London Report: FTSE’s winning run ends as Tate & Lyle share price sours
BRITAIN’S top share index fell yesterday after six straight days of gains, its longest rising streak of the year, led down by food ingredients firm Tate & Lyle and engineer Rolls Royce, which gave disappointing outlooks.
Of FTSE 100 companies that have reported quarterly earnings so far, 39 per cent have missed profit expectations. The FTSE 100 closed down 15.61 points, or 0.2 per cent, at 6,659.42 points.
Tate & Lyle lost most in percentage terms, down 16.1 per cent after it scaled back its full-year outlook, citing weak sales volume in developed markets. Fellow European consumer staple Nestle also fell after giving a caution on outlook, further denting sentiment towards the sector, with the FTSE 350 Food producers 1.2 per cent weaker.
Rolls Royce, down 13.6 per cent, took the biggest chunk out of the FTSE, knocking 11.9 points off the index.
Although the engineer’s profit rise beat forecasts, its outlook was disappointing, saying it expected 2014 profits to be flat on the back of declining defence and marine revenues.