FTSE 100 watch: Footsie little changed as tech concerns subside

on Jun 13, 2017

The UK benchmark index has been little changed today, with the previous session’s tech selloff losing steam. In individual movers, Ashtead (LON:AHT) is underperforming the FTSE 100 after updating investors on its fourth-quarter performance.

As of 12:29 BST, the Footsie had lost 1.77 points to stand 0.02 percent lower at 7,510.10, following yesterday’s dip fuelled by a selloff in technology stocks. Micro Focus (LON:MCRO), which was one of the previous session’s biggest fallers, has recovered 0.21 percent to 2,409.20p, slightly outperforming the broader market.
“Despite recent weakness, we are beginning to see signs that point towards a recovery of sorts for both European and US markets,” Joshua Mahony at IG commented in a note, adding that the FTSE 100’s ability or inability to break through the key resistance level of 7,555 points “is going to be a major determinant of the price action as the week goes on”.

In individual stock news, Ashtead’s share price has lost 1.46 percent to 1,617.00p even as the company reported a rise in rental revenue in the quarter ended April 30.
“Ashtead sees good markets with a seasonal uplift in volumes, and we see little change to consensus,” UBS analysts said, as quoted by Reuters. “Trading remains strong, but without guidance upgrades we believe [the] valuation looks exposed.”

Merlin Entertainments (LON:MERL) has been another prominent Footsie faller after saying that the Westminster attack in March had resulted in softer domestic, day-trip market. The company also noted that it was “cautious on trends in foreign visitation over the coming months” following the subsequent terrorist attacks in Manchester and London. Merlin’s share price is currently 1.62 percent worse off at 494.84p.
**The FTSE 100 was 0.06 percent down at 7,507.72 points as of 12:40 BST on Tuesday, 13 June 2017.**