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FTSE struggles for momentum as sterling makes gains
StockMarketWire.com
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The FTSE 100 remained safely above the 6,500 mark but lost its momentum as the day wore on as sterling continued to gather strength, thereby hitting the relative value of its constituents' overseas earnings.
A drop in US inflation was the latest catalyst for the dollar to dip against the pound. US stocks were down a little from their record highs, by 4pm UK time the S&P 500 was down 0.2% to 3,903.17.
Sentiment was also supported by the new record highs marked by US and Asian stocks overnight.
Housebuilder Persimmon fell 2.2% to £27.23 after it identified unsafe cladding materials in high-rise buildings and flagged a £75 million charge to pay for replacement work.
Persimmon's review comes in the wake of the Grenfell Tower disaster in 2017, which saw a high-rise residential building catch fire, killing 72 people.
Persimmon had found 26 buildings that it had developed that may need work.
Fellow house builder Redrow reversed 3.8% to 550p, even as it reinstated its dividend on the back of an 11% rise in first-half profit.
Redrow said the profit growth was underpinned by a recovery in demand, though partly driven by the looming end of the UK government's Help-to-Buy subsidy.
Homewares retailer Dunelm 7.5% to £13.55 after it resumed dividends with a 12p per share payout, having reported a 34% jump in first-half profit as families get more house-proud during lockdowns.
Dunelm said strong online sales offset the impact from store closures in the second quarter owing to Covid-19 restrictions.
Packaging company Smurfit Kappa firmed 1.8% to £36.04 even after it booked a lower underlying operating profit, pinned on lower box prices during the pandemic, that was nevertheless better than expectations.
Smurfit Kappa also upped its final dividend by 8%, citing the strength of its prospects amid the ongoing e-commerce boom.
Advertising company WPP fell 0.9% to 810.4p following news that it had acquired Brazilian digital innovation and software engineering group DTI Digital, for an undisclosed sum.
Emerging markets asset manager Ashmore fell 1.1% to 474.2p as it reported a rise in assets under management and 14% profit growth, driven by investment performance.
Ashmore held its dividend steady at 4.8p per share.
Residential landlord Grainger slipped 1.3% to 267p on announcing that rental collection stood at 98% and like-for-like sales were up 2.4% in the four months through January.
Grainger's private rental occupancy stood at 90%, in line with levels at the end of 2020, following a delay in the anticipated recovery in occupancy in London amid new lockdowns.
Biotherapeutics company PureTech Health added 0.8% to 380p after it sold a million shares in founded entity Karuna Therapeutics for around $118 million.
Replacement window and door manufacturer Safestyle fell 4.7% to 39.5p, having guided for a deeper underlying annual loss, despite returning to profit in the second half.
Story provided by StockMarketWire.com
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