Commodity stocks weigh on the FTSE 100; Playtech jumps on takeover bid

The offices of the London Stock Exchange Group can be seen in the City of London, Great Britain on December 29, 2017. REUTERS / Toby Melville / File Photo

  • Playtech jumps on JKO Play takeover offer
  • Royal Mail wins on strong HY results
  • Oil and metals at their lowest for more than a month
  • FTSE 100 decreases 0.2%, FTSE 250 increases 0.3%

Nov. 18 (Reuters) – Britain’s FTSE 100 fell on Thursday as oil and mining majors were hit by falling commodity prices, while online games software developer Playtech jumped after receiving a third takeover bid in the past two months.

The blue-chip FTSE 100 fell 0.2% in morning trading, with oil companies Royal Dutch Shell (RDSa.L) and BP (BP.L) losing around 1% each as crude prices plunged to their lowest level in six weeks after China said it was moving to release reserves.

Miners (.FTNMX551020) fell 0.9% after copper prices fell to their lowest level in more than a month.

The FTSE 100 extended losses for a third day after a robust jobs report and data showing inflation at a 10-year high earlier this week bolstered rate hike expectations.

“Rising inflation has helped push the index down as it increases the likelihood of a rate hike before Christmas, thereby raising the pound,” said Russ Mold, chief investment officer of AJ Bell.

“When about 70% of its constituents’ income comes from overseas, the strength of the pound is not very helpful.”

Embroiled in supply chain issues and inflationary pressures, London’s FTSE 100 struggled to perform as well as its European peers who extended their gains for their seventh day.

Investors are waiting for October retail sales data on Friday to assess whether higher prices are hurting consumer spending.

“We were constantly told that we need to get our Christmas orders earlier, and as a result, we might actually see a better than expected number the same way we did in the US,” Michael said. Hewson. , Chief Market Analyst at CMC Markets.

Drugmaker GlaxoSmithKline (GSK.L) fell 2.5% as it traded off dividend.

Royal Mail (RMG.L) climbed 5% after the company announced it would return £ 400million ($ 539.84million) to shareholders and forecast an increase in annual profits from its UK operations United. Read more

The domestically focused mid-cap index (.FTMC) rose 0.3%, with Playtech (PTEC.L) adding 4.3% after a takeover bid by JKO Play Ltd.

Mining stocks significantly underperformed the UK FTSE 100

Reporting by Bansari Mayur Kamdar; Editing by Subhranshu Sahu and Shounak Dasgupta

Our Standards: The Thomson Reuters Trust Principles.

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