FTSE 100 watch: Company news and weaker pound prop up Footsie

on Oct 23, 2017
Updated: Mar 11, 2020

The UK benchmark index has kicked off the week in positive territory, boosted by a drop in the pound, as well as corporate news. Mediclinic (LON:MDC), however, is bucking the trend after revealing that mid-cap Spire Healthcare had rebuffed its takeover offer.

Upbeat start to week

As of 12:28 BST, the Footsie had added 15.62 points to stand 0.21 percent higher at 7,538.85. The index has found support in a drop in sterling, with the pound retreating following weekend reports on growing divisions in the ruling Conservative party over Brexit, as well as uncertainty over the future path of UK interest rates.

Reuters quoted Credit Suisse as saying in a note that despite the UK market benefiting from a global cyclical upturn, it faces significant economic and political challenges. 

“The UK is obviously that much more sentiment driven, Brexit focused and currency focused,” Pierre Bose, head of European equity strategy at the Swiss bank, commented, as quoted by the newswire, pointing to slower economic growth, inflation and an absence of wage growth weighing on the market.

Individual movers

In individual movers, Mediclinic has tripped to the bottom of the blue-chip leaderboard after revealing that Spire had rebuffed a full takeover offer. The FTSE 100 group is Spire’s biggest shareholder. Mediclinic’s share price is currently 2.11 percent down at 627.00p.

At the other end of the spectrum has been CRH (LON:CRH) has been another prominent FTSE 100 riser, having added 2.04 percent to 2,847.00p, after moving closer to the acquisition of Ash Grove Cement.

The FTSE 100 was 0.14 percent up at 7,533.77 points as of 12:56 BST on Monday, 23 October 2017.