Boohoo jumps as FTSE nears three-week high

By City A.M.

THE UK’S top stock index held near a three-week high yesterday as investors took profits from a recent rally in oil majors after crude prices hit a four-year peak, while retailer Boohoo jumped after a strong set of earnings.

The FTSE 100 ended 0.1 per cent up, as European markets edged higher ahead of a widely expected rate hike from the US Federal Reserve last night.

Boohoo shares jumped 11 per cent after the fashion retailer raised its full-year sales forecast and first half profit increased 22 per cent.

Miners Randgold Resources and Fresnillo were among the leading FTSE losers, both down 2.5 and 3.6 per cent respectively, while oil majors Shell and BP also lost ground.

Mid-cap Indivior declined 16 per cent after the drug maker revised its fullyear earnings guidance as it sharply lowered its revenue expectation for opioid addiction drug Sublocade.

AA fell 13 per cent after the roadside recovery and insurance group said extreme weather had raised its costs and hit first-half core profit.

Concerns about the progress of Brexit negotiations dogged sentiment with British car makers triggering some contingency plans by certifying models in Europe.

British stocks, however, remained supported among value-hunters because of their relatively cheap valuations compared to other major equity markets.

At around four per cent, Britain offers a higher dividend yield than markets such as Europe and the United States.

On a valuation basis, the 12-month forward price-earnings multiple is 13 per cent below global equities while the price-to-book ratio for the index is about a fifth below its long term average, according to Thomson Reuters data.

As few as 630 UK-based finance jobs have been shifted or created overseas with just six months to go before Brexit, a far lower total than banks said could move after Britain’s surprise 2016 vote to leave the European Union, according to a Reuters survey.

TOP RISERS 1. Tui up 3.3 per cent 2. NMC Health up 3.19 per cent 3. Croda Intl. up 2.48 per cent TOP FALLERS 1. Fresnillo down 3.65 per cent 2. Melrose down 2.66 per cent 3. Randgold Res. down 2.53 per cent

This article provided by NewsEdge.