Fri close: Shares down as Greece delays repayment

The leading index of shares suffered its biggest weekly drop in nearly six months, dragged lower by grocers and disappointing merger news.

The FTSE 100 slumped to an intra-day low of 6,785.15 points, the lowest level in two months, and finished down 2.6% over the week.

It closed down 54.64 points, or 0.8%, at 6,804.60 in line with weaker European indexes, after Greece delayed its €300 million debt payment to the IMF and OPEC decided not to curb oil production.

Traders were also spooked by better than expected US job figures which forced Treasury yields higher and may bring forward an interest rate hike. Non-farm payrolls increased by 280,000 in May (consensus: 215,000).

Vodafone was responsible for shaving 6.3 points from the index after it ended speculation of a merger iwth Liberty Global. Its shares slumped 2.4%.

An interim management statement from Bellway revealed the housebuilder expects its full year operating margin to increase by around 300 basis points to over 20%, up from 17.2% in 2014 following what it described as a strong trading performance.

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