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London open: Stocks drift lower; G4S surges on results
Stocks in London drifted lower in early trade as the August lull set in.
At 0830 BST, the FTSE 100 index was down 0.3% to 6,831.66.
Augustin Eden, research analyst at Accendo Markets, said the index was taking “a break at the last significant resistance before the key 7,000 level”.
He said bulls will be looking to 6,800 to hold as support for a breakout above 6,875 on Wednesday.
At the same time, oil prices retreated, with West Texas Intermediate down 0.8% at $42.43 a barrel and Brent crude 0.7% weaker at $44.65.
In corporate news, security firm G4S surged after it posted a 44% increase in first half earnings and said it has made substantial progress with the ongoing transformation of the group.
Shares in Peppa Pig owner Entertainment One were sharply higher after the company said it has rejected a takeover offer that values it at 236p per share, which was reported to have been made by broadcaster ITV.
FTSE 250 payment solutions provider Paysafe – known as Optimal Payments before it merged with competitor Skrill in August last year – was on the front foot after posting a rise in first-half profit as it upgraded its guidance for 2016 revenue and adjusted earnings.
Support services group Interserve racked up healthy gains as it said it would exit its energy-from-waste business after taking a £70m exceptional charge.
Lookers was a touch weaker after announcing that it has entered into a conditional agreement to sell its parts business to Alliance Automotive, on a debt free and cash free basis, for a consideration of £120m payable in cash on completion.
Land Securities nudged lower after signing up three new long-term tenants for its 20 Eastbourne Terrace office building next to London’s Paddington underground station.
William Hill was also in the red after it rejected a £3.2bn takeover bid from Rank and 888 late on Tuesday.
