FTSE 100 watch: Healthcare stocks pressure Footsie after Trump speech

on Jan 12, 2017
Updated: Mar 11, 2020

The UK benchmark index has retreated in today’s session, pressured by a pullback in healthcare stocks which have been sold off in the wake of Donald Trump’s speech yesterday. A fall in Tesco (LON:TSCO) is also weighing on the FTSE 100 even as the blue-chip retailer unveiled that its sales had advanced during the crucial Christmas period.

As of 14:26 GMT, the Footsie had shed 8.09 points to stand 0.11 percent lower at 7,282.40. The blue-chip index has retreated from the record highs seen in the previous session, weighed down by healthcare stocks which have retreated after US president-elect Donald Trump commented on the need for competitive drug pricing, saying that pharmaceutical companies were “getting away with murder” by charging high drug prices, as reported by Reuters. Rare disease specialist Shire (LON:SHP) is leading other London-listed drugmakers lower, having shed 3.49 percent to 4,518.00p so far today.

Tesco’s shares meanwhile have fallen 2.16 percent to 204.30p even as Britain’s biggest retailer reported that its like-for-like sales had climbed 1.5 percent higher in the 13 weeks ended November 26, and 0.3 percent over the key Christmas period.
“That latter figure perhaps explains why Tesco fell by 2.5 percent at the start of the session, with investors slightly disappointed by its holiday showing,” Connor Campbell at Spreadex said in a morning note.

Associated British Foods (LON:ABF) has been another notable Footsie faller after revealing that its like-for-like sales at Primark had been held back by declines in Germany and the Netherlands in the 16 weeks to January 7. AB Foods’ shares are currently changing hands 3.67 percent in the red at 2,599.00p.
**The FTSE 100 index was 0.12 percent down at 7,281.79p as of 12:36 GMT on Thursday, 12 January 2017.**