FTSE 100 treads water as Frasers shares tumble after profit downgrade

London’s FTSE 100 was left treading water on Thursday as gains for insurers helped offset a sharp drop in shares for retail giant Frasers.

The blue-chip index lifted 13.57 points, or 0.16%, to close at 8,349.38 – with Hiscox, Admiral and Aviva among the day’s biggest risers.

Shares in Frasers Group tumbled by more than a tenth after the retail giant cut its profit outlook and revealed a slump in sales for the past half-year.

Mike Ashley’s business is also one of three stocks set to be demoted from the top index later this month, after seeing its share price weaken in recent months.

Chief executive Michael Murray said “weaker consumer confidence leading up to and following the Budget” means it was now expecting to generate lower yearly profits than previously thought.

Meanwhile, the Prime Minister set out renewed pledges to improve living standards, while insisting his long-term aim was still to make the UK the fastest-growing G7 economy.

But Sir Keir Starmer declined to put a specific numerical target on living standards, saying only that he wanted to see real household disposable income and GDP per capita rise in every region of the country.

Oil prices somewhat stabilised after martial law was removed in South Korea shortly after being declared by the president on Tuesday.

The surprise move led prices to rise sharply amid concerns over supply of the commodity during political instability.

But the price of Brent crude oil was down about 0.3% to 72 US dollars per barrel on Thursday.

Axel Rudolph, senior technical analyst for IG, said: “The removal of martial law in South Korea by its president and Opec+ maintaining its current oil production levels in the first quarter of 2025, have helped the price of oil stabilise, following its recent sell-off.

“The price of gold, however, dropped on Thursday ahead of Friday’s closely watched US non-farm payrolls.”

It was a stronger day of trading for other top European stock markets. In Paris, the Cac 40 rose 0.37%, and in Frankfurt, the Dax was up 0.63% at close.

Over in New York, the S&P 500 was more or less flat, while Dow Jones was about 0.3% lower by the time European markets closed.

The pound was strengthening against the US dollar, gaining 0.4% against the currency at 1.275. While sterling was down around 0.1% against the euro, at 1.207.

In other company news, shares in Watches of Switzerland surged after the luxury watch retailer said it had benefited from stronger demand in the US.

Sales in the region grew by more than a tenth over the first half of its financial year, as it benefited from its stock being rebuilt.

Investors were buoyed by the improved sales figures, and shares in Watches of Switzerland closed 14.2% higher.

The biggest risers on the FTSE 100 were Hiscox, up 55p to 1,141p, Whitbread, up 111p to 2,981p, Diageo, up 87p to 2,428.5p, Admiral Group, up 91p to 2,715p, and IAG, up 7.8p to 282.9p.

The biggest fallers on the FTSE 100 were Frasers, down 79p to 662p, British Land, down 19.4p to 368.8p, Segro, down 22.6p to 752.2p, DS Smith, down 14p to 563p, and LondonMetric Property, down 4.2p to 188.3p.