FTSE 100 Eases After Gains as Imperial Brands Sinks on Job Cut Plans
Market Performance and Key Movers
Aug 10 (Reuters) - London's stock indexes eased on Monday, taking a breather after last week's gains, with shares of Imperial Brands dropping on a report of planned job cuts and as investors awaited economic data later in the week.
The blue-chip FTSE 100 closed down 0.4% at 10,862.50 points, while the midcap FTSE 250 slipped 0.4% to 24,744.54 points after logging a record closing high in the previous session. Both indexes notched their fourth consecutive week of gains on Friday.
Major Decliners
Imperial Brands and British American Tobacco
• Tobacco company Imperial Brands sank 4.6% as it prepared to cut thousands of jobs in key markets to reduce costs, according to a report by Bloomberg News. It became the biggest loser in the blue-chip index, while rival British American Tobacco also fell 4.4%.
Coca-Cola HBC
• Bottler Coca-Cola HBC slid 4.8% after brokerage BNP Paribas cut its rating to "neutral" from "outperform".
Household Goods & Home Construction Index
Vistry's Shares and Allianz Trade Impact
• The household goods & home construction index slipped 2.6%, weighed down by a 12% plunge in affordable homebuilder Vistry's shares after the Financial Times reported that credit insurer Allianz Trade could reduce the cover it extends to Vistry's suppliers by up to 70%, a move that could exacerbate a cash flow squeeze.
Major Gainers
Energy Stocks
• Energy stocks firmed about 1%, as oil prices jumped 3% after Iran said the U.S. must lift sanctions on Tehran, pay reparations and meet a number of other conditions before the Strait of Hormuz is reopened. [O/R]
Mining and Trading Platforms
Glencore
• Mining giant Glencore gained 2.1% after Barclays raised its price target to 650 pence from 635 pence following strong results last week.
Plus500
• Plus500 climbed 2.1% after the trading platform reported a rise in half-year core profit, aided by higher trading activity.
Upcoming Economic Data
• Data on Thursday is expected to show the UK economy grew 1.1% on an annualised basis in the second quarter, possibly helped by lower energy prices. British retail sales were unexpectedly strong in June, helped by spending related to warm weather and the World Cup.
(Reporting by Anand Gopal and Sruthi Shankar in Bengaluru; Editing by Mrigank Dhaniwala and Keith Weir)
