SEPU.L Share News (SEPU)

LONDON (Alliance News) - UK equities ended mixed Friday with travel stocks down in the wake of the Nice terror attacks, while the pound slipped against the dollar on dovish comments from the Bank of England's chief economist and better-than-expected US retail sales.

The FTSE 100 ended up 0.2%%, or 14.77 points, at 6,669.24, leaving the blue-chip index up 1.2% on the week. The FTSE 250 closed down 0.4%, or 60.77 points, at 16,727.27, though the mid-cap index outperformed its large-cap peer over the course of the week and ended up 3.4%. The AIM All-Share closed Friday up 0.1%, or 0.73 points, at 723.73 and up 2.6% on the week.

Amongst the biggest fallers in the UK's main stock indices were budget carrier easyJet, down 3.1% and travel operator Thomas Cook Group, down 4.2%.

Travel stocks fell after a truck ploughed into a crowd in the southern French city of Nice during Bastille Day celebrations on Thursday night, killing at least 84 people.

The CAC 40 index in Paris closed down 0.3% and the DAX 30 in Frankfurt ended flat.

On Wall Street at the European equity close, the Dow 30 was flat, the S&P 500 was down 0.2% and the Nasdaq Composite was down 0.1%.

The dollar rose after the US Commerce Department released a report showing a much bigger-than-expected increase in US retail sales in June. The report said retail sales climbed by 0.6% in June compared to economists' estimates for a 0.1% uptick.

At the same time, the report said retail sales growth in the month of May was downwardly revised to just 0.2% from 0.5%. However, the downward revision to the May sales growth was primarily due to a revision to auto sales, which are often volatile.

Meanwhile, the Labor Department said US consumer prices rose slightly less-than-forecast in June. The consumer price index rose by 0.2% in June after rising by a matching 0.2% in May. Economists had expected prices to rise by 0.3%.

The modest increase in consumer prices was partly due to the increase in energy prices, which rose by 1.3% in June after jumping by 1.2% in May.

At the London stock market close the euro traded the dollar at USD1.067, lower than the USD1.1110 seen at the close on Thursday.

The pound traded the dollar at USD1.3232 versus USD1.3343 at the London close on Thursday, giving back most of the gains it made after the Bank of England's decision to keep its interest rate unchanged.

Sterling was earlier hit after the Bank of England's chief economist Andy Haldane said he believes that "material easing of monetary policy" will be required next month to maintain confidence in the UK economy.

"I would rather run the risk of taking a sledgehammer to crack a nut than taking a miniature rock hammer to tunnel my way out of prison – like another Andy, the one in the Shawshank Redemption," he said. "And yes I know Andy did eventually escape. But it did take him 20 years. The MPC does not have that same 'luxury'."

Haldane added that easier monetary policy should be just one part of a collective policy response aimed at protecting the UK economy and jobs from a downturn.

Haldane's speech came after the central bank's surprise decision to keep its interest rate unchanged on Thursday at 0.5% amid heightened expectations of a rate cut following the UK's vote to leave the European Union.

In UK corporate news, DCC closed up 0.3% after the Irish distribution and outsourcing group reiterated its outlook for its current financial year to end-March 2017, saying it expects "another year of profit growth and development".

DCC said the UK's vote to leave the EU is not expected to have any "material direct impact" on its business as it has "relatively little cross-border trade".

The company said its operating profit for the first quarter to end-June was "significantly ahead" of the previous year, and "modestly ahead" of expectations, driven by the performance of its DCC Energy business, which in turn was boosted by acquisitions it completed in the previous year.

Davy analysts Allan Smylie and Ross Harvey added that, even in the event of a UK recession, the group has a "very defensive earnings stream" with the Energy and Healthcare businesses accounting for 83% of group profits.

Sepura shares surged 33% after it said it has been formally contracted to supply a TETRA network for New York City Transit, a USD34 million deal it first announced in April.

The critical communications services company said the radio systems contract covers system design, project management, and the supply of 40 base stations and approximately 7,500 terminals for the operator the New York subway system.

"This contract endorses both our acquisition of Teltronic and our strategy to focus on both the global transport sector and developing our business in North America - the two fastest growing segments for TETRA," said Sepura Chief Executive Gordon Watling.

Ashmore Group closed up 6.5% after the emerging markets-focused asset manager was upgraded to Buy from Neutral by Goldman Sachs and saw its price target hiked by JPMorgan Cazenove.

On Thursday, Ashmore said assets under management grew in the fourth quarter to the end of June, helped by positive investment performance and strong returns from emerging markets.

Crude oil prices reversed earlier losses, with Brent trading at USD47.59 a barrel at the London stock market close, versus USD47.19 at the same time on Thursday.

Jasper Lawler, market analyst at CMC Markets, said this reversal came after US oil giant Exxon Mobil stopped its shipments from a Nigerian port after technical disruptions likely caused by local militants.

The gold price was USD1,329.24 an ounce at the London close, against USD1,328.90 on Thursday.

In the economic calendar on Monday, the Rightmove house price index for the UK is at 0001 BST, MPC member Martin Weale is due to make a speech at 0915 BST and the Bundesbank's monthly report is at 1100 BST. Later in the day is the US National Association of Home Builders' housing market index.

In the UK earnings calendar, the focus will be on property developer British Land Co which reports first quarter results. Alcohol and soft drinks wholesaler Conviviality reports full-year results, as does digital television technology company Mirada. After the London market close, Anglo-Australian miner Rio Tinto releases second quarter operations review at 2330 BST.

By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1

Copyright 2016 Alliance News Limited. All Rights Reserved.