Burberry to drop out of FTSE100 after 14 years
BURBERRY ended the week down more than 5pc as it prepares to leave the FTSE 100.
The luxury fashion company has been rocked by customers cutting back spending on its renowned trenchcoats and a slowdown in sales across the industry fuelled by weaker demand in China.
Shares – which slid 1.2pc, or 8p, to 677.8p – have more than halved in value this year.
The stock hit its lowest level in 14 years last month after the group issued a profit warning and scrapped its dividend.
Burberry, worth £2.5bn, is expected to be demoted into the FTSE 250 when indicative changes for the latest reshuffle are announced next week.
It is likely to be replaced by the Lloyd’s of London insurer Hiscox, which is valued at nearly £4bn. Its shares fell 0.3pc, or 3p, to 1177p.
London’s main markets ended the month on a high although the FTSE 100 edged down 0.04pc, or 3.01 points, to 8376.63. The FTSE 250 rose 0.3pc, or 55.46 points, to 21086.54.
But the blue-chip index remains below its record close of 8445.80 in mid-May.
House prices in the UK fell for the first time since April, according to Nationwide.
The latest data show average prices dipped 0.2pc this month.
But they rose by 2.4pc in the year to August, up from 2.1pc in July.
Housebuilders rallied with Persimmon adding 0.5pc, or 8p, to 1644p, Taylor Wimpey climbing 0.8pc, or 1.3p, to 161.05p and Bellway gaining 0.1pc, or 2p, to 3034p.
Investors will also hope to gain greater clarity on the state of the industry with updates next week from Barratt Developments (up 1pc, or 5p, to 507.2p), Vistry (up 1pc, or 14p, to 1359p), and Berkeley (up 0.5pc, or 24p, to 4894p).
Property stocks were also on the rise as Hammerson, which owns the Bullring shopping centre in Birmingham, climbed 1.2pc, or 0.34p, to 28.38p, British Land added 2.8pc, or 11p, to 411.2p and Land Securities gained 2pc, or 12.5p, to 629.5p.
Filtronic landed another order from Elon Musk’s SpaceX just months after the pair announced a strategic partnership.
Following a £7.1m deal in July, the AIM-listed firm secured a fresh £6.4m contract to continue helping the aerospace company’s Starlink business provide high-speed internet to users worldwide. The order is expected to be completed next year, with Filtronic trading ahead of market forecasts for the year to the end of May 2025. Shares rose 4.6pc, or 3.5p, to 79.5p.
Longboat Energy is changing its name to Seascape Energy Asia as it focuses on its operations to extract gas off the coast of Sarawak in Malaysia. Shares slid 0.3pc, or 0.05p, to 17.75p.
Media group STV Group has poached the executive behind the launch of ITV’s streaming service.
Rufus Radcliffe, who set up ITV X in 2022, will become the chief executive at the start of November. He will replace Simon Pitts, who steps down at the end of October to lead the media giant Global. Shares gained 3.5pc, or 9p, to 267p.