THE UK’s benchmark FTSE 100 stock index slipped on Friday (Sep 20), registering weekly declines, after hotter-than-expected retail sales data from the economy, while a rise in the British pound pressured export-oriented companies.
The FTSE 100 fell 1.2 per cent, while the more domestically-focussed midcap index lost 1.6 per cent. Both indexes marked weekly losses and their biggest one-day fall in almost seven weeks.
British retail sales rose by a stronger-than-expected 1 per cent in August, beating forecasts for a monthly rise of 0.4 per cent and growth in July was revised up, data showed.
The data provided an extra boost to the pound’s upbeat trend, which has risen to its highest level against the US dollar since 2022 this week after the Federal Reserve cut rates by 50 basis points, while the Bank of England kept rates on hold at its meeting on Thursday.
Friday’s declines were broad based, with all major sector indexes trading in the red, led by a 5 per cent drop in the personal goods index.
Burberry lost 3.5 per cent after brokerage Jefferies cut its rating on the stock to underperform from neutral, citing continued difficulties for the luxury goods sector.
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Further dragging the personal goods index, Dr Martens slumped over 19 per cent after a block trade was priced at 57.85 pence per share, lower than its last close of 64.10 pence.
Private investment company Bridgepoint Group lost 11.4 per cent on the news of shareholder share sale at a possible discount.
Precious metal miners were the only outliers, gaining 0.2 per cent after gold prices soared above the US$2,600 level for the first time, extending a rally boosted by bets for further US interest rate cuts, and tensions in the Middle East.
UK stocks continue to lag both US and eurozone equities this year, with both the Fed and European Central Bank expected to ease rates faster than the BOE. REUTERS
