Dividends in key stocks cause 0.2% fall in FTSE in quiet session

<p>A number of heavyweight firms including BP, Royal Dutch Shell and GlaxoSmithKline going ex-dividend took 19 points off the FTSE 100 Index today, forcing it […]</p>

A number of heavyweight firms including BP, Royal Dutch Shell and GlaxoSmithKline going ex-dividend took 19 points off the FTSE 100 Index today, forcing it lower on what otherwise has been a quiet session where traders have paused for breath.

Generally we have seen a lack of investor action today with only individual equity stories triggering some of the more volatile share price movements. The LSE’s deal to acquire with the Toronto Exchange owners TMX Group will take the headlines as the major story of the day. Indeed shareholders appear to have lapped up the news, buying strongly into LSE’s shares, forcing prices as high as 950p, a level not seen since September 2008.

We have also seen traders sell out of Reckitt Benckiser shares after a disappointing fourth quarter earnings whilst CSR shares saw a high degree of buyer demand after reporting figures that beat market expectations.

Traders are have also been pleased to hear Ben Bernanke reaffirm support for the current QE2 programme after stating that US Unemployment remains high and at an uncomfortable level. The Fed Chairman also stated his belief that inflation was low and this triggered dollar weakness and investors into buying sterling, which charged higher to $1.6110 as a result. The sentiment from Ben Bernanke has also lifted equities somewhat in the US and in wider Europe.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.