Stocks

FTSE 100 Live: Index Under Pressure as US-Iran Ceasefire Doubts Lift Oil, Hit Energy Stocks

FTSE 100 Opens Lower as US-Iran Uncertainty Weighs on Sentiment; JD Sports Leads Gainers While Shell, SSE and Severn Trent Decline Amid Oil Price Volatility.

Written By : Bhavesh Maurya
Reviewed By : Sankha Ghosh

The FTSE 100 opened around 15 points lower at 10,475 as mixed signals from US-Iran ceasefire talks and the ongoing Hormuz tensions outweighed diplomatic progress. Meanwhile, Brent crude futures fell 2.22% to $97.37 a barrel. US West Texas Intermediate (WTI) declined 2.87% to $91.20 ‌a barrel.

Gainers & Losers

JD Sports Fashion led the gainers, rising 4.72% to £85.12, while Marks & Spencer advanced 2.70% to £357.90 and International Consolidated Airlines Group gained 2.64% to £423.20.

Also, Mondi climbed 2.25% to £764, while Barratt Redrow added 1.93% to £264 and Croda International moved higher by 1.74% to £3,039.

On the downside, Shell declined 1.96% to £3,132, while SSE slipped 1.75% to £2,416 and Severn Trent fell 1.66% to £3,084.

Among other laggards, British American Tobacco dropped 1.27% to £4,759, while London Stock Exchange Group eased 0.76% to £9,106 and AstraZeneca edged lower by 0.63% to £13,872.

Pets Slashes Dividend

Pets at Home reported an increase in sales in the first weeks of its new financial year. A "rebased" shareholder returns policy sees the dividend cut to £7.4 million from £13 million, with growing emphasis on share buybacks, starting with a £50 million program over the next 12 months. 

The firm saw profit before tax dip by 28% to £86.5 million, while group revenue fell by 1% to £1.47 billion in its latest financial year.

UK’s Energy Bill to Rise by 13%

UK households to witness a sharp 13% rise in energy bills from July, as the conflict in the Middle East continues to disrupt energy supplies. 

The annual price cap rises to £1,862 per year from 1 July to 30 September, up from the current cap of £1,641. The rise also surpassed the predictions of analyst Cornwall Insight, whose final forecast saw an increase to £1,850. 

Calls are now growing for Chancellor Rachel Reeves to support vulnerable households, but last week she stopped short of any immediate energy measures in her cost-of-living plan.

Watkin Jones' Revenue Declines

Housebuilder Watkin Jones’ revenue declined nearly 22%, the firm said its sales dropped by around £30 million in the six months to the end of March, down to £100.2 million from £129.2 million. 

The firm’s total net provision for building safety updates currently stands at £38 million. Overall, the firm made a £0.9 million statutory loss before tax, while its adjusted net cash dropped from £73.4 million to £61.3 million.

“While market conditions remain challenging and continue to impact the pace of recovery, the long-term fundamentals of our end markets remain attractive, and our flexibility, strong pipeline and capital-light model position us well to navigate the near-term market conditions and create value for our stakeholders in the future,” Alex Pease, chief executive officer of Watkin Jones, said.

Also Read: Stock Market Today: Sensex Falls 164 Points, Nifty50 Slips Below 23,900

Global Market View

In the US, the Dow Jones dipped 0.2% overnight, but the Nasdaq jumped 1.2% and the S&P 500 0.6% to a new all-time high, backed by a 19% surge from memory chip maker Micron Technology.

In Asia, Tokyo's Nikkei rose 0.01%, while Hong Kong's Hang Seng fell 1.09%, China’s Shanghai Composite fell 1.25%, Seoul's Kospi added 2.25%, and Sydney's ASX 200 gained 0.69%. In India, both the Nifty 50 and Sensex declined 0.20% and 0.05%, respectively.

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