Wednesday, March 6: The FTSE 100 closed out the day in the green(+0.17%) lifted by equities from across the spectrum, bucking the trend in Asia as indices closed lower overnight.
DS Smith(+3.72%) climbed higher in trade today as the Paper & packaging company announced the sale of its Plastics unit for €585m to Olympus Partners, an important step in its progress to become a sustainable packaging company and to accelerate its deleveraging plan. Furthermore, DS Smith said trading since November 1 continued to be “strong” and in line with management expectations. Investors were seemingly impressed by the proceeds raised from the disposal of the plastics business and a bullish market update.
Tobacconists British American Tobacco(+3.79%) and Imperial Brands(+1.23%) were higher after Scott Gottlieb, head of the US Food & Drug administration said he will resign on April 5 in order to spend more time with his family. Investors appraised this move in the administration as good for tobacco stocks, with hope that the new head of the FDA will take a more relaxed regulatory stance with respect to e-cigarettes and menthol cigarettes.
Sterling plummeted late afternoon as lack of progress in Brexit talks prompted concern that a vote on Prime Minister Theresa May’s proposed deal could be delayed.
At the close European equities were mixed, with the FTSE 100 +0.17%, the CAC 40 -0.16% and the DAX 30 -0.28%.