News Column

FTSE 100 falls for fourth day, with Aberdeen Asset hit by Argentina woes

January 24, 2014

Nick Fletcher, theguardian.com

Leading shares are heading lower for the fourth day, with Aberdeen Asset Management the biggest faller. The emerging markets specialist has fallen 17.8p at 403.6p after Argentina's currency plunged as its central bank abandoned its policy of supporting the peso by intervening in the foreign exchange markets. Other Latin American currencies also came under pressure. SABMiller , which is also strongly represented in emerging markets, is down 76.5p at 2901.5p. With its recent run towards record highs, the FTSE 100 faltered again as inverstors decided it might be a good time to cash in some profits. The index is currently 20.27 points lower at 6753.01, with some of the optimism about global growth undermined by disappointing Chinese and US manufacturing surveys. In the UK , Bank of England governor Mark Carney seemed to be abandoning his forward guidance although he repeated there was no need for early interest rate rises despite falling unemployment levels. Mike van Dulken , head of research at Accendo Markets, said: Contracting China Manufacturing PMI followed by a weak US print yesterday revived global growth concerns. This was exacerbated by volatility in emerging market foreign exchange rates and overnight by more fears on China . Elsewhere Royal Mail is down 1p at 587p after it reported a 2% rise in sales for the nine months to the end of December, a performance some analysts said was slightly disappointing. Capita has shrugged off a report that regulators could make it pay 100m to investors in a fund it operated that collapsed, adding 4p to 10.41. Cairn Energy has lost 12.1p to 250p after it said it had been contacted by Indian authorities to discuss income tax assessments relating to 2007. Cairn said it was co-operating to provide the necessary information and would update the market in due course. It has been instructed to hold its shares in Cairn India . Meanwhile Morgan Stanley cut its target price from 375p to 350p.


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Source: Guardian Web


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