FTSE 100 watch: Footsie subdued as sterling weighs

FTSE 100 watch: Footsie subdued as sterling weighs

The FTSE 100 has fallen marginally lower on the last trading day of the week, pressured by a rise in sterling. In individual blue-chip movers, SSE (LON:SSE) is outperforming the market as it inked a deal to offload one of its businesses.

FTSE 100 inches lower

As of 12:48 BST, the Footsie had lost 1.28 points to stand 0.02 percent lower at 7,343.39. The blue-chip index has been pressured by a fall in stocks with international exposure, which have retreated on the back of a stronger pound.

“The pound rallied hard in early trading with GBPUSD breaking north of 1.24. Having cleared resistance at 1.2380, as long as this holds today there is reasonably clear path to 1.2520,” Neil Wilson at Markets.com, commented, as quoted by Proactive Investors. Smirnoff and Johnny Walker maker Diageo (LON:DGE) is currently leading exporters lower, having given up 3.21 percent to 3,273.00 points so far today.

Individual Footsie movers

In individual blue-chip movers, SSE shares have been in demand as the blue-chip electricity provider announced that it had inked a deal to sell its Energy Services business for an enterprise value of £500 million, comprising £400 million in cash and the remaining £100 million in loan notes. The FTSE 100 group said that it will use the net proceeds of the transaction to reduce its net debt. SSE’s share price is 1.60 percent up at 1,184.60p.

London Stock Exchange Group (LON:LSE) is also outperforming the broader UK market as it announced that it was rejecting the Hong Kong Exchanges and Clearing’s tie-up proposal, saying that it had ‘fundamental concerns’ and that it saw” no merit in further engagement”. LSE’s shares are changing hands 1.85 percent higher at 7,386.00p.

The FTSE 100 was 0.05 percent up at 7,348.49 points as of 13:13 BST on Friday, September 13, 2019.

By Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

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