FTSE 100 watch: Footsie subdued as investors digest mixed results
The UK benchmark index has fallen marginally into the red in today’s session, with investors focusing on a string of corporate updates. Smith & Nephew (LON:SN) has been one of the biggest FTSE 100 fallers today after the group posted its half-year report.
As of 12:14 BST, Britain’s blue-chip index had lost 12.19 points to stand 0.29 percent lower at 6,730.59, pressured by disappointing results.
“The FTSE 100 is seeing some weakness as earnings from some heavyweight companies have disappointed. Given the recent run higher […], it would not be surprising to see a further pullback in the next sessions,” said Jawaid Afsar, senior trader at Securequity, as quoted by Reuters, adding that further upside could also be on the cards, with 6,900 a target in the next few weeks.
Smith & Nephew’s share price has fallen 4.31 percent to 1,244.00p after the company said that conditions in China and the Gulf States remained challenging.
“Risks to the S&N investment case include commoditisation in the orthopaedic and reconstructive surgery markets, medical device regulation and M&A risk,” Brian White at Cantor Fitzgerald noted, as quoted by the Guardian.
A drop in heavyweight Royal Dutch Shell (LON:RDSA) is also weighing on the blue-chip index, as the Anglo-Dutch oil major posted a 72-percent drop in second-quarter earnings, with weak commodity prices and costs related to the acquisition of BG Group weighing on the company performance. Shell’s shares are currently 3.62 percent worse off at 1,969.50p.
At the other end of the spectrum has been Rolls-Royce (LON:RR), whose shares have spiked 14.01 percent to 834.55p after the engine maker revealed a better-than-expected first-half profit.
**The FTSE 100 index was 0.23 percent down at 6,735.11 points as of 12:28 BST on Thursday, July 28, 2016.**