FTSE 100 at the close: Burberry, BT and JD Sports

By Michael Morton
18th May 2023

Related Topics: JD Sports [LON:JD.], BT [LON:BT.A], Burberry [LON:BRBY], Tickmill

By Patrick Munnelly, Market Analyst, Tickmill

The FTSE 100 finished up 19 points at 7742.30 at the end of today’s session.

On a day when global markets are bid on hopes regarding resolution for the US debt ceiling negotiations the FTSE continues to lag hovering just shy of the flatline.

Burberry Group LON:BRBY sits at the bottom of the table, placing it alongside BT as one of the top fallers in the FTSE blue chip index. The waning momentum of China’s recovery, following the lifting of Covid-19 restrictions in December, is a significant concern for Burberry, given that China is its largest market. If the Chinese economic recovery continues to falter, Burberry may face additional challenges. Burberry’s decision not to revise its guidance for the new financial year, despite reporting strong results, and its mention of being “mindful” of the macroeconomic and geopolitical environment, has prompted some investors to take profits in the stock. As a result, the share price has shed 5.2%.

BT Group LON:BT.A suffered a significant decline of 8.5% at the open of London trade, however, it has recovered some of its losses into the close following its announcement to cut between 40,000 and 55,000 jobs, representing up to 42% of its current workforce of 130,000 employees. Philip Jansen, the CEO of BT, expressed that these measures would transform the company into a leaner business with a brighter future. The news coincided with BT’s release of slightly lower revenue and a decrease in profitability, as growth in Openreach was outweighed by declines in other areas of the business. BT shares ended the day down 5.0%.

On the positive side of the ledger and sitting at the top of the index today is JD Sports Fashion LON:JD. 5.9%+, as annual preliminary results for the fiscal year ending in late January demonstrated the company’s robustness as one of the leading global sports retailers. The positive momentum is expected to continue, with the company forecasting a profit before tax and exceptional items of £1.03 billion for the 2023-24 period. EBITDA before adjusted items increased to £1.696 billion from £1.606 billion, and operating profit rose to £1.06 billion from £1.01 billion.