Britains FTSE 100 index opened higher on Friday but remained steady through the course of trading as investors eyed rising tensions between Russia and the West after Washington extended the list of prominent Russian individuals to be sanctioned due to their close ties to President Vladimir Putin. Companies with a big exposure to Russia could come under additional pressure.
The UK blue chip index stood at 6 559.80 points at 9:27 GMT, up 0.26% on the day, having shifted in a range between days high and low of 6 566.30 and 6 542.80 respectively. The index lost 30.69 points on Thursday, or 0.47%, and closed the session at 6 542.44 points, marking a second consecutive daily drop. Prices are set to settle the week higher, up 0.6% so far.
The US expanded its list of individuals to be sanctioned due to their ties to President Vladimir Putin. Broadening of the sanctions to more than 20 prominent Russians marked an escalation of diplomatic pressure against President Putin for Moscow’s intervention in Ukraine.
Gennady Timchenko, allegedly a close ally of President Putin and co-founder of Swiss trading firm Gunvor, was among the newly sanctioned individuals. Gunvor, which had a turnover of $92 billion in 2012, said that Timchenko had already sold his entire stake to his partner, Torbjorn Tornqvist.
Meanwhile, credit rating agency Fitch kept its rating on Russias long-term foreign and local currency at “BBB” but revised down its outlook to “negative” from “stable”.
Stock of companies with large exposure to Russia could fall under additional pressure, especially if the diplomatic relations between Moscow and the West further deteriorate. Cigarette maker British American Tobacco and drinks can maker Rexam are among these UK blue-chips.
Top gainers, losers
The FTSE 100s top gainers so far today were Resolution Ltd, Anglo American and Fresnillo Plc.
Resolution LTD rose by 2.62%, or 8.35 pence, by 9:31 GMT to trade at 326.45 pence, while Anglo American jumped by 31.50 pence, or 2.23%, to 1 443.00 pence. Fresnillo Plc stood at 884.25 pence, up 2.05% on the day or 17.75 pence.
Meggitt rose by 1.61%, or 7.55 pence, to 477.05 pence after UBS upgraded its rating on the companys shares to “buy” from “neutral”, although it trails the FTSE 100 indexs performance.
Oil and gas producer BG Group gained 0.38%, or 4.00 pence, by 9:24 GMT to 1 069 pence. The company announced it will cut nearly 300 jobs in the UK and reduce its headcount in Australia after it had warned that turmoil in Egypt would negatively impact production in 2014 and 2015.
The UK blue chip indexs top losers for today were Burberry Group, Aberdeen AM and RBS PLC.
Burberry Group fell by 2.01%, or 28.50 pence, to 1 391.50 pence by 9:33 GMT, while Aberdeen Asset Management Plc lost 1.68%, or 6.30 pence, to trade at 367.70 pence. Royal Bank of Scotland Group PLC slid 1.57%, or 4.80 pence, to 300.50 pence.
The Independent reported that a family have won a landmark case allowing them to sue Royal Bank of Scotland for millions over mis-selling interest rate swaps that left them with huge borrowing costs on a 55-billion-pound loan.
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