Market Report: Invesco sell-off is a killer for Rentokil

News that Invesco Perpetual is setting free a chunk of shares in Rentokil Initial saw it tumble to the bottom of the mid-tier table yesterday. The fund manager Invesco said yesterday that it will reduce its holding in the pest control specialist from 25 per cent to around 14 per cent and the shares fell the most in two-and-a-half years.

Invesco is selling the stake after its star fund manager Neil Woodford decided to quit after 25 years.

The City has been expecting shares in the companies he has backed to fall. Reports suggested around 10 per cent of funds have been withdrawn by investors since he announced his departure earlier this month.

Rentokil dropped 3.2 per cent at the time, while other companies he invested in – including the defence giant BAE Systems and the power company Drax – all declined on the news.

Invesco hired Deutsche Bank to sell their stake in Rentokil this week and the shares tumbled 7.7p to 104.5p. But even after the sale, Invesco will remain its biggest shareholder.

For the wider market the mood was generally cautious as investors switched to profit-taking after the recent surge in the benchmark index. The FTSE 100 edged back 46.27 points to 6,731.43 but some analysts expected the dip to be temporary.

Mike van Dulken, the head of research at Accendo Markets, said: "We still see a correction as healthy and a pull back to 6,660 wouldn't be disastrous before a renewed attempt at May highs of 6,875 and possibly even all-time highs of 6,950."

The worst performer among the blue chips was the chemicals-maker Croda International, hit by currency weakness in emerging markets. The supplier of chemicals for soaps and detergents reported weaker-than-expected sales growth for the third quarter. Croda followed clients such as Unilever which recently revealed an emerging market slowdown. Croda said significant devaluation of India's rupee and Japan's yen hit its performance and it missed expectations by 5 per cent. Analysts at JPMorgan slashed their price target to 2,350p and the shares tumbled 199p to 2,436p.

Oil major Royal Dutch Shell reported weaker-than- expected third-quarter profits and slipped 117.5p to 2,159.5p.

Keeping Shell and Croda company were miners, as investors became risk-adverse. Chilean-based copper miner Antofagasta's production update was broadly in line with expectations but it declined 42.5p to 855p. The commodity and mining giant Glencore Xstrata's third-quarter production report revealed good volumes in its copper and coal business but it still declined 5.05p to 340p.

A new shareholder for Marks & Spencer was revealed yesterday. Bill Adderley, the co-founder of the homeware chain Dunelm, has been building a stake for the past 18 months and ticked over the 3 per cent threshold this week. M&S added 10.3p to 503.5p.

Brian McArthur-Muscroft, the finance chief at data centre business Telecity, has left ahead of its trading update next week and it was 28p weaker at 762.5p.

Premier Foods said sales of its eight best-selling lines, including Hovis and Mr Kipling, increased 2 per cent to £125.9m in the past quarter. But it wasn't so tasty at its other brands and non-branded items which dragged its underlying sales down 3.2 per cent, and the food producer was 29.5p worse off at 150.5p.

Over on AIM, DiamondCorp updated on its Lace mine in South Africa and said the first sale of diamonds from tailings will be in November. It was 0.125p brighter at 6.75p. Mariana Resources started drilling at its Condor de Oro copper and gold project in northern Peru and rose 0.575p to 3.57p.

Costis Papadimitrakopoulos, the founder and chief executive of mobile software group Globo, bought 150,000 shares at 65p each and it dialled up a 9.75p advance to 68p.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
tvThe C-Word, TV review
Arts and Entertainment
The Ridiculous Six has been produced by Adam Sandler, who also stars in it
filmNew controversy after nine Native American actors walked off set
Danny Jones was in the Wales squad for the 2013 World Cup
rugby leagueKeighley Cougars half-back was taken off after just four minutes
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before
'Queer saint' Peter Watson left his mark on British culture by bankrolling artworld giants

'Queer saint' who bankrolled artworld giants

British culture owes a huge debt to Peter Watson, says Michael Prodger
Pushkin Prizes: Unusual exchange programme aims to bring countries together through culture

Pushkin Prizes brings countries together

Ten Scottish schoolchildren and their Russian peers attended a creative writing workshop in the Highlands this week
14 best kids' hoodies

14 best kids' hoodies

Don't get caught out by that wind on the beach. Zip them up in a lightweight top to see them through summer to autumn
Robert Fisk in Abu Dhabi: The acceptable face of the Emirates

The acceptable face of the Emirates

Has Abu Dhabi found a way to blend petrodollars with principles, asks Robert Fisk