FTSE retreats after strong rally

The FTSE 100 pared back some of yesterday’s big rally that powered it beyond the 7,000 mark for only the second time in its long history. The index stood at 7,047.

The mid cap index fell from its all-time high of 18,342 by 0.6% to 18,235.

Commodity stocks fell despite a recovery in metal prices, as broker reports for Randgold Resources (RRS), Fresnillo (Fresnillo) and Polymetal (POLY) stunted investor confidence.

West Texas Intermediate (WTI) crude oil jumped 1.7% to $49.54 and Brent crude oil increased 1.8% to $51.80 per barrel, respectively.

Gold glittered at $1,272 per ounce and copper climbed 0.4% to $4,784 per tonne.


Tesco (TSCO) set out plans to increase its profitability in the next three years, after reporting a 60% rise in first half profit and further UK underlying sales growth. Shares in the firm climbed 12.7% to 212.6p.

Sainsbury (SBRY) and Morrison (MRW) rallied 1% higher on the back of the positive update.

The UK service sector continued its recovery following the shock referendum result as the Purchasing Managers’ Index stood at 52.6 in September, which was slightly lower than 52.9 in August.

The British Retail Consortium said overall shop prices declined to 1.8% in September from 2% in August.


Fresnillo (FRES) dropped 1.7% to £16.95 after Deutsche reaffirmed its ‘sell’ recommendation and raised its share price target from £12.10 to £12.90.

The broker also reaffirmed a ‘hold’ rating for Randgold Resources (RRS), pushing it 2% lower to £71.82.


Mining group Centamin (CEY) was flat after revealing production for the full year will be at the top end of the guidance range after reporting increases during the third quarter as throughput levels remain above its internal targets.

Barclays (BARC) announced a group of investors in insurer Hastings (HSTG) are to sell a 7% stake in the company via a share placing. The group of investors selling the shares is said to comprise Hastings Investco. Hastings shares dived 4.3% to 218.6p.


Shares at Topps Tiles (TPT) cracked under pressure following a warning of weakening trading conditions as it moved into the fourth quarter. It said revenue for the year is anticipated to come in within the region of £215m, compared to £212m reported the year before. Investors were concerned, causing the share price to slump 7.2%.

StratMin (STGR) made an investment of $50,000 in a joint venture company for a collaboration between StratMin and Tirupati for the Vatomaina project.

Shares in mining group Premier African Minerals (PREM) jumped 23% to 0.4p as tests revealed significant tonnage of tungsten material at its RHA project in Zimbabwe.

Investors rallied behind Domino’s Pizza sub-franchiser DP Poland (DPP) following its latest growth funding cash call. DP Poland raised £3.2 million at 48p per share, demonstrating the market’s strong appetite for the investment. The stock rose 13.8% to 55.3p.

Story provided by StockMarketWire.com


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