StockMarketWire | 21/10/2016 - 22:50
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The blue chip index fell into the red after earlier gains as US investor sentiment soured on the British American Tobacco (BATS) deal.

The FTSE 100 closed 0.1% lower at 7,020.

Pharmaceutical firms Hikma (HIK) and Shire (SHP) were among the biggest fallers.

West Texas Intermediate (WTI) crude oil nudged lower to $50.57, while Brent crude oil gained 0.3% to $51.56 per barrel, respectively.


British American Tobacco (BATS) declined 2.8% before shares started to recover after announcing a $47bn offer to buy the 57.8% of US peer Reynolds American (RAI) it does not already own. It also delivered a robust third quarter trading update, showing good growth and increasing market share.

Media reports suggested that Burberry (BRBY) was working on a possible merger with US firm Coach, prompting shares in the luxury fashion house to climb 2.3% to £14.83.

Intercontinental Hotels (IHG) failed to impress investors following concerns over slowing growth in the third quarter.


Acacia Mining (ACA) delivered impressive third quarter results, as gold production climbed by a quarter to 204,726 ounces and sales of the metal jumped by 24%.

Gaming technology firm Playtech (PTEC) was flat after revealing a £14.9m deal to buy bingo software play ECM Systems.


Shares in Time Out (TMO) nudged higher following an all paper £2.4m deal for London-based booking platform YPlan.

Bushveld Minerals (BMN) raised £750,000 via a shares placing, which will be used for general working capital purposes.

Shares in Trinity Capital (TRC) soared 120.6% to 3.86p on the disposal of its investments in Trinity Capital One and Trinity Capital Five for approximately £8.8m.

Asian Investment Management Services purchased over one million shares in Chagala (CGLO) representing 6.02% of the company.

Customer acquisition specialist Digital Globe Services (DGS) rallied 79% to 59p and Ibex Global Solutions (IBEX) gained 27% to 109p as a major shareholder in both, The Resources Group International, announced £18.1m and £44.3m deals respectively to take them private.

Recruiter RTC (RTC) was on the red following a warning on profits after delays to infrastructure projects. Shares in the firm plummeted 18.2% to 43.78p.

Brick maker Michelmersh (MBH) warned investors about full year profits, which it blamed on increased competition and pricing levels not reaching the levels anticipated, causing a drop of 19% to 51p.

Diagnostic testing kit maker Immunodiagnostic Systems (IDH) failed to arrest declining revenue (on a constant currency basis) in its first half, triggering a share price drop of 17% to 172p.