FTSE 100 watch: Footsie subdued as Trump wins White House race

on Nov 9, 2016

The UK benchmark index has fallen into negative territory in today’s session, following Republican Donald Trump’s victory in the race for the White House. In individual movers, J Sainsbury (LON:SBRY) has tumbled to the bottom of the FTSE 100 leaderboard after updating investors on its quarterly performance.

As of 12:31 GMT, the Footsie had fallen 28.28 points to stand 0.41 percent lower at 6,814.85, having opened about two percent lower, amid news that Donald Trump has defeated Hillary Clinton in yesterday’s election. The index, however, has recovered some ground following the initial slump, finding support in pharma stocks. Hikma Pharmaceuticals (LON:HIK) is leading the sector higher, having jumped 6.31 percent to 1,768.00p.

“I think the market over-reacted slightly this morning,” John Moore, advisory investment manager at Berkeley Capital, told Reuters. “I think Trump is pro-business. The thing is, looking towards the FTSE, there are several stocks that will benefit from a Trump victory, such as the pharmaceuticals sector. Hillary Clinton wanted to impose tighter regulations, whereas Trump is opposed to that.”

Precious metals miners Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) have also advanced today, with Trump’s victory fuelling demand for gold. Randgold’s share price is 8.05 percent better off at 7,320.12p, while shares in Fresnillo are currently changing hands 10.06 percent higher at 1,761.00p.
“Gold was understandably the rare-winner this morning, rising 2.5 percent with plenty more growth likely to come in the next few days and weeks,” Connor Campbell at Spreadex said in a note.
At the other end of the spectrum has been Sainsbury’s which has lost ground after unveiling a dip in like-for-like sales and underlying profits in the third quarter. Sainsbury’s shares are currently 4.07 percent down at 245.10p.
**The FTSE 100 index was 0.26 percent down at 6,825.48 points as of 12:46 GMT on Wednesday, November 9, 2016.**

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