Shares rise in London despite poor performance from supermarkets

On Wall Street, both the S&P 500 and the Dow Jones were trading flat a short while after markets in Europe shut.

August Graham
Friday 16 June 2023 17:28 BST
The FTSE 100 closed up slightly on Friday (Jonathan Brady/PA)
The FTSE 100 closed up slightly on Friday (Jonathan Brady/PA) (PA Archive)

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London’s top shares eked out another small gain, helping the FTSE end the week on 7,643 points.

The gains were led by some of the UK’s biggest energy companies, which managed to outweigh some of the pressure put on supermarkets stocks, apart from Ocado which soared.

By the end of the day, the FTSE 100 had risen 0.2%, or 14.46 points, to 7642.72. Its European cousins fared even better with Germany’s Dax up 0.5% while France’s Cac 40 rose 1.5%.

On Wall Street, both the S&P 500 and the Dow Jones were trading flat a short while after markets in Europe shut.

“European markets have ended the week on a positive note as expectations of more stimulus from China, and the belief that the current cycle of rate increases is close to coming to an end, has seen the Dax push up to another new record high,” said CMC Markets analyst Michael Hewson.

“The FTSE100 has also enjoyed its best weekly performance since April with this week’s winners being the likes of Glencore and Ocado, while concern over higher interest rates has acted as a drag on house builders, with Barratt and Taylor Wimpey underperforming.”

During the day Tesco was one of the losers, with its shares closing down by close to 1%.

It came despite the supermarket revealing that like-for-like sales grew by 9% in the first quarter in the UK and flagging that it is seeing signs that inflation is starting to ease.

Sainsbury’s joined its rival in the red, dropping 1.2%.

Elsewhere, Travis Perkins was also heavily in the red, with the business’s shares closing down 6.3%.

The company downgraded its profit outlook for the financial year on Friday. It now expects to make around £240 million, around £32 million less than previously guided.

“The downgrade is also hitting the likes of B&Q owner Kingfisher as well as Wickes shares which are down heavily,” Mr Hewson said.

The biggest risers on the FTSE 100 were Ocado, up 31.9p to 461.9p, Centrica, up 3.25p to 118.85p, CRH, up 107p to 4,193p, British Land, up 8.3p to 343p, and Frasers, up 13p to 697p.

The biggest fallers on the FTSE 100 were Airtel Africa, down 4.6p to 124.8p, Hargreaves Lansdown, down 14.6p to 821.8p, M&G, down 3.45p to 197.25p, Glencore, down 8p to 467p, and Admiral Group, down 36p to 2,175p.

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