London stocks struggled for traction on Thursday, weighed by losses for heavily weighted energy stocks and banks, with shares of Primark-owner Associated British Foods dropping after results.
The FTSE 100 index
UKX,
fell 0.2% to 7,574.93, in a week that has seen the index gain 0.4% so far. That’s as U.S. stocks climbed in early trade after another pullback, and Asian equities climbed after interest rate cuts from China. The pound
GBPUSD,
rose 0.3% to $1.3647.
Oil prices
CL00,
BRN00,
were backtracking from a run that has seen the commodity reach 2014 highs, which took the shine off shares of Royal Dutch Shell
RDSA,
RDS.A,
down more than 2% and BP
BP,
BP,
off 2%.
Banks were under pressure across the board with NatWest
NWG,
NWG,
down over 2% and Barclays
BARC,
BCS,
and HSBC
HSBC,
HSBA,
dropping over 1% each.
The biggest decliner was Associated British Foods
ABF,
down 3.5% after the multinational food processing and retailing company said revenue for the first quarter rose, but Primark sales declined, and left its full-year guidance unchanged. ABF said Primark sales from now to April are anticipated to be significantly better than those of the same period a year ago.
James Grzinic, analyst at Jefferies, remained upbeat, with a buy rating on the company. “Omicron-reduced footfall late in Q1 has impacted Primark sales less than we had feared, hopefully marking the last COVID-related deterioration in sales momentum. Past periods of reduced restrictions have shown Primark’s ability to defend strong consumer attractions and double-digit margins,” said Grzinic.
Deliveroo
ROO,
shares jumped 3% after the food-delivery service reported its gross transaction value growth in 2021 was at the top end of the guidance range.
Burberry shares
BRBY,
were up a second day after the luxury retailer reported higher revenue and comparable-store sales in the third quarter of fiscal 2022.
