Business

London Market Report

  • 7 August 2014
  • From the section Business

(Close): The market continued to lose ground on Thursday as concerns over the situation in Ukraine persisted.

The benchmark FTSE 100 index was down 38.79 points, or 0.58%, at 6,597.37, at close.

The world's second largest bottler of Coca-Cola drinks, Coca-Cola HBC, was the biggest faller on the index.

Shares in the company dropped 5.31% after it said it had seen a "sudden deterioration" in trading in Russia, which is its largest market.

The Bank of England's decision to leave interest rates on hold at 0.5% did not move the market as the outcome had been widely expected. Investors will be keeping a close eye on the minutes of the meeting - due on 20 August - to see if policymakers were split over the decision.

Shares in insurers Aviva and RSA experienced mixed fortunes after the two reported results. Aviva rose 2.61% to 502.50p after it posted a 4% rise in first-half operating profit to £1.05bn and said it was set to cut annual costs by £568m.

RSA Insurance fell 3% to 430.50p, after reporting half-year pre-tax profits of £69m compared with £250m a year earlier.

The company said it was ahead of schedule in its turnaround plan. RSA's finances were hit by accounting irregularities at its Irish business last year, and by the cost of floods in the UK.

Rio Tinto shares fell 0.52% despite it posting a 21% rise in half-year profits, saying it had cut costs and lowered debts.

On the currency markets, the pound was down slightly against the dollar at $1.6841, and up slightly against the euro at 1.2611 euros.