FTSE 100 inches down as losses in consumer shares counter mining gains

2 minute read

A trading screen is seen following the opening of the markets by British Chancellor of the Exchequer Philip Hammond and Chinese Vice-Premier Hu Chunhua at the London Stock Exchange in London, Britain June 17, 2019. REUTERS/Henry Nicholls/Pool

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  • Playtech gains on receiving takeover bid
  • Abrdn jumps on talks to buy investment service firm
  • BAE Systems slips despite sticking to earnings guidance
  • FTSE 100 down 0.05%, FTSE 250 off 0.1%

Nov 8 (Reuters) - London's FTSE 100 edged lower on Monday as gains in miners were offset by weakness in consumer-focussed and travel stocks, while online gambling firm Playtech jumped after a takeover bid from its second-biggest shareholder.

The blue-chip FTSE 100 index (.FTSE)ended 0.05% lower, with large dollar earners, including Unilever (ULVR.L), British American Tobacco (BATS.L) and Diageo Plc (DGE.L)down between 0.4% and 1%, hit by sterling's strong gains.

Limiting further losses were precious metals miners (.FTNMX551030) and oil stocks (.FTNMX601010) on the back of firmer commodity prices.

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"The markets are now in a bit of a wait-and-see mode following central bank decisions last week and as they look ahead for more data to judge global economic recovery with the overall bullishness for equity markets and a strong outlook for global economic growth remaining intact," said David Madden, an analyst at Equiti Capital.

The FTSE 100 has gained around 13% so far this year and has recovered from its pandemic-driven losses supported by dovish central bank policies, robust quarterly results and reopening optimism.

However, the index still underperformed its European peers (.STOXX), which have gained around 21% year-to-date, over lingering concerns of rising input costs affecting the pace of economic recovery.

The domestically focussed mid-cap index (.FTMC) was down 0.1%, dragged by weakness in travel and leisure shares (.FTNMX405010).

Travel and leisure stocks (.FTNMX405010) fell 1.2%, with IAG (ICAG.L), Flutter Entertainment , Entain (ENT.L) among the top drags on FTSE 100.

Playtech Plc (PTEC.L) rose 2.4% after it received a takeover offer from its second-biggest shareholder, Gopher Investments, on Sunday. read more

British defence company BAE Systems (BAES.L) slipped 0.5%, even after it stuck to its guidance for earnings to grow by 3% to 5% this year over 2020's result, and said demand for its products and services remained high. read more

Abrdn Plc (ABDN.L) jumped 3.6% after Sky News reported on Saturday the British asset manager was in advanced talks to buy Interactive Investor, an online investment service, for more than 1.5 billion pounds ($2.02 billion).

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Reporting by Shashank Nayar and Amal S in Bengaluru; Editing by Subhranshu Sahu, Shailesh Kuber and Andrew Heavens

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