FTSE 100 watch: Footsie pauses after Trump-inspired rally

on Mar 2, 2017

The UK benchmark index has been little changed in today’s session, taking a breather after yesterday’s rally, fuelled by US President Donald Trump’s speech to Congress. In individual movers, Capita (LON:CPI) has slumped to the bottom of the FTSE 100 leaderboard after posting results for ‘a challenging year’.

As of 12:30 GMT, Britain’s blue-chip index had lost 2.47 points to stand 0.03 percent lower at 7,380.43. The index has been little changed following yesterday’s rally which saw it post a record high.
“After the triumphant return of the Trump rally on Wednesday things have dramatically quietened down this morning, investors exhausted from yesterday’s record-breaking run,” Connor Campbell at Spreadex commented in a note. “Nearly everything was effectively flat after the bell, a sense of ‘what now?’ hanging over the market.”

In the absence of major macroeconomic developments, investors have focused on several corporate releases. Capita’s share price has fallen 8.67 percent to 516.00p after the troubled outsourcing group posted a drop in full-year profits. The company further announced that its chief executive Andy Parker will step down this year.
Capita’s “full year results […] appear close to our downgraded expectations. However, the consequences of recent events are set to continue to impact the group in the current year and we remain cautious,” Shore Capital analyst Robin Speakman said, as quoted by Reuters.
At the other end of the spectrum has been ConvaTec Group (LON:CTEC), whose shares have been in demand after the medical products and technologies company posted a rise in full-year revenues and profits. ConvaTec’s share price currently stands 5.67 percent higher at 257.20p.
**The FTSE 100 index was 0.05 percent down at 7,378.93 points as of 12:38 GMT on Thursday, 02 March 2017.**

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