Londons FTSE 100 Hits OneMonth Low; Morrisons Surges 31


Morrisons surges on takeover bid from private equity firm

Capita gains on strong revenue forecasts

FTSE 100 down 0.3, FTSE 250 off 0.2

June 21 Reuters Londons FTSE 100 fell to a onemonth low on Monday, as losses in travel and mining stocks outweighed gains in retail shares, while supermarket chain Morrisons was the top gainer on the midcap index following a takeover pursuit.

Morrisons surged 31.7 as U.S. private equity firm Clayton, Dubilier Rice CDR was set to push ahead with its takeover pursuit, despite its initial offer being rejected.

The bluechip index fell 0.3 to its lowest since May 19. Travel stocks declined the most, down nearly 7.5, while miners slid 1.7.

The domestically focussed midcap index slipped 0.2.

The bulls in the market have enjoyed a good long run and it must come to an end at some point, and we are seeing a little bit of rebalancing which is leading to some weakness, said Michael Baker, an analyst at ETX Capital.

A recent spike in inflation that surged past the Bank of Englands target in May raised concerns among investors that the central bank could pull back its monetary support in a meeting due later this week.

Central bank commentaries have changed the market view on inflation and it is a concern right now that the monetary support might be coming to an end, added Baker.

Britains top central bank officials look set to remain divided this week over whether to pull the plug on their 875 billionpound 1.2 trillion government bond…


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