Quiet trading sees FTSE end the day flat and stays in a 30pt trading range
City Index August 28, 2012 10:06 PM
<p>A quiet return to trading for traders in London after a long bank holiday weekend saw the FTSE 100 close flat on the day and […]</p>
A quiet return to trading for traders in London after a long bank holiday weekend saw the FTSE 100 close flat on the day and stay within a tight trading range of just 30pts.
The quiet session is a typical feature of the late August bank holiday in the UK, and when combined with the fact that many traders utilise this time to take their holidays, it is easy to understand why trading today has been rather quiet. Yet we do have a heavy calendar of economic data out in the next three days alongside the Jackson Hole economic symposium. As such, market activity could start to pick up if some surprises emerge.
It is the retailers who have proved to be a key drag on the FTSE 100 today, with the sector losing over 1.5% in trading. Shares of retailer Kingfisher lost the most in the sector, falling over 4% as investors reacted to a bearish broker note from Bank of America/Merrill Lynch, who cut their price target on the stock as well as their rating by two notches from outperform to underperform, citing consumer headwinds in France. Alongside that of Kingfisher’s shares to the downside were Marks and Spencer’s, as investors decided to lock in some of their gains after six weeks of consecutive gains in the share price on the back of bid speculation.
The mining sector also fell on the day with ENRC the top faller in the FTSE 100. The miners shares lost 6% as Morgan Stanley cut their price target on the firm to 520p from 840p, alongside that of Anglo American, BHP Billiton and Vedanta Resources in a sector wide revision.
Glencore shares hit their highest levels since 11 May however, rising 4.67% on the day continuing their good run of form. Since 1 June, the firm’s shares price has rallied 33%.
See FTSE 100 Chart below (3 months)
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.