MARKET REPORT: Morrisons set for Footsie relegation as it lags rivals 

Supermarket Morrisons will drop out of the FTSE 100 for the first time in five years after falling behind rival grocers during the pandemic.

Its shares closed 0.4 percent, or 0.6p, to 169.4p last night — contributing to a multi-day decline that will send it out of the blue-chip index and into the mid-cap market in the upcoming reshuffle.

While sales have risen and it has managed to slightly increase its market share – up to 10.3 percent in the 12 weeks to February 21 – many believe it has lagged behind tech-savvy rivals in the past year.

It means Morrisons will be taken out of the blue chip index for the second time, the last time being in 2016.

Pennon water company, which closed 0.5 percent or 4.6p at 917.6p, is also in the firing line.

Instead, vacation company Tui, down 3.6 percent, or 16.1p, at 436.7p, and engineer Weir Group, down 2.9 percent, or 57.5p, is expected to drop in 1948. .5p, are expected to rise relative to the mid-caps.

But the most notable mover is Dr. Martens, who is still enjoying the success of his blockbuster in January, which is expected to take a step into the FTSE 250.

Many speculated that the group, whose shares fell 1.6 percent or 7.7p to 482.3p, could have gone straight to the FTSE 100, but Tui is likely to get a pip.

Stock Watch – Hotel Chocolat

Traders had a strong appetite for chocolatier Hotel Chocolat, which rose 2.2 percent or 8p to 380p at session close yesterday.

The retailer managed to create 130 jobs in the six months to December, while sales rose 11 percent to £102 million and profits rose 3% to £16 million, aided by the always lucrative Christmas season.

Another 600,000 people joined the loyalty program and it launched chocolate subscriptions. It plans to reopen UK stores from April 12.

It was a mixed day for the major indices, with the FTSE 100 rising 0.4 percent or 25.22 points to 6613.75, while the FTSE 250 fell 0.2 percent or 43.55 points to 21177.91.

On a busy day of financial results, investors cheered better-than-expected annual results from global recruiter Robert Walters.

Profits fell 75 per cent to £12 million as companies around the world implemented the hiring freezes.

But the vaccine rollout and indications that business is improving in Asia, the largest market, helped the stock climb 6.2 percent or 32p to 552p.

Traders pushed Lookers up 4.5 percent or 1.8 pence to 42.2 pence after city regulators closed an investigation into the car dealership without imposing fines.

It had set aside £10.4 million to pay a fine, but the Financial Conduct Authority instead told it because of its “historical culture, systems and controls.”

The inquiry was opened in 2019 after red flags were raised internally about the sales process, leading to a management clean-up and a £19m adjustment to the results last year.

Travis Perkins, on the other hand, slipped 3.3 percent, or 48.5p, to 1429.5p, after posting a £7.7m loss and refusing to pay a dividend to shareholders.

Group-wide sales fell 12 per cent to £6.2bn last year but rose nearly a fifth at DIY retailer Wickes as the extra time they spent at home during the pandemic prompted the incarcerated Britons to spend millions on renovating their homes.

Despite this trend, Travis Perkins has restarted plans to spin off Wickes so it can focus on sales in the construction industry. It expects Wickes to be a separate publicly traded company by the summer.

Private jet group Signature Aviation said flights were still unavailable in February amid second waves and lockdowns, but far fewer than last spring.

It was virtually flat, with stock trading falling 0.1 per cent or 0.3p to 398.9p despite a £17m loss as the takeover target’s share price remained around the 411p per share level last month.

Private equity giant Blackstone, Edinburgh Airport owner Global Infrastructure Partners and Bill Gates’ investment vehicle Cascade await investor agreement for the joint offer of £3.5 billion.

Elsewhere in aviation, defense contractor Meggitt met an icy reception after it signed a “big, multimillion-pound” deal to equip Boeing’s 737 Max jets with cockpit indicators. It closed 2.5 percent, or 11p, at 429.7p.