FTSE 100 watch: Footsie little changed as weak pound lends support

on May 8, 2018

The UK benchmark index has been little changed in London in today’s session, with a rise in the pound partly helping offset caution ahead of US President Donald Trump decision on Iran’s nuclear deal. In individual movers, Associated British Foods (LON:ABF) is outperforming the FTSE 100 following upbeat analyst comments.

FTSE 100 little changed

As of 12:25 BST, the FTSE 100 had added 0.47 points to stand at 7,567.61, flat in percentage terms. The blue-chip index has found support in a weaker pound which tends to fuel demand for stocks with international exposure.

“The (FTSE) index is […] supported by a still depressed GBP while USD remains strong, both currencies at opposite ends of the spectrum of rate hike expectations ahead of their next policy meetings, the BoE this week and the Fed in June,” Accendo Markets analysts said in a note, as quoted by Reuters.

AB Foods shares in demand

In individual movers, shares in AB Foods have been in demand UBS lifted its rating on the company to ‘buy’ after the broker’s analyst Andrew Hughes and his team concluded that there is plenty of room for the group’s Primark chain to continue to grow.

“The results suggest around 80% upside in store numbers in the UK/Europe, which should keep space contribution close to 10% for another 5-10 years,” Hughes said in a note to clients, as quoted by Proactive Investors. “We [also] think the share price has overreacted to the H1 space slowdown.” AB Foods’ share price currently stands 1.59 percent higher at 2,749.00p.

The FTSE 100 was 0.04 percent up at 7,570.45 points as of 12:34 BST on Tuesday, 08 May 2018.