FTSE 100 Live Monday
- Lidl plans £500m expansion
- Plus500 gets volatility boost
- Deliveroo in DoorDash talks
Market update: M&S lower but FTSE 100 run goes on, Deliveroo below offer price
10:12 , Graeme EvansThe selling of Marks & Spencer shares continued in a still-improving FTSE 100 index today as the disruption caused by a cyber incident entered a second week.
Shares fell 3% or 9.9p to 376.1p and have now lost more than 9% over the past week, although the retailer’s valuation is still up by 45% since last year.
Shoppers remain unable to place orders via M&S.com websites or apps.
A message on the website says: "Our product range remains available to browse online. We are truly sorry for this inconvenience. Our stores are open to welcome customers.
“We informed customers on Tuesday that there was no need for them to take any action. That remains the case, and if the situation changes we will let them know.”
The FTSE 100 index added another 0.4% or 33.44 points to 8448.69, having risen in its ten previous sessions in the benchmark’s longest run of gains since 2019.
Ladbrokes business Entain led the top flight with a rise of 3% or 17.6p to 605.8p, while Primark owner Associated British Foods added 2% or 43p to 2246p and Diageo lifted 44p to 2109p.
Housebuilder Berkeley cheered 66p to 4076p after UBS raised its recommendation on the stock to Buy with a price target of 4965p.
The brownfield developer’s improvement came on the day that figures showed that housebuilding in London has slumped to its lowest level since 2009.
Wall Street futures are slightly lower amid ongoing uncertainty over US trade policy and nervousness ahead of this week’s economic data and earnings.
As well as figures from Apple and Microsoft among others, Friday’s US payrolls report will be key to determining whether the Federal Reserve makes a June interest rate cut.
In the UK, HSBC and BP are due to report tomorrow before Barclays, Lloyds and Shell later in the week.
The FTSE 250 index rose 0.5% or 106.40 points to 19,716.09, led by Deliveroo after shares jumped 17% on Friday evening’s disclosure of a £2.7 billion takeover approach by DoorDash.
Deliveroo, which was co-founded by chief executive Will Shu in 2013 and operates in nine countries, said it was minded to accept the proposal.
Shares rose 24.5p to 171.1p despite DoorDash’s approach being pitched at 180p. The stock was 390p in the company’s high-profile stock market flotation in 2021.
Panmure Liberum said that 180p “is by no means a knockout valuation”, opening the door for a rival bidder. The broker had a price target of 200p prior to the takeover developments.
M&S down another 3% after cyber incident
09:19 , Graeme EvansMarks & Spencer shares are bottom of the FTSE 100 index amid the ongoing disruption caused by last week’s cyber incident.
The shares fell 3% or 10.1p to 375.9p and have lost more than 9% over the past week.
Shoppers remain unable to place orders via M&S.com websites, apps or the phone.
A message on the company’s website says: "Our product range remains available to browse online. We are truly sorry for this inconvenience. Our stores are open to welcome customers.
“We informed customers on Tuesday that there was no need for them to take any action. That remains the case, and if the situation changes we will let them know.”
Plus500 lifts guidance amid markets volatility
09:01 , Graeme EvansOnline trading platform Plus500 has said full-year results will be better than forecast after a boost from turbulent financial markets.
The London-listed group reported an “excellent” start to the year, with revenues up 13% at $205.8 million (£154.8 million) in the first quarter.
This helped underlying earnings jump by 23% to $93.8 million (£70.5 million).
Shares fell 29p to 3019p, having risen by 18% this year.
Lidl outlines £500m expansion plan
08:40 , Graeme EvansLidl, which is the country’s sixth biggest supermarket chain, has revealed plans to invest £500 million as it accelerates its expansion across the UK.
The discounter, which has more than 980 stores and 14 distribution centres, said it will open 40 stores nationally in the current financial year.
This year will also see the completion of the expansion of Lidl’s Belvedere regional distribution centre, which has more than doubled in size.
FTSE 100 progress continues, Deliveroo up 16%
08:16 , Graeme EvansThe FTSE 100 index is up 0.4% or 34.19 points to 8449.44, having risen in its ten previous sessions during the benchmark’s longest run of gains since 2019.
Stronger stocks included BAE Systems, which rose 16p to 1698.5p after Deutsche Bank lifted its price target to 1900p.
BP improved 2p to 366.45p and HSBC added half a penny to 834.5p ahead of their first quarter earnings updates due tomorrow.
Marks & Spencer shares have fallen another 9p to 377p amid the ongoing disruption caused by last week’s cyber incident. The shares have lost 9% in the past week.
In the FTSE 250 index, Deliveroo shares rose 16% or 23p to 169.6p after Friday’s disclosure of a £2.7 billion takeover bid by DoorDash.
The price is short of the proposed 180p a share, which the board of Deliveroo said it “would be minded to recommend” if there is agreement on other terms.
DoorDash will need to make a firm offer by 23 May.
Markets struggle for momentum amid earnings jitters
07:45 , Graeme EvansAsia stock markets have seen subdued trading amid uncertainty over US trade policy and nervousness ahead of this week’s economic data and earnings.
As well as figures from Apple and Microsoft among others, Friday’s US payrolls report will be key to determining whether the Federal Reserve makes a June interest rate cut.
The Hang Seng index is up 0.3% and the Shanghai Composite down 0.1%, while the FTSE 100 index is seen about 0.1% higher. Wall Street futures are pointing slightly lower.
IG said: “Corporate earnings have generally been positive, but visibility concerns and the threat of tariffs are prompting recession fears.
“Markets largely assume peak tariffs have passed, but analysts still expect significant levies, particularly on China.”
Deliveroo in focus after £2.7bn takeover approach
07:14 , Graeme EvansDeliveroo shares will be in focus after Friday evening’s disclosure that it has been received a £2.7 billion takeover proposal from US-based DoorDash.
The board said it would be minded to recommend an offer of 180p a share to shareholders, provided there was agreement on other terms.
DoorDash will need to make a firm offer by 23 May.
The shares open today’s session at 146.6p, having fallen to 113p earlier this month. They joined the stock market in March 2021 at a price of 390p a share.
Deliveroo, which was co-founded by chief executive Will Shu in 2013, operates in nine countries and works with about 135,000 riders across the world.
Panmure Liberum said that 180p “is by no means a knockout valuation”, opening the door for a rival bidder. The broker had a price target of 200p prior to the takeover developments.
FTSE 100 seen higher after two-week run, gold near $3300 an ounce
07:00 , Graeme EvansThe FTSE 100 index starts the week on its best run since 2019 after closing Friday’s session in positive territory for the tenth trading day in a row.
The top flight is forecast to open about 0.1% higher at today’s opening bell after US markets closed higher before the weekend.
The Nasdaq Composite rose 1.3%, the S&P 500 index gained 0.7% and the Dow Jones Industrial Average edged 0.1% higher.
This week’s corporate diary includes figures from Microsoft, Meta Platforms, Amazon and Apple, while Barclays, GSK and BP are among the UK stocks reporting.
Gold starts the week at $3292 an ounce, while Brent Crude is at $67.23 a barrel and the pound at $1.33.
