FTSE 100 watch: Footsie steady as Provident and WPP shares recover

on Aug 24, 2017
Updated: Mar 11, 2020

The FTSE 100 has firmed up in today’s trading, benefitting from recovery in Provident Financial Group (LON:PFG) and WPP (LON:WPP), whose shares were sold off in the previous sessions on the back of disappointing updates. A rise in CRH (LON:CRH) is also lending support to the index as the company posted a rise in half-year profits.

As of 12:35 BST, the Footsie had added 38.66 points to stand 0.52 percent higher at 7,421.31. Provident is currently leading other blue-chips higher, after the group’s shares lost more than 66 percent earlier this week, after the company unveiled yet another profit warning, scrapped its payout to shareholders and announced that its chief executive was stepping down. Provident’s share price is currently 16.80 percent better off at 772.00p.

WPP has been another FTSE 100 company to claw back losses from the previous session when the advertising giant’s shares fell after the company revised down its like-for-like revenue and net sales outlook following pressure on client spending in the second quarter.

“US ad spend might come back if Trump growth hopes are delivered, and consumer goods companies may increase spend again but structural concerns remain,” analysts at Investec said in a note, as quoted by Reuters. WPP share price is 2.39 percent up at 1,454.00p.

CRH has been another prominent blue-chip riser after reporting that its profit before tax had jumped 27 percent in the first half of the year. The company further revealed that it was divesting its Americas Distribution business for $2.6 billion, while acquiring Fels in Europe for €600 million. CRH’s share price has added 3.49 percent to 2,784.00p.

The FTSE 100 was 0.49 percent up at 7,418.47 points as of 12:50 BST on Thursday, 24 August 2017.