UK market down for third day running
THE UK stock market ended the week’s final trading session down for the third successive day as the FTSE 100 Index lost 78.4 points and closed at 5060.9.
Compass Group, the global contract catering company, topped the headline index’s leader board after reporting that organic sales in the first quarter fell by 1.7%, where analysts had expected a fall of 3%.
Management stated that the pipeline of new business remains strong and the shares climbed 5.2% to end the session at 450p.
The FTSE 100 had at one stage pared losses after the release of the US jobs data, but soon fell back yet closer to the key 5000 mark amid concerns that debt-laden countries such as Greece and Portugal would struggle to fund their national deficits.
The dollar gained ground to 1.56 against the pound, while sterling was steady at 1.14 against the euro.
In London, banks were among those hit hardest in the sell-off as figures revealed the sector has a near £100bn exposure to the struggling European economies.
BG Group was in focus after delivering its final results which were better than analysts had expected.
Despite this the shares fell by 3.2% and closed at 1112p.
In The Journal 40, housebuilder Bellway was in focus after the company released a statement on trading for the first six months of the year.
Completions rose by 12%, the order book is up by 32% at £390m and the group has secured 92% of its full year target for sales and reservations.
The company also has a robust balance sheet, with £61m of cash and has begun to re-invest in land.
Operating margin for the six month period fell to 6% but it is expected to rise to nearer 7% over the full year.
Bellway shares traded 3.6% lower and closed at 732p.
Fergus.westwood@brewin.co.uk
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