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Tuesday, May 24, 2022

Britain’s FTSE falls, lead lower by Pearson and Merlin Entertainments

Britain's FTSE falls, lead lower by Pearson and Merlin EntertainmentsLONDON: Britain’s top share index edged lower on Monday after falls in Merlin Entertainments and Pearson and ahead of GDP data due later in the week, but outperformed broader European equities as battered miners staged a rebound.

The blue-chip FTSE 100 index was down 0.3 percent at 6,559.00 points by 0752 GMT. It fell 1.1 percent on Friday, with a slump in commodity shares tracking a sharp drop in metals and oil prices.

“I think what’s really affecting the FTSE at the moment is the idea that we are going to see the GDP numbers from the UK and the US this week and that could very well change any sort of risks attitude that there might be amongst investors,” said London Capital Group analyst Brenda Kelly.

Merlin Entertainments was the top faller after warning that annual profit would be about 9 percent lower than forecasts due to the effects of a rollercoaster crash. The shares tumbled as much as 7.8 percent, their worst one-day drop.

“It’s had a tough one … there might very well be an adverse impact on the profitability next year as well and that is really sending investors running for the exits this morning,” Kelly said.

Pearson also fell, shedding 2.5 percent after saying it was in talks to sell its 50 percent stake in the Economist.

On the upside, mining sector staged a rebound after a volatile week despite metals prices languishing near multi-year lows. The FTSE 350 Mining Index rose 1.5 percent.

In other gainers, Reckitt Benckiser Group added 1.9 percent after the consumer goods maker increased its full-year net revenue and margin targets.

Copyright Reuters, 2015

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