FTSE 100 FALLS ON WEAK RESULTS; HOUSE PRICE INDEX OUTPERFORMS

FTSE 100 futures are currently trading at 7124-lower by 0.36% as compared to the previous closing. The contract, however, closed in the positive territory in the last trading session.

In the cash markets, the blue-chip share index slipped 0.64% to 7149.62 at the time of writing. The broad-market index dipped after rising for four days. The benchmark fell as several blue-chip shares traded ex-dividend, while NMC Health plus insurers Aviva and Admiral slipped after earnings reports.

The midcap index FTSE 250 was down 0.92% at the time of writing.

Miners BHP, Rio Rinto and Evraz plus house-builder Persimmon all traded ex-dividend and were among the top losers on the index.

United Arab Emirates’ healthcare provider NMC Health plunged 5.67% on course for its worst day since July 2016 after posting annual results.

Insurer Admiral Group fell 4.5% to be on course for its worst one-day fall in more than a year and a half. Though the company reported better-than-expected 2018 earnings, analysts said that was due to benefits related to Ogden rates.

Fellow underwriter Aviva and asset manager Schroders also fell 4.02% and 5.8% respectively after their annual earnings reports.

On the other hand, Melrose Industries surged 4.89% to its highest level since November after its full-year adjusted pretax profit nearly tripled, boosted by last year’s hostile takeover of British engineer GKN.

In addition, event manager and publisher Informa advanced 3.7% as its organic revenue topped market view.

Further dampening sentiment, European Union officials said on Wednesday that talks with Britain on amending its divorce deal with the EU had made no headway and no swift solution was in sight.

Data from mortgage lender Halifax showed earlier today that British house prices showed their biggest monthly jump since at least the 1980s in February. The Halifax House Price Index (MoM) released earlier today came in at 5.9% above the market expectation of 0.1%.

On the technical front, the RSI is currently at 57.8% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.

Overall Bias is negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.

 

Trade Suggestion- Limit Sell at 7130. Take Profit at 7090. Stop Loss at 7150

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