The London market finished lower on Thursday session as FTSE 100 futures eased from its record high logged last Wednesday as the outsourcing group Capita slumped more than 9%.
Quick Fall
The British index settled below the flat line after it edged down 0.1%, or 0.55 points, to close at 7 382.35, slipping away from its 7382.90 record close logged last Wednesday when it jumped 1.6%, as the London Stock Exchange joined in the equity markets rally around the globe.
The Thursday decline was driven by a dramatic slump on the shares of Capita as it gave up over 9% after the outsourcing firm reported that its annual pre-tax profits depreciated 33% to settle at £74.8m. Investors also took profit selling when it announced that the company’s chief executive Andy Parker would be vacating the position later this year.
Merlin Entertainments, an operator of theme parks such as Legoland and Alton Towers, also towed the index into the bearish territory as it lost 3% despite upbeat data on the firm’s reports. The company reported a £277m pre-tax profit in 2016, up from the £250m earned on the year prior.
London’s blue-chip index has been performing well in the past sessions, with President Donald Trump again staging a global rally on equity markets last Wednesday which sent stocks into their record high including the FTSE 100 and the Dow Jones average industrial futures that has shattered the historical 21000- barrier.
Investors are now focusing on the current formal Brexit process, with members of the House Lords approving less than 3 million EU citizens living inside the UK to stay after the ongoing process.