Proactive Investors -
- FTSE 100 nine points higher at 8,240
- JD Sports results fail to impress
- Government slashes NatWest stake
The morning so far
JD Sports (LON:JD) was among the worst-performing FTSE 100 stocks this morning.
The high-street retailer hit full-year sales targets but undershot on profits; the latter proved a sticking point for the market, with the stock getting slammed 11% lower in opening trades.
Paddy Power owner Flutter (LON:FLTRF), which is in the process of moving its primary listing stateside, fell over 9%, extending a slump following a recent betting tax bill passed in Illinois.
Primark owner Associated British Foods PLC (LON:ABF) shares are not responding well to news that controlling shareholder Wittington Investments has cut its stake in the company. Shares were off 3.1%.
Ocado Group PLC (LON:OCDO), St James’s Place plc and Burberry Group PLC (LON:BRBY) were also among the biggest fallers.
National Grid PLC (LON:NG) has switched to recovery mode following a recent slump due to a discounted fundraise. The electricity and gas supplier added 1.8% in opening trades.
British Gas owner Centrica PLC (LON:CNA) was also on the move, validating Barclays’ recent assertion that the stock is oversold. Shares added 3.3% this morning.
Better-than-expected house price data failed to move the needle for housebuilding stocks.
Monthly house prices in the UK grew by 0.4% in May 2024, marking a reversal from a 0.4% decline in April and exceeding the market consensus of a 0.1% gain.
Yet housebuilding blue chips Persimmon (LON:PSN) and Taylor Wimpy were slightly down.
Elsewhere in company news, Nationwide is facing a competition probe into its Virgin Money (LON:VMUK) takeover, while the government has sold down its stake in NatWest by another £1.24 billion.
Nationwide to face competition probe over Virgin Money takeover
The Competition & Markets Authority (CMA) has launched an investigation into Nationwide Building Society’s £2.9 billion takeover of Virgin Money.
Nationwide’s surprise bid for the bank has already proved controversial, with some Nationwide members staging a revolt over the deal, while analysts consider the 220p-per-share offer opportunistic.
Now, the CMA is considering whether the merger “will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
The regulator is calling for comments from the public, with a window open until 24 June.
FTSE 100 inches higher
The blue-chip index added nine points to 8,240 in opening exchanges, following on from yesterday’s 48-point gain.
Top morning risers include Centrica PLC, National Grid PLC and GSK PLC (LON:GSK), while the biggest fallers include betting companies Flutter and Entain (LON:ENT), JD Sports and Primark owner ABF.
8.04am: Government reduces NatWest stake by another £1.24 billion
The Treasury has sold £1.24 billion worth of shares back to NatWest Group PLC (LON:NWG), bringing the government’s stake down from 27% to 22.5%.
It comes after the government announced an expected delay in the eagerly awaited retail offer due to Prime Minister Rishi Sunak announcing an election set for 4 July.
The Treasury has been steadily selling down the government’s stake in the bank that it acquired as part of a bail-out package following the Global Financial Crisis.