FTSE 100 watch: Retailers lend support to Footsie

Persimmon share price slides after group’s trading update

FTSE 100 watch: Retailers lend support to Footsie

The UK benchmark index has climbed higher in today’s session, finding support in blue-chip retailers as Wm Morrison Supermarkets (LON:MRW) posted better-than-expected Christmas sales. At the other end of the spectrum has been Persimmon (LON:PSN), whose shares have been sold off on the back of the group’s trading update.

Retailers boost Footsie

As of 12:24 GMT, the FTSE 100 index had added 28.33 points to stand 0.37 percent higher at 7,724.84, finding support in retailers following Morrisons’ results. Marks & Spencer Group (LON:MKS) is currently leading the sector higher, having gained 3.57 percent to 321.91p, while shares in Morrisons are changing hands 1.59 percent up at 230.50p.

“The Morrisons update is clearly better than expected,” said Mike van Dulken, head of research at Accendo Markets, as quoted by Reuters. “Marks has got the double benefit of both food and clothing and houseware. Next gave a good update from the clothing and the houseware section, Morrisons is giving a good update for the grocery, so perhaps Marks can benefit twofold there.”

Tesco (LON:TSCO), however, is bucking the trend with a 0.79-percent dip after the latest industry data from Kantar Worldpanel revealed that Britain’s biggest supermarket had continued to lose market share in the 12 weeks to December 31, 2017.

Persimmon shares dip

Shares in Persimmon meanwhile have been sold off after the blue-chip housebuilder reported in a trading update that it expected that its pre-tax profits for the year ended December 31, 2017, would be ‘modestly’ ahead of market consensus. Persimmon’s share price currently stands 1.16 percent lower at 2,716.00p.

The FTSE 100 was 0.38 percent up at 7,726.14 points as of 12:35 GMT on Tuesday, 09 January 2018.

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