Rotork Share News (ROR)

LONDON (Alliance News) - Stocks in London ended lower on Thursday, with the FTSE 100 firmly in the red amid a stronger pound which appreciated after the UK and EU agreed a draft text outlining a close post-Brexit relationship.The FTSE 100 index closed down 1.3%, or 89.91 points at 6,960.32. The FTSE 250 ended down 0.3%, or 54.94 points, at 18,530.00, and the AIM All-Share closed down 0.6%, or 5.78 points, at 924.61.The Cboe UK 100 ended down 1.3% at 11,821.00, the Cboe UK 250 closed up 0.1% at 16,694.28, and the Cboe Small Companies ended up 0.3% at 11,397.80."The strong rally in the pound ensured a stiff fall for the FTSE, where the majority of constituents are multinationals, penalised by pound strength. Noticeable riser where housebuilders and retailers. Any signs that a Brexit deal could go through, with a close future relationship with the EU, could prevent another heavy fall for sterling and a repeat spike in inflation," said City Index analyst Fiona Cincotta. The pound was given a boost following the news that the UK and EU have agreed to a Brexit deal in principle.Sterling was quoted at USD1.2855 at the London equities close, higher compared to USD1.2788 at the close Wednesday. The pound hit an intraday high of USD1.2927 in the wake of the Brexit breakthrough. Prime Minister Theresa May said the agreement of a political declaration on the UK's post-Brexit relationship with the EU is "the right deal for the UK" and reflects the will of the 52% majority who voted to leave the bloc."This is the right deal for the UK. It delivers on the vote of the [2016] referendum," May said outside Downing Street following talks in Brussels late Wednesday. "That deal is within our grasp and I am determined to deliver it."May added that she spoke to Spain's prime minister and is confident of finding "a deal that delivers for the whole UK family, including Gibraltar".Notably, despite the positive rhetoric, neither the EU or parliament have given any indication that the proposal will be given the green light and as such risks still remain. Opposition leader Jeremy Corbyn said Labour will vote against May's Brexit agreement unless it meets six conditions, including delivering the same benefits the UK currently has as a member of the EU customs union and single market."While the Declaration includes features that seem intended to soften opposition to the deal on both sides of the Channel, it is non-binding and largely aspirational. The pound rose against the dollar after the announcement, but is still trading below the level seen last week prior to the resignation of Brexit secretary Dominic Raab," said analysts at Capital Economics. On the London Stock Exchange, Just Eat ended as the best blue chip performer, up 3.9% after JPMorgan upgraded the online takeaway platform to Neutral from Underweight on valuation grounds. However, analysts at the investment bank said potential for Just Eat's shares to outperform remains low due to its structural disadvantages compared to peers Deliveroo and Uber Eats.Royal Mail closed up 3.0% after RBC Capital upgraded the postal operator to Sector Perform from Underperform. "We see long-term strong restructuring potential as we think Royal Mail still has potential improvements to make as it overcomes the legacy of many years of state-owned likely under management, under investment and over-regulation," said analysts at the Canadian bank. Housebuilders, which had taken a battering amid heightened Brexit uncertainty over the past week, ended in the green, with Barratt Developments, Berkeley Group, Taylor Wimpey and Persimmon up 2.0%, 2.0%, 1.9% and 1.0%, respectively.At the other end of the large cap index, Fresnillo ended as the worst performer, down 12% after Morgan Stanley downgraded the gold miner to Underweight from Equal Weight saying its prospects could be severely hurt should proposed mining legislation in Mexico restricting mining access in the country come to fruition. "Our move to Underweight reflects the impact from any rise in mining industry risks on Fresnillo, as it currently trades on a premium valuation vs peers, in part driven by the market viewing Mexico as a favourable jurisdiction for mining. With uncertainty introduced, we see scope for a de-rating and for this premium to contract," Morgan Stanley analysts said. Centrica closed down 9.2% after the British Gas parent company reported a steep drop in customer numbers and said it sees a GBP70 million one-off impact on operating profit in the first quarter of 2019 from Ofgem's energy supply price cap.The company's UK home energy customer numbers reduced by 372,000 in the four months to the end of October due to continued high levels of market switching and a second standard variable tariff increase earlier in August. Centrica also reduced 2018 production guidance for its Spirit Energy business to 47.5 million barrels of oil equivalent from 50 million barrels guided earlier. In February, Centrica had guided for production of between 50 million barrels of oil equivalent and 55 million barrels. This cut reflects unplanned stoppages as well as operational issues. "The company said that it lost 372,000 customers in the four months until October. The energy firm lost 341,000 clients in the first six months of the year, so today's figures show the company is losing clients at a faster pace. There has been a significant increase in the number of energy providers in the last seven years, and that is great for members of the public, but it has been dreadful for Centrica," said CMC Markets analyst David Madden.In the FTSE 250, CLS Holdings closed up 3.7% after the commercial property investor expressed confidence in its results for 2018 after "robust" second-half to-date. For the period from the beginning of July to Wednesday, the company's vacancy rate reduced to 4.3% from 5.7% at June 30. All three CLS' markets, the UK, Germany, and France achieved a reduction in vacancy rates. At the other end of the mid cap index, Rotork ended as the worst performer, down 3.1% after the valve actuators maker reported a drop of 4.0% in order intake during the third quarter of its financial year. In the third quarter, order intake in Rotork's fluid system division dropped 20%, while the Controls unit saw orders down 3.3%.In Paris the CAC 40 ended down 0.8%, while the DAX 30 in Frankfurt ended down 0.9%. The euro was flat at USD1.1400 at the European equities close, against USD1.1408 late Wednesday. Financial markets in the US are closed for the Thanksgiving holiday and will resume trading on Friday for a half day. Brent oil was quoted at USD62.70 a barrel at the London equities close, down from USD64.10 at the close on Wednesday. "Oil has experienced low volatility today thanks to the absence of most US traders. There are still concerns about the US's rising inventory of oil, as well as fears about future demand in light of slowing growth in China. OPEC will meet next month, and there is talk of a production cut, but the Saudi's are under pressure from President Donald Trump to keep prices down," said CMC's Madden. Gold was flat quoted at USD1,227.52 an ounce at the London equities close against USD1,227.00 late Wednesday.The economic events calendar on Friday has Germany GDP readings at 0700 GMT, alongside manufacturing and services PMI figures from France, Germany, the eurozone and US at 0815 GMT, 0830 GMT, 0900 GMT and 1445 GMT respectively. In addition, the Nikkei in Japan is closed for the Labor Thanksgiving Day holiday. The UK corporate calendar on Friday has full year results from magazine publisher Future and half year results from pub operator and brewer Fuller, Smith & Turner and currency manager Record.