FTSE 100 ticks higher, Flutter completes US move, Frasers ups stake in Hugo Boss, Nationwide deal for Virgin Money could face competition probe and JD Sports sales slip

“The FTSE 100 ticked higher on Friday morning, looking to build on Thursday’s momentum which saw it snap a six-day losing streak,” says AJ Bell Head of Investment Analysis Laith Khalaf.

“After hitting record highs, the UK’s flagship index hit a bit of a wall and investors will be hoping it can now push on to set new all-time highs. Today’s move higher was being powered by gains in the energy sector.

“Further strength for the FTSE 100 would help shrug off the idea it is yesterday’s market – with gambling group Flutter completing the switch of its primary listing to the US today.

“Mike Ashley’s vehicle Frasers continues to demonstrate the opportunism for which its founder is known, as it seizes on a big share price drop at German fashion brand Hugo Boss to increase its holding.

“Nationwide will be watching nervously as increasingly interventionist UK competition authorities weigh whether to escalate an initial probe into its deal for Virgin Money to a full-blown investigation. A decision is due in late July after submissions from the industry.”

JD Sports Fashion

“One of UK retail’s biggest success stories, JD Sports, has found life a bit trickier in recent years and not just thanks to the pandemic.

“While its youthful demographic, with some of its customers still living at home, may not have been as immediately impacted by the cost-of-living crisis, ultimately there have been limits on their capacity and appetite to drop hundreds of pounds on the latest set of must-have trainers.

“Fashion is typically cyclical and the athleisure trend, which saw people wear the same clothing for trips to the gym, socialising and relaxing at home, may be starting to sputter having sustained momentum at JD for some time.

“A dip in full-year profit despite higher revenue reflects the cost challenges facing the business and a drop in like-for-like sales in the new financial year, which started at the end of January, is sticking in the craw of investors.

“The company is also reporting high levels of promotional activity – having to slash prices to get products through the tills, though there will at least be some relief that the company is sticking with guidance after its January profit warning.

“Life looks tougher in the UK than its other major market, the US, underlining the merits of a strategy of pivoting across the Atlantic. The company’s $1.1 billion takeover of American sportswear rival Hibbett is expected to complete in the second half of the year and boost its US presence.”

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