The FTSE 100 slips 0.2% to 6,805 in early trading on Thursday 24 November, dragged down by weakness in defensive stocks like utilities and consumer staples businesses.
The property sector is in focus yet again as estate agents respond to the Government’s decision to clampdown on lettings fees and a few companies update on trading.
A mild profit warning sends estate agent Countrywide (CWD) down 14.1% to 166.55p. It expects transaction volumes to be down both this year and even more in 2017.
Belvoir Lettings (BLV) falls 10.8% to 107p as it says the proposed changes on industry fees will hit its gross profit by no more than 8%.
Purplebricks (PURP:AIM) rises 3.3% to 112.63p after reassuring the market that the new tenant fee structure proposed at yesterday’s Autumn Statement won’t have any meaningful impact on its business. Purplebricks is one of our top investment picks at present.
FTSE 100 miner Rio Tinto (RIO) retreats 0.6% to £30.80 despite outlining plans to generate $5bn of additional free cash flow over the next five years through a new productivity drive.
A more aggressive expansion plan sends Domino’s Pizza (DOM) up 2.1% to 336.95p. The fast food franchise expert says it will increase its long term target for UK stores to 1,600 sites. It expects to have 950 operational branches by the end of 2016.
Chesnara (CSN) is to buy a Dutch subsidiary of Legal & General (LGEN) for €160m (£135.6m) to expand its life and pensions business. The market likes the news, sending its shares up 4% to 321.25p.
The bid war continues to be fought for utilities firm Dee Valley (DVW). Its shares rise another 5% to £18.12 after Severn Trent increased its offer following competition from Ancala.
Vets-to-pet cemeteries operator CVS (CVSG:AIM) rises 7% to 951.5p after saying underlying profitability for the four months to 31 October is ahead of the board’s expectations.
The collapse of a financing deal hits aspiring lithium producer Bacanora (BCN:AIM), down 8.7% to 73.5p. Its major shareholder Rare Earth Minerals (REM:AIM) also falls on the news, slipping 8.2% to 0.51p.
HSS Hire (HSS) retreats 6.3% to 89p after saying fourth quarter trading will be at the lower end of management expectations. This is blamed on extending a restructuring project into early 2017.
Real estate group Helical (HLCL) rises 6.6% to 280p on a decent set of half year results and pre-lets a third of space available in the second phase of a development in Old Street, London.
