The FTSE 100 Index Closes 0.76% Lower

The FTSE 100 Index decreased -79 points or 0.76 percent on Thursday to close at 10393 points. The decline was led by Rentokil Initial (-7.45%), Prudential (-6.74%) and Fresnillo (-4.48%). On the upside, the strongest performers were Schroders (28.56%), Admiral (3.19%) and DCC (2.70%).

The FTSE 100 fell 0.7% on Thursday after closing at a record high in the previous session, as declines in energy, mining and banking stocks weighed on the index. Oil majors Shell and BP lost 1% and 3.4%, respectively, as crude prices weakened. Mining stocks also dropped sharply amid softer metals prices, with Rio Tinto down 1.1%, Antofagasta 3.7%, Glencore 2.4% and Anglo American 2.1%, while precious metal miners Fresnillo and Endeavour fell 4.5% and 3.4% respectively. Banks added to the pressure, with HSBC and Barclays both down 2.7%, Standard Chartered falling 4.2%, NatWest down 1.3% and Lloyds lower by 0.7%. British American Tobacco slipped 0.7% after warning growth would be at the lower end of guidance as cigarette volumes decline. Unilever was little changed after reporting stronger sales. On the upside, Schroders surged more than 28% after Nuveen agreed to buy the asset manager in a £9.9 billion deal.

The FTSE 100 traded at a fresh record on Thursday as gains in banks and financial stocks offset weaker economic data and property losses. UK GDP rose just 0.1% in the fourth quarter, below expectations, but investors focused on strong corporate news and takeover activity. Schroders surged as much as 31% after agreeing to a £9.9 billion takeover by Nuveen, highlighting continued overseas interest in undervalued London listed firms and lifting the broader financial sector, with St James’s Place also rebounding. RELX added support after earnings, helping push the index higher. However, the FTSE 100 underperformed some European peers as property stocks including British Land, Land Securities, Segro and LondonMetric declined following weakness in US real estate shares. Unilever also weighed on the index, falling up to 3% after issuing conservative sales growth guidance at the lower end of its long term target range, limiting broader gains.