50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

FTSE declines, U.S. deal boosts GVC

Published 30/07/2018, 10:08
© Reuters. FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain
UK100
-
BP
-
SHEL
-
MRW
-
RIO
-
AAL
-
HSX
-
MGM
-
HG
-
FTMC
-
GLEN
-
SNR
-
ENT
-
IBST
-

By Kit Rees

LONDON (Reuters) - Britain's top share index declined on Monday as big miners and energy stocks fell, though investors welcomed GVC's U.S. betting deal with MGM Resorts.

The blue-chip FTSE 100 (FTSE) index was down 0.3 percent at 7,679.86 points by 0852 GMT, in line with a broader decline among European stocks at the start of a week where central bank policymaking will be in focus.

Shares in GVC Holdings (L:GVC) were a bright spot, however, jumping 5 percent to the top of the index after the British gambling company agreed a joint venture with U.S. hotel and casino operator MGM Resorts International (N:MGM) to set up an online betting platform in the United States. [nL4N1UQ2RB] [nL5N1UQ1HU]

GVC's shares hit a record high and were on track for their best day since mid-May.

"A 50/50 JV would enable GVC to benefit from a much larger profit pool in future, and any initial operating losses would likely be compensated for by future market share gains," analysts at Berenberg said in a note.

Elsewhere, shares in Morrisons (L:MRW) were boosted by an upgrade from UBS to "buy" from "neutral", sending the stock 2.1 percent higher.

More broadly, a decline across materials stocks was the biggest weight. Shares in miners Rio Tinto (L:RIO), Glencore (L:GLEN) and Anglo American (L:AAL) all fell 0.9-1.3 percent as the price of copper declined after economic data which may indicate slowing growth in top metals consumer China. [MET/L]

Heavyweight oil stocks BP (L:BP) and Royal Dutch Shell (L:RDSa) were also on the back foot, down 0.2 percent and 0.4 percent respectively.

Earnings reports were the main focus among smaller stocks, with brickmaker Ibstock (L:IBST) the biggest mid-cap (FTMC) faller. It was down more than 11 percent after the company said it expects first-half core earnings to fall and warned of lower-than-expected brick output in the second half of the year. [nL4N1UQ30W]

Hiscox (L:HSX) and Senior (L:SNR) were at the top of the index, up around 9 percent after both companies gave updates.

© Reuters. FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain

Shares in underwriter Hiscox hit a record high after its first-half earnings beat expectations, boosted by higher premiums, while engineering firm Senior said its full-year guidance was unchanged. [nL5N1UQ1RD]

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.