Sky's shares jump after earnings, while Standard Chartered's stock slips
U.K. stocks looked marooned Thursday, as the equity market's main benchmark showed little change, having rallied more than 2% so far this month to within striking distance of a fresh record.
FTSE eyes all-time high: The FTSE 100 index edged up by less than 0.1% to 7,535.72, keeping the gauge about 0.2% below its record close, achieved on May 26.
The London benchmark has recently been boosted by a slide in the pound and by renewed confidence that Prime Minister Theresa May can hold onto cabinet support for her Brexit plans.
The gauge is up 0.2% for the week and showing an October gain of 2.2%. It closed down less than 0.1% on Wednesday (http://www.marketwatch.com/story/ftse-100-in-holding-pattern-with-record-high-in-sight-2017-10-11).
What strategists are saying: The FTSE 100 was "becalmed" on Wednesday, and additional muted action might be needed after the benchmark's recent advance, according to Ian Williams, a Peel Hunt strategist.
"A spell of consolidation may well be necessary," he said in a note Thursday.
Stock movers: Sky PLC's stock (SKY.LN) was among the notable gainers, rising 0.7%. On Thursday, Europe's biggest pay-TV company posted an 11% gain in a key profit metric for the first quarter of fiscal 2018. Sky said new subscriptions were up 51% on the year and it is on track to meet its full-year targets (http://www.marketwatch.com/story/sky-earnings-up-on-51-rise-in-new-subscriptions-2017-10-12).
Sky's update "suggests things remain pretty hard in ad land, but "these were pretty solid results," said Neil Wilson, a senior market analyst at ETX Capital, in a note.
Standard Chartered PLC's stock (STAN.LN) was among the biggest decliners, falling 0.9%. In a rare move (http://www.marketwatch.com/story/imf-names-9-biggest-banks-that-warrant-heightened-attention-from-regulators-2017-10-11), the International Monetary Fund, in its twice-yearly Global Financial Stability Report, said the Asia-focused bank has a "weak earnings" outlook. Credit Suisse analysts also have warned the lender's current valuation is too generous.
Sterling edges up: The pound traded at $1.3246, up modestly from $1.3223 late Wednesday in New York.
A stronger pound can weigh on the FTSE 100, as many of the index's multinational companies make most of their sales in foreign-denominated currencies.
(END) Dow Jones Newswires
October 12, 2017 04:45 ET (08:45 GMT)