FTSE moves in tight range before Fed; Just Eat plunges
Milan: The FTSE 100 edged up on Wednesday as a weaker pound supported the export-oriented index, helping offset a heavy fall in Just Eat on fresh competition worries and a drop in oil prices.
The index .FTSE was up 0.1 percent, moving in tight ranges as investors waited for a string of central bank decisions this week starting from the U.S. Federal Reserve later in the day.
Just Eat (JE.L) fell 8 percent, leading fallers on the FTSE, after Deliveroo stepped up competition against its rival, saying it would allow restaurants to use their own riders for orders placed through its app.
“It’s a model used by Just Eat, and means Deliveroo’s army of mopeds is potentially set to mount a significant challenge to the FTSE 100 firm’s grip on the food delivery sector,” said Connor Campbell, analyst at Spreadex.
Domino’s Pizza (DOM.L) was also lower, down 2.2 percent.
The energy sector was the biggest weight, taking 3.6 points off the FTSE.
Oil majors Royal Dutch Shell (RDSa.L) and BP (BP.L) fell 0.4 and 0.2 percent respectively as oil prices fell, hit by rising supplies in the United States and expectations that producer group OPEC could relax voluntary output cuts.
Glencore (GLEN.L) rose 2.3 percent after its Congo unit reach a settlement to dissolve a copper and cobalt joint venture.
Elsewhere, Dixons Carphone (DC.L) shares fell 3.7 percent after the company announced a data breach in which 1.2 million records of non-financial personal information had been accessed.
British small-cap Connect Group (CNCTC.L) fell 47 percent after the logistics firm warned full-year profits and dividends would be “materially” lower than expected, and CEO Mark Cashmore stepped down.