The UK benchmark index has slipped into the red in today’s session, retreating from record highs, pressured by a selloff in house-builders. Micro Focus (LON:MCRO) is also weighing on the blue-chip index after the company warned on revenues.
FTSE 100 subdued
As of 12:33 GMT, the Footsie had given up 9.91 points to stand 0.13 percent lower at 7,714.33. The blue-chip index has started the week on the back foot, pressured by a drop in house-builders whose shares have been sold off after data showed that UK house price inflation had slowed sharply last year as compared with 2016. Taylor Wimpey (LON:TW) is currently leading the sector lower, having given up 1.18 percent to 208.70p.
The FTSE 100 is also underperforming other European indices amid ongoing worries over the UK economy.
“Happy bullish year EU (27 that is, not the other one),” Bank of America Merrill Lynch analysts pointed out, as quoted by Reuters.
Micro Focus shares tank
Shares in Micro Focus meanwhile have taken a big hit after the company warned of lower revenues in the 12 months to October, following a disappointing sales performance at its recently acquired HPE software business. News that Mike Phillips, currently CFO, will move to the new role of Director of M&A, to be succeeded by Chris Kennedy at the top finance job, has also failed to cheer up investors.
City A.M. reported that the boardroom shake-up was labelled a ‘worry’ by Accendo Markets head of research Mike van Dulken. Micro Focus’ shares are currently changing hands 16.84 percent in the red at 2,147.15p.
The FTSE 100 was 0.20 percent down at 7,708.86 points as of 12:53 GMT on Monday, 08 January 2018.