MARKET REPORT: Burberry leaves FTSE 100 after 14 years

Burberry shares ended the week down more than 5 percent as the company prepares to leave the FTSE 100.

The luxury fashion company has been hit by customers spending less on its famous trench coats and by declining sales across the sector, caused by weaker demand in China.

Shares – which fell 1.2 percent or 8p to 677.8p – have more than halved in value this year.

Last month, the stock hit a 14-year low after the group issued a profit warning and scrapped its dividend.

Burberry, valued at £2.5bn, is expected to be downgraded to the FTSE 250 when indicative changes to the latest reshuffle are announced next week.

It is likely to be replaced by Lloyd’s of London insurer Hiscox, which is valued at almost £4 billion. Shares fell 0.3 percent, or 3p, to 1,177p.

London’s major markets ended the month on a high, although the FTSE 100 fell slightly by 0.04 percent, or 3.01 points, to 8376.63. The FTSE 250 rose by 0.3 percent, or 55.46 points, to 21086.54.

But the blue-chip index is still below its record close of 8,445.80 in mid-May.

House prices in the UK have fallen for the first time since April, according to Nationwide.

The latest data shows average prices fell 0.2 percent this month.

But they rose 2.4 percent in the year to August, compared with 2.1 percent in July.

Home builders took action with Persimmon Stocks 0.5 percent, or 8p, up to 1,644p, Taylor Wimpey rose 0.8 percent, or 1.3p, to 161.05p and Bellway gained 0.1 percent, or 2p, to 3,034p.

Investors will hope to get more clarity on the state of the sector next week with updates from Barratt Developments (up 1 percent, or 5p, to 507.2p), Vistry (up 1 percent, or 14p, to 1,359p) and Berkeley (up 0.5 percent, or 24p, to 4,894p).

Property shares also rose, with Hammerson, owner of Birmingham’s Bullring shopping centre, up 1.2 percent, or 0.34p, to 28.38p, British Land rose 2.8 percent, or 11p, to 411.2p and Land Securities rose 2 percent, or 12.5p, to 629.5p.

Just months after the two announced a strategic partnership, Filtronic received another order from Elon Musk’s Space X.

Following a £7.1m deal in July, the AIM-listed company has secured a new £6.4m contract to help the aerospace company’s Starlink division continue to deliver superfast internet to users around the world.

The order is expected to close next year, with Filtronic trading ahead of market expectations for the year to the end of May 2025. Shares rose 4.6 percent, or 3.5p, to 79.5p.

Longboat Energy is changing its name to Seascape Energy Asia as it focuses on its gas exploration activities off the coast of Sarawak in Malaysia. Shares fell 0.3 percent, or 0.05p, to 17.75p.

Media group STV Group has poached the director behind the launch of ITV’s streaming service.

Rufus Radcliffe, who founded ITV X in 2022, will become CEO in early November. He replaces Simon Pitts, who steps down at the end of October to lead the media giant Global. Shares rose 3.5 percent, or 9p, to 267p.