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Investors cautious

Market retreats as election nerves weigh

London Stock ExchangeShares retreated today as the general election approached and tourism-related stocks slipped back after the terror in London on Saturday.

The blue-chip FTSE 100 index slipped by about 0.3% and was trading about 12 points lower at 7,536 just before the close, falling back from the record high that it touched on Friday.

Investor caution was increased after a new poll suggested the Conservative Party was not certain to win a majority on Thursday.

There were also weaker figures on the services sector which grew more slowly than expected last month as businesses put off investment decisions before Thursday’s vote and higher inflation squeezed households.

The services purchasing managers’ index (PMI) fell to a three-month low of 53.8 from 55.8 the month earlier.

Figures on the wider economy show it has recovered some of its momentum after slowing in the first three months of 2017, when the cost of the pound’s fall after last year’s Brexit vote caught up with consumers.

In the first quarter, growth slowed to just 0.2%, the weakest rate among the Group of Seven economies, according to IHS Markit.

In corporate news, online retailer Ocado surged more than 4% to a 14-month high, after clinching a long-awaited international deal with an unnamed regional European retailer. It topped the FTSE 250 index.

Small cap tech firm IndigoVision soared 15p or 5.9% to 270p as it was revealed that three directors bought shares at 260p per share on Friday. They traded at 175p in mid-May.

Outgoing chairman Hamish Grossart and chief financial officer Chris Lea each bought 5,000 shares and now hold 423,250 shares and 24,078 shares, respectively.

Non-executive Ddrector Martin Pengelley bought 2,000 shares and now holds 4,000 shares.

 

 

 

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