FTSE 100 at the close: Vodafone, Sainsburys, BAE Systems

By Michael Morton
26th June 2023

Related topics: Sainsbury [LON:SBRY], Taylor Wimpey [LON:TW.], BAE Systems [LON:BA.], Vodafone [LON:VOD], Tickmill

By Patrick Munnelly, Market Strategist, Tickmill

British equities began the week with a distinct lack of buoyancy as defence firms faced losses following an unsuccessful mutiny attempt by mercenaries in Russia. The FTSE 100, the UK’s main stock index, printed a three-month low, down 11 points to close the day on 7450.27.

FTSE 100 biggest movers

The aerospace and defence sector experienced a decline of 2.1% due to the incident involving fighters from the Wagner group in Russia over the weekend. BAE Systems LON:BA., the largest defence company in Britain, saw its stock slump 2.1%, placing it second to the bottom of the FTSE 100.

The biggest loser on the session is Vodafone LON:VOD whose shares approached a nearly 26-year low, declining by as much as 3.6%. According to The Times, British Members of Parliament (MPs) have expressed concerns regarding the proposed merger between Vodafone and Three. The merger, which was announced by Vodafone and CK Hutchison on June 14, involves a long-awaited £15 billion consolidation of their British mobile operations. The report indicates that the merger is undergoing cross-party scrutiny in Parliament due to its connections with China. MPs from both the Conservative and Labour parties have raised questions to government departments regarding the potential impact on state contracts with Vodafone following the proposed merger with Three, which is owned by CK Hutchison. Both companies have stated that the creation of a new market leader would promote competition and encourage investment. Vodafone’s shares have experienced a decline of approximately 14% year-to-date.

On the positive side home builder Taylor Wimpey LON:TW. saw gains of over 1.9% with Sainsburys LON:SBRY topping the leaderboard with a gain of 2.6% after announcing a £15 million investment to cut prices of its own brand items like rice, pasta and cornflakes, the retailer also committed to matching chicken breast prices to competitor Aldi for the first time.