FTSE 100 watch: Footsie steady despite fresh trade concerns

SSE share price slumps as utility warns on profits

FTSE 100 watch: Footsie steady despite fresh trade concerns

The UK benchmark index has climbed marginally higher in today’s session, with investors shrugging off the latest trade tensions between the US and China. SSE (LON:SSE) meanwhile has been one of the most notable FTSE 100 fallers after the company warned of a fall in profit.

FTSE 100 steady

As of 12:16 BST the FTSE 100 had added 7.79 points to stand 0.11 percent higher. The blue-chip index has been steady despite China’s move to request permission from the World Trade Organisation to sanction the US.

“Optimism has returned across indices, after dip buyers stepped up to the plate yesterday,” Chris Beauchamp, market analyst at IG, commented in a note.

Individual movers

In individual stock news, shares in SSE have come under pressure after the company said that it expects its adjusted operating profit for the six months to September 30 to be around half of that delivered in the same period last year amid still and warm weather, as well as high gas prices.

“It is very rare to see a profit warning from a utility company as they are meant to have fairly predictable income streams [...] Ultimately it is a good reminder that even seemingly defensive companies still have operational and regulatory risks,” said Russ Mould, investment director at AJ Bell, as quoted by Reuters. SSE’s share price is 8.04 percent down at 1,150.00p.

Wm Morrison Supermarkets (LON:MRW) meanwhile has been steady, having added 0.26 percent to 267.85p, despite prospects for an equal pay claim which could cost it an estimated £1 billion if successful.

The FTSE 100 was 0.19 percent up at 7,287.19 points as of 12:42 BST on Wednesday, 12 September 2018.

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