October 17, 2016 / 9:05 AM / in a year

Pearson slump, weak energy shares hit FTSE

LONDON (Reuters) - Publisher Pearson (PSON.L) led Britain’s top share index lower on Monday after saying market conditions continued to be challenging.

A man shelters under an umbrella as he walks past the London Stock Exchange in London, Britain August 24, 2015. REUTERS/Suzanne Plunkett

The blue-chip FTSE 100 index .FTSE was down 0.9 percent at 6,947.55 points at the close after climbing to a record high last week. Britain's mid-cap index .FTMC was down 1 percent.

Pearson was down 8.4 percent after reporting a 7 percent drop in its nine-month organic sales and saying retailers had further corrected their inventory demands in July and August.

“Pearson is now relying on its core educational businesses for forward momentum, but convincing customers to continue paying for its content represents a huge challenge,” Hargreaves Lansdown analyst George Salmon said.

“Despite enjoying the benefits of a weaker pound, sales have been falling recently and there was little in today’s update to suggest that the tide is changing.”

Energy shares also lost ground after oil prices fell, pulled down by a rising rig count in the United States, a strong dollar and record OPEC output, which comes amid slowing global economic growth that could erode demand for fuel. [O/R]

The UK oil and gas index .FTNMX0530 fell more than 1 percent, dragged down by a 1.2 to 1.7 percent fall in shares of BP (BP.L), Royal Dutch Shell (RDSa.L) and Tullow Oil (TLW.L).

Among mid-cap companies, Debenhams (DEB.L) fell over 2 percent after Morgan Stanley downgraded its rating on the stock to “equal-weight” from “overweight”.

Reporting by Atul Prakash; editing by John Stonestreet

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below