FTSE falls as Berkeley leads builders lower and ex-dividends hit index

Discussion in 'Market News' started by Lily, Aug 11, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    House price survey hits builders but Coca-Cola bottling group pleases after update

    Leading shares are heading lower but the bulk of the fall is due to a host of companies going ex-dividend.

    Oil companies are lower as crude prices continue to slide, following an unexpected rise in US stocks on Wednesday, a rise in Saudi Arabian production and few hopes of any agreement to cut output at the next Opec meeting. So BP is down 2.2p at 420.80p and Royal Dutch Shell A shares have slipped 56.5p to £18.60 as its shares went ex-dividend.

    The FTSE 100 index has opened in the red this morning as a number of stocks go ex-dividend and the latest drop in the price of oil drags on energy stocks. We may see some profit taking following recent gains but with a dearth of major economic releases the to-ing and fro-ing of late looks set to continue as investors look to corporate earnings as the key driver.

    Overall, a profit beat but visibility remains very challenging and whilst management expect a stronger second half and adverse foreign exchange guidance retained rather than deteriorated, we retain the view that there still could be further pressure on forecasts and the lack of visibility is not reflected in the valuation.

    Overall, a disappointing update with store like for likes entering negative territory and online, primarily Getting Personal, flat. Some reassurance from roll-out and commentary on special returns, but we will need to see improved growth moving into the second half to give greater confidence on full year estimates.

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