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Pin to quick picksWPP Share News (WPP)

Share Price Information for WPP (WPP)

London Stock Exchange
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Share Price: 724.40
Bid: 722.00
Ask: 722.40
Change: -16.60 (-2.24%)
Spread: 0.40 (0.055%)
Open: 740.00
High: 740.40
Low: 721.60
Prev. Close: 741.00
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Britain's FTSE, propped up by ECB, dips on Capita slump

Thu, 08th Dec 2016 10:37

(ADVISORY- Follow European and UK stock markets in real time onthe Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)

* FTSE 100 down 0.1 pct

* Capita falls 7 pct after profit warning

* Sports Direct down after weak results

* Sentiment bullish ahead of ECB announcement

By Kit Rees

LONDON, Dec 8 (Reuters) - UK shares fell on Thursday,breaking a three-day winning streak as shares in outsourcingfirm Capita tumbled on a profit warning, though with theECB expected to extend its stimulus programme, underlyingsentiment stayed positive.

The blue chip FTSE 100 index was down 0.1 percent at6,895.00 points by 1008 GMT, lagging its European peers butholding close to its highest level in one month.

Capita, the top faller, plunged 7.4 percent and hit itslowest since July 2006 after a second profit warning in threemonths, blaming Brexit-related client indecision. It said itwould sell assets and trim costs to protect its balance sheet.

Outsourcing firms have been under pressure since Britainvoted to leave the European Union in June. Shares in peer Mitie, which issued a second profit warning in November, fell3.1 percent.

Several midcap firms also saw large losses. Disappointingresults hit shares in sporting goods retailer Sports Direct, which dropped more than 8 percent. Its shares are down50 percent so far in 2016, having been hit by a plunge insterling following the Brexit vote as well as criticism over thetreatment of its workers.

Betting companies William Hill and Ladbrokes CoralGroup fell 8.7 percent and 7.2 percent following a mediareport about a clampdown on betting machines.

Tour operator TUI rose 2 percent after extendingits existing profit forecast for another year.

Advertiser WPP rose 2.2 percent to top the blue chipindex after an upgrade to "buy" from "hold" from Jefferies,whose analysts said they expected limited on the firm from areported U.S. Justice Department investigation into theindustry.

The report knocked back WPP shares in the previous session.

Traders also focused on the European Central Bank's policymeeting later in the day, in which it is expected to extend itsasset buying programme.

"We're very bullish actually, especially with the ECBannouncement today," John Moore, trader at Berkeley Capital,said.

"We believe that they will be extending the quantitativeeasing for another six months, but (ECB President Mario Draghi)may even mention some additional measures ... (and) we might seeanother push higher (on the index) to maybe 7,000 or 6,990." (Reporting by Kit Rees; editing by John Stonestreet)

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