Marks and Spencer drags down FTSE
Shares in Marks & Spencer fell nearly 19% today after its worst Christmas trading figures for nearly two years heralded a miserable session for the FTSE 100 Index.
The retail giant saw £1.6bn (€2.1bn) wiped off its value following the drop of 94.25p to 409.25p – nearly half the 749p high seen in the summer and the lowest price for more than two years.
The plunge dragged the rest of the retail sector lower, and with investors also unnerved by a 2% drop on Wall Street overnight, the Footsie closed 83.8 points down at 6272.7.
M&S, led by newly-knighted chief executive Stuart Rose, revealed a 2.2% drop in third quarter like-for-like sales.
After the share price plunged, Rose spent £1m (€1.3m) buying back stock in the company with three other directors also splashing out nearly £300,000 (€400,000).
But his trading update did little for confidence ahead of tomorrow’s statement from Sainsbury’s, with shares in the supermarket chain down 5% or 19.5p to 365p. Tesco, which is due to report figures next week, was 23.25p lower at 418.75p, while Morrisons stood 2% down, or 5.25p to 307.25p.
The bad sentiment affected other retailers, with Argos owner Home Retail Group down 6% or 17.25p to 268.5p, Next 76p lower at 1331p and Kingfisher off 10.9p to 115.3p. Carphone Warehouse also lost more than 11% or 38.25p to 299.75p.
Elsewhere, holiday firm Tui Travel lost 14%, or 26.25p to 218.75p after its German parent announced the sale of a 9% stake in the business.
And oil giant BP added to the gloom, losing nearly 4%, or 23p to 610.5p after market talk – later denied by the oil major – that BP had guided analysts to reduce their fourth quarter profit forecasts.
Frankie & Benny’s operator Restaurant Group led the fallers board in the FTSE 250 Index, down 32% after it said like-for-like sales slowed to 1% in the fourth quarter of the year, from the average of 7% seen in the previous three quarters.
Shares slid 55.75p to 119p, while JD Wetherspoon followed suit with a decline of 18.5p to 314.25p.
Low-cost airline easyJet fell for a second successive session, down 36.5p to 423.75p.
Back in the FTSE 100 Index, FirstGroup featured on the blue chip risers board after revealing a 10% increase in its rail revenues between October and December. Shares in the group – which introduced inflation-busting price hikes across its four rail franchises last week, were up 13p to 714p.
Top flight defensive stocks like GlaxoSmithKline and AstraZeneca also remained in positive territory, with Glaxo up 24p to 1385p, Astra ahead 67p to 2301p and Shire 28p stronger at 1167p.
The four biggest risers were Lonmin, up 118p to 3380p, BAE Systems up 15p to 507p, AstraZeneca up 67p to 2301p, and Shire adding 32p to 1171p.
The four biggest fallers were Marks and Spencer down 94.25p to 409.25p, Tui Travel off 36.25p to 218.75p, Carphone Warehouse down 38.25p to 299.75p, and Kingfisher down 10.9p to 115.3p.
