Tue City brief: Traders pull back on growth data
Market traders pulled back from the previous session high to push the FTSE100 73.45 points lower to 7030.53, with European markets also under pressure.
New data showed Britain’s economy slowed sharply in the first three months of 2015. Gross domestic product grew by 0.3%, the slowest quarterly rate since the end of 2012.
Economists said the weakness was likely to be a blip and that the economy was still on course for another strong year of growth. However, the pull back in investment and slower construction growth showed companies were nervous ahead of the General Election.
Oil and gas explorer Ophir Energy made gains after reaching an agreement to acquire four production sharing contracts in Indonesia from Niko Resources.
Property and construction services company Kier Group traded higher after agreeing to acquire acquire infrastructure repair and maintenance services group Mouchel for £265m.
Whitbread fell 3% or 140p to 5,300p after chief executive Andy Harrison decided to call time on his spell at the top of the Premier Inns and Costa group.
Pinnacle Technology, the AIM-quoted IT managed service provider, has brought MXC Capital onto its share register after raising £860,000 (before expenses) through a placing of 13,164,122 new ordinary shares, at a price of 6.5p share. N+1 Singer is acting as nominated adviser and sole broker for the transaction.
The issue price represents a 16% premium to the closing middle market price of 5.625p per share on 27 April, the latest dealing day prior to the announcement.
The new funds will be used to implement the company’s growth strategy and to fund the working capital requirements. MXC Capital will also provide corporate finance advisory services to the business.