London close: Footsie slips further as sterling basks in Supreme Court strength
FTSE 100
8,078.86
17:14 25/04/24
London stocks slid further into the red by the close on Tuesday, while sterling enjoyed some time in the green after the Supreme Court ruled that Prime Minister Boris Johnson's five week suspension of parliament was unlawful.
FTSE 250
19,601.98
17:09 25/04/24
The FTSE 100 finished down 0.47% at 7,291.43, deepening its pre-lunch losses, while the FTSE 250 was down 0.62% at 19,919.07.
Sterling hit a session high of $1.2488 as news of the Supreme Court ruling broke, and was last up 0.43% against the dollar at $1.2482 and 0.38% firmer against the euro at €1.1351.
Ministers argued that the suspension was not an issue for the courts, but critics said Johnson had imposed it to stop his plans to force through a no-deal Brexit being scrutinised by MPs.
However, the court ruling effectively means that the suspension did not happen and parliament may resume as soon as possible.
David Cheetham, chief market analyst XTB, said the ruling has prevented what would have been the setting of a dangerous precedent.
"Had the court ruled that the matter was not justiciable, then the PM may well have felt further emboldened to pursue unorthodox tactics to keep no-deal on the table and engage the UK in a game of high-risk brinkmanship.
"It is now up to the speakers of each of the houses to decide whether parliament should be recalled and given the well-known views of Commons speaker John Bercow it looks highly likely that MPs will resume sitting in short order."
In equity markets, Russian steelmaker Evraz was a leading loser, falling 5.52% amid falling iron ore prices.
Metro Bank plunged 35.19% after the challenger bank pulled a £250m bond sale on Monday, as it wasn't able to attract enough investors.
“It shows the kind of mire Metro is in after the accounting error and now expanding FCA investigation," said Neil Wilson, chief market analyst at Markets.com.
"It’s crazy to think it was offering 7.5% on these notes and still couldn’t get the demand.
"This is a worrying sign that the bank is not able to raise fresh debt and/or capital when the going gets tough.”
Merchant bank Close Brothers lost 1.53% after it reported a fall in full-year profit, with a solid performance from the banking division offset by weaker trading in its securities arm, as it announced the departure of its chief executive.
Auto Trader Group was down 3.73% after UBS cut its price target on the stock and its forecasts for average revenue per retailer growth in the 2020-2021 financial year.
Royal Mail fell 3.77% after a downgrade to 'sell' at Liberum, while Pets at Home was knocked 1.78% lower by a downgrade to 'underweight' at Morgan Stanley, and Weir Group was 2.99% weaker after being cut to 'hold' at Peel Hunt.
On the upside, travel operator TUI surged once again, rising 6.46% as it reiterated its forecast of a fall in full year profits and warned Brexit worries, Boeing 737 MAX groundings and airline overcapacity would continue to pose challenges in the new fiscal year.
The shares were likely still being propped up by the demise of Thomas Cook, however, having rallied sharply on Monday.
Russ Mould, investment director at AJ Bell, said TUI now has the chance "to mop up business that would have normally gone to Thomas Cook and to potentially convince some of its rival’s customers to go for some of its more differentiated offerings rather than a bog-standard package holiday."
Elsewhere, Card Factory and Irn-Bru maker AG Barr were both higher, adding 4.01% and 3.41% respectively, following well-received interim results.
Market Movers
FTSE 100 (UKX) 7,291.43 -0.47%
FTSE 250 (MCX) 19,919.07 -0.62%
techMARK (TASX) 3,868.12 -0.02%
FTSE 100 - Risers
TUI AG Reg Shs (DI) (TUI) 959.60p 6.46%
Ocado Group (OCDO) 1,339.50p 2.13%
Sage Group (SGE) 684.20p 1.60%
Carnival (CCL) 3,672.00p 1.58%
JD Sports Fashion (JD.) 707.00p 1.49%
International Consolidated Airlines Group SA (CDI) (IAG) 477.80p 1.38%
Smith & Nephew (SN.) 1,945.50p 1.20%
Rentokil Initial (RTO) 458.20p 1.17%
Halma (HLMA) 1,972.50p 1.10%
DCC (DCC) 7,080.00p 1.09%
FTSE 100 - Fallers
Evraz (EVR) 460.10p -5.52%
Auto Trader Group (AUTO) 498.50p -3.73%
Imperial Brands (IMB) 2,020.00p -3.53%
Burberry Group (BRBY) 2,109.00p -2.98%
Spirax-Sarco Engineering (SPX) 7,770.00p -2.94%
BHP Group (BHP) 1,710.80p -2.86%
Rio Tinto (RIO) 4,138.00p -2.52%
BAE Systems (BA.) 561.60p -2.50%
Croda International (CRDA) 4,768.00p -2.27%
Antofagasta (ANTO) 865.40p -2.13%
FTSE 250 - Risers
Card Factory (CARD) 168.50p 4.01%
UDG Healthcare Public Limited Company (UDG) 761.50p 3.46%
Barr (A.G.) (BAG) 608.00p 3.41%
Hikma Pharmaceuticals (HIK) 2,151.00p 2.92%
Big Yellow Group (BYG) 1,044.00p 2.76%
Amigo Holdings (AMGO) 70.50p 2.03%
Convatec Group (CTEC) 178.90p 1.85%
SSP Group (SSPG) 676.00p 1.81%
Funding Circle Holdings (FCH) 98.20p 1.78%
PZ Cussons (PZC) 212.50p 1.67%
FTSE 250 - Fallers
Metro Bank (MTRO) 175.00p -35.80%
Investec (INVP) 412.50p -7.08%
PureTech Health (PRTC) 241.00p -6.59%
Sanne Group (SNN) 541.00p -5.42%
Primary Health Properties (PHP) 132.60p -5.15%
Royal Mail (RMG) 211.70p -3.77%
Premier Oil (PMO) 83.72p -3.75%
Ted Baker (TED) 937.00p -3.35%
Wood Group (John) (WG.) 405.20p -3.29%
AJ Bell (AJB) 404.50p -3.23%