9 Dec 2014
FTSE down on risk aversion, Tesco shares fall 12%
FXStreet (Mumbai) - The London’s Ftse opened lower and trades weak in line with the risk aversion seen in the Asian and other major European equity markets.
The Ftse index traded 1.36% lower at 6581.30 levels at the time of writing, compared to the previous session’s close of 6672.15 levels. The Index breadth is highly negative today with an advance-decline ratio of 6:94. The index is being driven lower by a more than 2% losses in the Ftse Oil and Gas index, Mining index, Mobile Telecom index, and Oil Equipment Services and Distributions index.
Meanwhile, shares in Tesco, the top loser so far, are down 12.57%. The shares tumbled after the troubled company warned on full year profit yet again. The company now anticipates group trading profit for the financial year ending February 2015 will not exceed 1.4 billion pounds. Shares in Morrison, Weir Group are down by more than 4% each, while shares in Agrekko and Sainsbury have declined by 3.6% each.
On the plus side, are the shares in G4 S, up 2.65%, followed by 1.5% gains in shares of Randgold. Other gainers include Land Securities, British Land, and Hammerson.
The stock prices may erase losses if the UK Industrial Production data for October prints higher than market expectation of 1.8% year-on-year.
Ftse Technical Levels
The index has an immediate support located at 6559 (Nov 3 high), under which prices may extend losses to 6446 levels (Oct 2 close). Meanwhile, resistance is seen at 6631.5 and 6672 levels.
The Ftse index traded 1.36% lower at 6581.30 levels at the time of writing, compared to the previous session’s close of 6672.15 levels. The Index breadth is highly negative today with an advance-decline ratio of 6:94. The index is being driven lower by a more than 2% losses in the Ftse Oil and Gas index, Mining index, Mobile Telecom index, and Oil Equipment Services and Distributions index.
Meanwhile, shares in Tesco, the top loser so far, are down 12.57%. The shares tumbled after the troubled company warned on full year profit yet again. The company now anticipates group trading profit for the financial year ending February 2015 will not exceed 1.4 billion pounds. Shares in Morrison, Weir Group are down by more than 4% each, while shares in Agrekko and Sainsbury have declined by 3.6% each.
On the plus side, are the shares in G4 S, up 2.65%, followed by 1.5% gains in shares of Randgold. Other gainers include Land Securities, British Land, and Hammerson.
The stock prices may erase losses if the UK Industrial Production data for October prints higher than market expectation of 1.8% year-on-year.
Ftse Technical Levels
The index has an immediate support located at 6559 (Nov 3 high), under which prices may extend losses to 6446 levels (Oct 2 close). Meanwhile, resistance is seen at 6631.5 and 6672 levels.