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London open: Stocks nudge lower as Carillion collapse sours sentiment
London stocks ticked lower in early trade on Monday, with sentiment undermined by the collapse of contractor Carillion.
At 0830 GMT, the FTSE 100 was down 0.1% to 7,774.02,while the pound was up 0.1% against the dollar at 1.3747 and flat versus the euro at 1.1256.
In corporate news, trading in the shares of Carillion was suspended after the company said it was going into liquidation.
Spreadex analyst Connor Campbell said: "The shocking collapse of Carillion, whose shares have been suspended since the company announced it was going into liquidation, appeared to pull the FTSE back from its all-time highs this Monday.
"The knock in confidence to the UK economy - Carillion employs around 20,000 people, and utilises a huge network of smaller subcontractors - likely contributed to the FTSE's 0.1% dip, a move that took the index to just below 7775 having grazed 7800 last Friday. The banking sector is one of the key weights dragging on the index, with investors perhaps concerned about the money owed by Carillion to the likes of RBS and HSBC."
Plumbing and heating company Ferguson gained as it said recent US tax cuts would provide a beneficial impact on the group's after tax earnings.
Rolls Royce slipped as it confirmed recent press speculation that it might be looking to hive-off its l'Orange unit, but clarified that the strategic review now under way would have no impact on the rest of its Power Systems arm.
Engineer GKN was on the front foot following reports that private equity firm Carlyle is considering a bid for the company, after it announced last week that it had rejected a £7bn offer from Melrose Industries. Meanwhile, Melrose was a little weaker after saying it is beginning a series of shareholder meetings to discuss the proposal.
FTSE 250 heat treatment supplier Bodycote surged after saying it now expects full year 2017 headline operating profit to be towards the upper end of market expectations as it announced that US tax changes should have a positive one-off impact.
William Hill edged higher after saying it is undertaking a review of its Australian business, as it said 2017 adjusted profits were 11% than in the previous year, surpassing forecasts of £290m, while Acacia Mining shone after the release of its fourth-quarter production figures.
In broker note action, Johnson Matthey was boosted by an upgrade to 'buy' at Berenberg, while Land Securities was lifted by an upgrade to 'overweight by JPMorgan. Barclays rose on the back of an upgrade to 'buy' at Investec.
There are no major UK data releases due on Monday but on Tuesday investors will eye the release of the latest inflation figures.
Market Movers
FTSE 100 (UKX) 7,774.02 -0.06%
FTSE 250 (MCX) 20,907.56 0.23%
techMARK (TASX) 3,545.12 0.00%
FTSE 100 - Risers
Johnson Matthey (JMAT) 3,244.00p 2.53%
GKN (GKN) 429.10p 2.17%
Ferguson (FERG) 5,558.00p 1.42%
Barclays (BARC) 197.14p 1.36%
Fresnillo (FRES) 1,455.50p 1.32%
ITV (ITV) 170.15p 1.28%
Antofagasta (ANTO) 1,045.00p 1.26%
Randgold Resources Ltd. (RRS) 7,386.00p 1.15%
Glencore (GLEN) 411.70p 1.02%
Land Securities Group (LAND) 982.30p 0.81%
FTSE 100 - Fallers
Standard Chartered (STAN) 821.80p -1.34%
HSBC Holdings (HSBA) 783.80p -1.00%
NMC Health (NMC) 3,074.00p -0.90%
GlaxoSmithKline (GSK) 1,341.80p -0.83%
Royal Bank of Scotland Group (RBS) 300.20p -0.73%
Diageo (DGE) 2,623.50p -0.66%
Vodafone Group (VOD) 227.90p -0.63%
Smith & Nephew (SN.) 1,259.50p -0.55%
Imperial Brands (IMB) 3,145.01p -0.47%
Ashtead Group (AHT) 2,096.00p -0.43%
FTSE 250 - Risers
Bodycote (BOY) 1,018.00p 6.99%
Serco Group (SRP) 101.60p 3.52%
Card Factory (CARD) 222.40p 3.44%
Vedanta Resources (VED) 936.40p 2.81%
Polymetal International (POLY) 937.60p 2.27%
Vectura Group (VEC) 118.90p 2.24%
Kaz Minerals (KAZ) 966.80p 2.20%
Hochschild Mining (HOC) 260.00p 2.12%
Centamin (DI) (CEY) 166.80p 1.77%
Acacia Mining (ACA) 197.64p 1.67%
FTSE 250 - Fallers
Moneysupermarket.com Group (MONY) 344.60p -2.79%
Dairy Crest Group (DCG) 568.00p -2.41%
PZ Cussons (PZC) 319.40p -2.20%
Weir Group (WEIR) 2,156.00p -2.18%
Savills (SVS) 954.50p -1.70%
Grafton Group Units (GFTU) 816.00p -1.09%
RIT Capital Partners (RCP) 1,984.00p -1.05%
RDI Reit (RDI) 35.65p -0.97%
Shaftesbury (SHB) 1,005.33p -0.95%
HICL Infrastructure Company Ltd (HICL) 157.70p -0.88%