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Share Price: 103.55
Bid: 103.70
Ask: 103.75
Change: -0.30 (-0.29%)
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Open: 103.40
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UPDATE 2-FTSE 100 slips as Unilever, Shell weigh; BoE cuts growth outlook

Thu, 04th Feb 2021 09:27

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)

* Unilever falls on discouraging sales target

* Royal Dutch Shell down as profit slumps

* JD Sports up after raising $631 million

* FTSE 100 down 0.1% and FTSE 250 adds 0.3%
(Updates to close)

By Shashank Nayar, Amal S and Shivani Kumaresan

Feb 4 (Reuters) - The FTSE 100 ended lower on Thursday,
dragged down by Unilever Plc and Royal Dutch Shell
over disappointing sales goals and a slump in profit,
while the Bank of England cut its growth forecast for this year.

Unilever Plc lost 6.2% and was the biggest drag on
the index, after its sales growth target underwhelmed investors
seeking more ambitious goals amid strong consumer demand for
plant-based food products and home care brands.

Oil major Royal Dutch Shell was down 2.0%, after
its profit last year dropped to its lowest in at least two
decades as the coronavirus pandemic hit energy demand worldwide.

The blue-chip FTSE 100 index edged 0.1% lower, while
the mid-cap index added 0.3%.

The BoE kept its benchmark interest rate on hold at 0.1% and
said Britain's economy would probably shrink by 4% in the first
three months of 2021, but was expected to recover rapidly
towards pre-COVID levels over the year.

"With pent-up savings set to be unleashed later this year by
consumers looking to make up for lost time, the likelihood of
negative rates being implemented in the UK this year is
reducing," said Hugh Gimber, global market strategist at J.P.
Morgan Asset Management.

The export-oriented and commodity stocks-heavy FTSE 100 has
rebounded from early-2021 losses to trade 1.3% higher for the
year, and is set to post a weekly gain as vaccinations pick up
pace, corporate earnings improve and commodity prices increase.

BT, Britain's biggest broadband and mobile operator,
fell 3.2%, after reporting a 5% drop in both adjusted revenue
and core earnings that it attributed to COVID-19 closing retail
stores and reducing mobile roaming revenue.

Britain's biggest sportswear retailer JD Sports Fashion
rose 2.2%, after raising 464 million pounds ($631
million) through a placing of new shares.

(Reporting by Shashank Nayar and Shivani Kumaresan in
Bengaluru; editing by Uttaresh.V, Kirsten Donovan)

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