Britain’s blue-chip index has advanced today, taking cues from the US and Asia, with equity markets starting to recover following the previous sessions’ hefty selloff. Smurfit Kappa Group (LON:SKG) meanwhile has tumbled to the bottom of the FTSE 100 leaderboard after updating investors on its performance.
FTSE 100 starts recovery
As of 12:21 GMT, the FTSE 100 had added 73.01 points to stand 1.02 percent higher at 7,214.41, recovering some of the ground lost in the previous sessions during the global equities selloff prompted by inflation concerns.
“The only surprise about the current volatility is that it hasn’t happened sooner,” Richard Titherington, chief investment officer of EM Asia Pacific Equities at JP Morgan Asset Management, commented, as quoted by The Telegraph. “Normally, even in a bull market, investors should expect a sell-off of 10 per cent-plus at some point.”
In individual stock news, Smurfit Kappa has lost ground after revealing a 28-percent drop in its free cash flow in the last three months of 2017, compared to the third quarter of the year. The group’s full-year earnings per share meanwhile came in six percent lower year-on-year. Smurfit Kappa’s share price currently stands 1.22 percent in the red at 2,420.00p.
Shares in Tesco (LON:TSCO) meanwhile are underperforming the broader UK market, having given up 0.15 percent to 199.60p, after it emerged that Britain’s biggest grocer was facing a claim of up to £4 billion in back pay from thousands of mainly female shopworkers.
“Investors may take some time to really assess this as it has come out of the blue, but it appears to be a serious claim and one that clearly poses downside risks to the stock”, commented ETX Capital’s Neil Wilson, as quoted by Reuters.
The FTSE 100 was 1.14 percent up at 7,222.61 points as of 12:40 GMT on Wednesday, 07 February 2018.