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FTSE extends streak of weekly falls

Published 19/06/2015, 17:47
Updated 19/06/2015, 17:47
© Reuters. A man smokes a cigarette outside The London Stock Exchange

© Reuters. A man smokes a cigarette outside The London Stock Exchange

By Alistair Smout and Atul Prakash

LONDON (Reuters) - Britain's top share index extended a four-week losing streak on Friday, despite edging higher to move further from a five-month low hit in the previous session.

The FTSE 100 (FTSE) closed up 2.57 points, flat in percentage terms, at 6,722.36 points. The index fell 1.1 percent this week, however, posting its fourth straight week of losses.

Shares in Hikma Pharmaceuticals (L:HIK) rose 2.7 percent, among the top FTSE risers, after Citi raised its rating on the stock to "buy" from "neutral".

Citi said that a fall of more than 25 percent in the share from highs hit in February exceeded cuts in earnings estimates, adding that valuations were now attractive.

Ashtead Group (L:AHT) advanced 1.8 percent to 1,120 pence as Exane BNP Paribas (PARIS:BNPP) upgraded the stock to "outperform" from "neutral" and raised its price target by 8 percent to 1,300 pence, traders said.

The FTSE 100 has rallied 1.3 percent after hitting a 5-month low at 6,707.88 points on Thursday.

"I would not expect this bounce to develop into anything significant," Augustin Eden, analyst at Accendo Markets, said. "Greek concerns are still keeping a lid on significant gains."

Euro zone leaders will hold an emergency summit on Monday to try to avert a Greek default. Bank withdrawals accelerated in Greece and government revenue slumped as Athens and its creditors remain deadlocked over a debt deal.

On Friday, Greek Prime Minister Alexis Tsipras said in a statement there would be a solution that would allow the country to return to growth while staying in the euro zone.

The FTSE 100 underperformed peripheral European shares in Spain and Italy. Traders said the FTSE was a "defensive" index, a status that both helped and hurt.

"The FTSE is more of a safe haven than the European markets, but I think few people believe there will be a Greek exit. While the last few sessions have been risk-off, a deal should be reached," said Mike McCudden, head of retail derivatives at Interactive Investor. "European markets will then recover more strongly, and the FTSE will continue to lag."

Outside the blue chips, telecoms provider Colt Group (L:COLT) surged 20 percent after its largest shareholder, Fidelity, offered to buy out other shareholders. The all-cash bid values the mid-cap company at about 1.72 billion pounds ($2.73 billion).

© Reuters. A man smokes a cigarette outside The London Stock Exchange

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