FTSE 100 slips from two-year high as Tesco and M&S tumble despite bullish outlook

  • Tesco and M&S fall in early trading
  • Countryside Properties falls as CEO resigns
  • Stronger pound weighs on dollar holders
  • FTSE 100 down 0.2%, FTSE 250 down 0.3%

Jan 13 (Reuters) – London’s FTSE 100 eased on Thursday from a two-year high reached in the previous session after a stronger pound hit some dollar buyers and retailers Tesco and Marks & Spencer fell despite raising their earnings forecast.

The blue-chip FTSE 100 index (.FTSE) fell 0.2% as international majors Diageo (DGE.L) and Unilever (ULVR.L) fell as the pound rose to new highs against the dollar.

Shares of Tesco (TSCO.L) and Marks & Spencer (MKS.L) fell 1.8% and 6% in morning trade as the companies raised their forecasts, as expected, after a strong Christmas performance . Read more

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“That answer seems a bit crude but may have more to do with stocks near 11-month highs and that certainly doesn’t mean they can’t go higher in the longer term,” said Michael Hewson, analyst at CMC Markets. said about Tesco.

Tesco and M&S have gained 19% and 80% over the past year, marking a strong recovery from the pandemic-induced selloff.

Laura Hoy, an analyst at Hargreaves Lansdown, said M&S shares “have risen markedly since the start of the pandemic, and it will take much more than a boost to earnings to support those expectations.”

The FTSE 100 is on track for its fourth straight week of gains as energy, mining and banking heavyweights helped it outperform the broader European index (.STOXX) and the index British Mid Cap (.FTMC) this year.

Fashion chain ASOS (ASOS.L) jumped 10% after the company announced it would move to the main stock market listing, broadening its possible shareholder base, but reiterated its downgraded outlook .

The domestically-focused mid-cap index (.FTMC) fell 0.3%, led by a 19% drop in Countryside Properties (CSPC.L) after the resignation of its chief executive and an update disappointing business.

British oil services and engineering company Wood Plc (WG.L) rose 14.7% topping the mid-cap index after it said the sale of a division as part of its oil and gas business board was the best option to create shareholder value. Read more

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Reporting by Shashank Nayar in Bengaluru; Editing by Subhranshu Sahu and Amy Caren Daniel

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