FTSE 100 watch: Resource stocks peg back Footsie

Just Eat share price retreats as Deutsche Back says ‘sell’

FTSE 100 watch: Resource stocks peg back Footsie

The UK benchmark index has been little changed in today’s session, pressured by a selloff in resource stocks. Just Eat (LON:JE) meanwhile has tumbled to the bottom of FTSE 100 leaderboard after analysts at Deutsche Bank trimmed their stance on the food delivery group.

Footsie little changed

As of 12:20 GMT, the FTSE 100 had given up 5.94 points to stand 0.08 percent lower at 7,218.57, having traded marginally in positive territory earlier in the session. Energy and mining stocks have been weighing on the blue-chip index today, tracking metals and oil prices lower. Fresnillo (LON:FRES) is currently the sector’s biggest faller in percentage terms, having given up 1.53 percent to 1,219.50p.

Individual movers

In individual stock news, Just Eat has lost ground after Deutsche Bank downgraded the company from ‘hold’ to ‘sell,’ lowering its profit forecasts and price target for the shares from 830p to 630p.

“We think Just Eat’s investment plan makes strategic sense, but with substantial implementation risks, additional costs and an uncertain return,” the analysts pointed out, as quoted by WebFG News. Management hasn’t committed to a particular level of spend beyond 2018 but we think investment will continue at a rapid rate.” Just Eat’s share price is 3.50 percent worse off at 760.80p.

Shares in GKN (LON:GKN) meanwhile have been volatile, after Melrose Industries (LON:MRO) cranked up its hostile takeover offer for the British engineering group. The FTSE 100 company said in a short statement that its board was currently evaluating the revised bid. GKN’s share price currently stands 0.02 percent lower at 435.00p, having jumped more than one percent higher in early morning trade.

The FTSE 100 was 0.04 percent down at 7,221.79 points as of 12:32 GMT on Monday, 12 March 2018.

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