MARKET COMMENT: Kingfisher Tops FTSE 100 On CEO Change

LONDON (Alliance News) - UK indices ended Wednesday broadly lower after another volatile session, as underlying concerns of an independent Scotland continue.

The FTSE 100 closed flat at 6,830.11, while the FTSE 250 was again the worst performing of the main London indices falling 0.7% to 15,672.66 and the AIM All-Share ended the day 0.2% lower at 775.61.

European stocks have ended the day lower as well with the French CAC 40 falling 0.1% and the DAX closing 0.1% lower.

At the close of trade in London, US trading was mixed, with the DJIA and the S&P 500 both trading flat and the Nasdaq Composite trading up 0.1%.

The FTSE 100 clawed back initial losses during midday trading but slumped from its intraday high in the absence of fresh economic data. This caused investors to again be subdued by the prospect of an independent Scotland.

"UK markets have recovered from their modest panic on Monday morning, but the referendum will remain the only game in town for another week to come, casting a cloud of uncertainty across UK shares," said Brenda Kelly, chief market strategist at IG.

In individual stock news, Kingfisher ended the day atop the blue-chip index after it said the head of its Castorama business in France, Veronique Laury, will take over as group chief executive before the end of the current financial year, tasked with expanding the company's online sales, integrating recent acquisitions and expanding some of its brands into new markets.

In a statement, the company said current CEO Ian Cheshire will step down by the end of the financial year in January. Cheshire told journalists that after seven years as CEO, and 17 years in the Kingfisher business, he has decided that he did not want to remain in place through the next five-year strategic plan the company has started. Kingfisher's shares closed 4.3% higher.

Barratt Developments also closed the day amongst the biggest gainers in the FTSE 100 with its shares gaining 2.8%. The housebuilder said it plans to return around GBP950 million to shareholders over the next three years, as it more than doubled its final dividend following a strong year underpinned by recovery in the UK housing market.

The company, which will drop out of the FTSE 100 on September 22, said it will pay a final dividend of 7.1 pence for the year that ended June 30, compared with 2.5 pence the year before, making a total dividend of 10.3 pence. The company paid a total dividend of 2.5 pence a year earlier. Under a special cash payment programme, Barratt hopes to make a special cash payment alongside its full-year 2015 results of GBP100 million, followed by a special cash payment of GBP125 million alongside its full-year 2016 results and a special cash payment of GBP175 million with its full-year 2017 results.

The capital return plan came as the housebuilder posted pretax of GBP390.6 million for the year to June 30, up from GBP192.0 million a year earlier, as revenue rose 21% to GBP3.16 billion from GBP2.60 billion.

Thursday's economic calendar brings Europe back into focus with German consumer price index data for August being released at 0700 BST while the European Central Bank monthly report will be released at 0900 BST.

In the corporate calendar, FTSE 100-listed Next and Wm Morrison Supermarket and AIM-listed Futura Medical will release half-year results, while FTSE 250 asset manager Ashmore Group will be reporting full-year results.


By Neil Thakrar; neilthakrar@alliancenews.com

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