FTSE 100 ends slightly up on Friday but remains dovish on the weekly chart

FTSE 100 ends slightly up on Friday but remains dovish on the weekly chart
  • FTSE 100 ends slightly up on Friday but remains dovish on the weekly chart.
  • The domestically heavy FTSE 250 index closes almost flat on Friday.
  • Benchmark indices remain under pressure on the weekly chart.

The UK blue-chip FTSE 100 index ended on a slightly upbeat note on Friday helped primarily by the consumer stocks. The commodity heavy index opened at 6,147.14 and closed about 0.4% higher on 6,176.22. The FTSE 100 briefly touched an intraday high of 6,258.37 on Friday.

The domestically heavy FTSE 250 index, on the other hand, closed almost flat on Friday. The midcap index jumped more than 1% in the afternoon session but lost all of its intraday gains before market close.

Benchmark indices remained under pressure on the weekly chart

On the weekly chart, however, the benchmark indices remained under pressure as COVID-19 cases rose globally that increased risk of prolonged lockdowns and further damage to the global economy. The FTSE 100 recorded a just under 2% weekly decline while the FTSE 250 tanked over 3%. According to senior economist Ruth Gregory of Capital Economics:

“There are still big question marks over how willing households will be to go out and spend if fear of the virus lingers. And we are concerned that a second wave of unemployment will reduce the ability of households to spend. As a result, we suspect that the initial strong rebound will peter out in the second half of 2020 and that the government and the Bank of England will need to do more.”

COVID-19 has so far infected more than 300,000 people in the United Kingdom and caused over 43,000 deaths.

Compared to the respective year to date highs, both indices are still roughly 20% down. Learn more about the different stock exchanges and stock indices.

Major price actions in FTSE 100 and FTSE 250 listed stocks

In the FTSE 100 listed stocks, Reckitt Benckiser, American Tobacco, and Unilever made the headlines on Friday. Tesco (LON: TSCO) also reported an 8.7% increase in Q1 underlying sales. The British supermarket group ended about 4% up on Friday that was offset by Marston’s, that dropped 9% as it reported a £40 million hit to its sales due to the Coronavirus restrictions.

On the FTSE 250, 888 Holdings (LON: 888) took the lead with a roughly 4% intraday gain as the online gambling firm forecast upbeat core earnings. It was, however, offset by Aston Martin (LON: AML) that plummeted more than 15% as it published a weak forecast. The luxury carmaker also expressed plans of launching a share sale to boost liquidity.

By Wajeeh Khan
Mr. Khan specialises in Public Health by academia but is a trader by passion. Taking up two new hobbies of writing and trading in his teen years, he is now a professional trader and news writer with over 5 years of experience in various financial markets. Khan is passionate about bringing insightful articles to his readers and hopes to add value to their portfolios.
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