, shares in Mediclinic (LON:MDC) have spiked to the top of the FTSE 100 leaderboard on the back of upbeat analyst comments.

FTSE 100 dips

As of 12:30 GMT, the Footsie had given up 7.58 points to stand 0.10 percent lower at 7,385.98. The blue-chip index has extended the previous session’s losses, continuing to feel the pressure of a stronger pound. Investors are also eyeing the OPEC meeting which is taking place in Vienna.

“Sterling strength is keeping the FTSE 100 subdued,” Joshua Mahoney, market analyst at IG, commented in a note, adding that the index had broken below the notable 7,380-point support level in the previous session, bringing the price back towards the 7,349-point low.

“This brings to mind the possibility of a wider retracement into 7,288, should we break below 7,349,” the analyst continued. “As such, watch out for that level as a key determinant of where we will go in the short term.”

Individual movers

In individual stock news, shares in Mediclinic have advanced as Jefferies lifted its rating on the shares from ‘underperform’ to ‘buy’.

“With the precipitous fall in the share price that overshot our prior PT (price target), we have reassessed our stance to understand if there is an opportunity for value,” the broker said in a note, as quoted by Reuters. Mediclinic’s share price is 4.26 percent up at 563.00p.

Shares in BAE Systems (LON:BA) are also in demand as the company noted that a new accounting standard was unlikely to have a material impact for its 2018 year and beyond. The group’s shares are changing hands 2.94 percent higher at 560.00p.

The FTSE 100 was 0.17 percent down at 7,380.79 points as of 12:41 GMT on Thursday, 30 November 2017. 

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