12th January 2012
The prospect of poor retail data from some of the biggest businesses in the UK has resulted in stagnation for the FTSE 100 in afternoon trading today (January 12th).
Following the publication of poor data by Tesco of a 14 per cent profit reduction, the blue chip index rose by just 0.02 percent to 5,671.88, Reuters reports, with the company reporting a 32-month low in terms of profitability.
As a result, Shore Capital cut its rating on Tesco to 'hold' from 'buy'.
"Even if you think the retail outlook is bad, there are almost always some winners and losers in the retail space," Alex Wright, manager of Fidelity Investments' UK Smaller Companies Fund, told the news provider.
Earlier this week, positive commodity data served to bolster the FTSE 100, with a 46.63 point rise recorded on Tuesday.
It followed strengthening copper prices in global commodity trading, as well as favourable aluminium data from mining firm Alcoa.
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