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Consumer Cyclicals
Mid Cap
Market Cap £715.6m
Enterprise Value £1.03bn
Revenue £875.9m
Position in Universe 475th / 1816

UPDATE 1-UK stocks fall as Brexit fears hammer sterling

Tue 3rd September, 2019 10:51am
* FTSE 100, FTSE 250 down 0.2%
    * Financials, miners biggest drags
    * DS Smith drops after trading update
    * Ferguson gains on demerger plans
    * Inkjet technology firm Xaar plunges to 10-yr low

 (Adds company news items, updates share moves, adds analyst
    By Josephine Mason and Muvija M
    Sept 3 (Reuters) - London-listed stocks most exposed to the
British economy fell with the pound on Tuesday as investors
worried the country was heading for a chaotic no-deal exit from
the European Union or a general election that raises fresh
    It is relatively rare for the export-heavy FTSE 100 to move
in lockstep with sterling, but losses in companies more exposed
to the domestic economy, such as banks and housebuilders, offset
gains in big internationally-focussed firms. 
    The index was down 0.1% at 0930 GMT after climbing initially
on sterling's fall to a three-year low, underscoring deepening
concerns about the fall-out across the economy from a no-deal
Brexit and the growing possibility of an election.
    The midcap index  .FTMC , traditionally harder hit by Brexit
concerns, was also down 0.2%. That compared to a half percentage
fall in Europe's main STOXX index.
    An election would thrust Brexit onto an uncertain path with
three main options: a Brexit-supporting government under Boris
Johnson, a Labour government led by socialist Jeremy Corbyn, or
a hung parliament that could lead to another referendum.*:nL5N25U0GW
    "In the short term, for many the idea that Corbyn will
possibly be the next PM is more scary than a no-deal Brexit,"
said Markus Huber, trader at City of London Markets.
    Stocks considered most exposed to any hit to Britain's
wealth resulting from Brexit were the biggest fallers with
Lloyds  LLOY.L  and Royal Bank of Scotland  RBS  dropped 1.9%
    RBS and utilities also face the threat of nationalisation if
a Labour government was to take charge. 
    "UK stocks with domestic exposure seem to be in the short
term in a no-win situation: on one hand a no-deal Brexit will
certainly have a negative impact at first, on the other hand
Corbyn as a new PM is to be expected to be highly negative for
the UK economy and not just in the short-term," said Huber.
    Losses in homebuilders, which are vulnerable to a crash in
house prices from an economic shock, were led by a 1.2% drop in
the sector's biggest player Barratt  BDEV.L , Britain's biggest
    The country's major retailers Morrison  MRW.L  and Marks &
Spencer  MKS.L  were also down over 1%. M&S also faces
relegation from the FTSE 100.
    Goldman Sachs has raised its odds of a no-deal Brexit to 25%
from 20%, but analysts from Swiss bank UBS predicted the market
might prove to be oversold.*:nL5N25U1IN
    "We think that investors are placing a higher probability on
a no-deal Brexit at the end of October than is currently
warranted," the UBS analysts said in a note laying out a number
of Brexit scenarios.
    "In our view, the most likely course in the weeks ahead is
that parliament will succeed in blocking a no-deal Brexit,
leading to a general election. Only then might we have some
    Mining heavyweights, which count on China for their profits,
and Asia-focussed financials also weighed on the index as trade
worries and protests in Hong Kong continued.*:nL3N25U11E
    Among single stock moves, DS Smith  SMDS.L  slid 3% on the
FTSE 100 as investors took note of the packaging company's
comments that volatility in the macro-economic environment
continued even as it reaffirmed annual targets.  
    Plumbing products company Ferguson  FERG.L , meanwhile,
outperformed the index with a 2% rise after saying it would
separate its UK operations. 
    Among midcaps, Restaurant Group  RTN.L  tumbled 13%, set for
its worst day since November, and sat at the bottom of midcap
index after posting a loss versus a year-ago profit, while
small-cap XAAR  XAR.L  plunged 29% to a 10-year low after
warning on annual results.    

 (Reporting by Muvija M in Bengaluru and Danilo Masoni in Milan;
Editing by Sriraj Kalluvila)
 ((; within UK +44 20 7542 1810, outside UK +91
80 6749 3638;))
For related prices, Reuters users may click on - * 
 UK stock report      .L     
 FTSE index:          0#.FTS6  
 techMARK 100 index:  .FTT1X          FTSE futures:      0#FFI:  
 Gilt futures:        0#FLG:          Smallcap index:     .FTSC  
 FTSE 250 index:      .FTMC           FTSE 350 index:     .FTLC  
 Market digest:       .AD.L           Top 10 by vol:      .AV.L  
 Top price gainers:   .NG.L           Top % gainers:      .PG.L  
 Top price losers:    .NL.L           Top % losers:       .PL.L  
 * For related news, click on - *
 UK hot stocks:      [HOT and GB]     Wall Street:           .N 
 Gilts report:        GB/             Euro bond report  GVD/EUR 
 Pan European stock report:  .EU 
 Tokyo stocks:        .T              HK stocks:            .HK 
 Sterling report:     GBP/            Dollar report:       USD/ 
 * For company prices, click on - *
 Company directory:   UKEQ           By sector:           FTAX  
 * For pan-European market data, click on - *
 European Equities speed guide................  EUR/EQUITY  
 FTSE Eurotop 300 index...........................  .FTEU3  
 DJ STOXX index...................................  .STOXX  
 Top 10 STOXX sectors........................  .PGL.STOXXS  
 Top 10 EUROSTOXX sectors...................  .PGL.STOXXES  
 Top 10 Eurotop 300 sectors..................  .PGL.FTEU3S  
 Top 25 European pct gainers....................  .PG.PEUR  
 Top 25 European pct losers.....................  .PL.PEUR ))
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