FTSE 100 movers: Kingfisher slumps on results, Aviva in the red
London’s FTSE 100 was down 0.8% at 7,263.79 in afternoon trade on Wednesday as worries about trade relations between the US and China intensified.
DIY group Kingfisher slumped after it reported a "disappointing" 3.2% fall in third-quarter sales in softer markets as the company's chief executive said it was suffering from "organisational complexity" that ignored customers.
Total sales fell 3.2% to £2.95bn on a constant currency basis. On a like-for-like basis, the decrease was 3.7% reflecting continuing disruption from new range implementations, lower promotional activity and ongoing operational challenges in France.
Russ Mould, investment director at AJ Bell, said "the company seems to be running very hard to get nowhere in particular".
"Recently appointed chief executive Thierry Garnier has diagnosed what he sees as some of the problems. It is trying to do too much at once and there is too much complexity in the business with the result that the company hasn’t been good enough at giving customers what they want.
"Garnier is right to bring the focus to this part of the equation as ultimately all retailers should be trying to get the right products in front of the right people, in the right place and at the right time.
"However, ultimately the company could just be swimming against the tide. Fewer people seem to have the time, skills or inclination to do DIY and would rather get a professional in instead."
Software company Sage retreated as it posted a 9% decline in full-year pre-tax profit, while insurer Aviva was weaker after saying it was simplifying its business into five operating divisions and selling its stake in its Hong Kong unit to joint-venture partner Hillhouse Capital.
The company also said it was in talks with partners on its Vietnam business and joint venture in Indonesia.
FTSE 100 - Risers
Scottish Mortgage Inv Trust (SMT) 515.50p 0.98%
Associated British Foods (ABF) 2,453.00p 0.70%
Glencore (GLEN) 242.55p 0.66%
International Consolidated Airlines Group SA (CDI) (IAG) 556.00p 0.40%
Croda International (CRDA) 4,810.00p 0.21%
Ocado Group (OCDO) 1,168.50p 0.17%
Diageo (DGE) 3,122.50p 0.13%
Just Eat (JE.) 754.80p 0.11%
Halma (HLMA) 2,058.00p -0.05%
Hikma Pharmaceuticals (HIK) 1,903.00p -0.10%
FTSE 100 - Fallers
Kingfisher (KGF) 194.60p -6.80%
Pearson (PSON) 633.00p -5.13%
Sage Group (SGE) 709.20p -4.42%
Aviva (AV.) 403.70p -3.49%
NMC Health (NMC) 2,510.00p -3.24%
Hargreaves Lansdown (HL.) 1,760.00p -3.16%
InterContinental Hotels Group (IHG) 4,678.00p -2.68%
Prudential (PRU) 1,285.50p -2.50%
DCC (DCC) 6,506.00p -2.25%
St James's Place (STJ) 1,038.00p -2.21%