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 Reports suggested around 10 per cent of funds have been withdrawn by investors since he announced his departure earlier this month.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.

PROMOTED VIDEO
Arts and Entertainment
From Mean Girls to Mamet: Lindsay Lohan
theatre
Sport
Nathaniel Clyne (No 2) drives home his side's second goal past Arsenal’s David Ospina at the Emirates
footballArsenal 1 Southampton 2: Arsène Wenger pays the price for picking reserve side in Capital One Cup
News
Mike Tyson has led an appalling and sad life, but are we not a country that gives second chances?
peopleFormer boxer 'watched over' crash victim until ambulance arrived
Arts and Entertainment
Geena Davis, founder and chair of the Geena Davis Institute on Gender in Media
tv
News
i100
Travel
travelGallery And yes, it is indoors
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
The Tiger Who Came To Tea
booksJudith Kerr on what inspired her latest animal intruder - 'The Crocodile Under the Bed'
Arts and Entertainment
British actor Idris Elba is also a DJ and rapper who played Ibiza last summer
film
News
Alan Bennett criticised the lack of fairness in British society encapsulated by the private school system
peopleBut he does like Stewart Lee
Sport
John Terry, Frank Lampard
footballChelsea captain sends signed shirt to fan whose mum had died
News
people
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

IT Project manager - Web E-commerce

£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...

Trainee / Experienced Recruitment Consultants

£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Syria air strikes: ‘Peace President’ Obama had to take stronger action against Isis after beheadings

Robert Fisk on Syria air strikes

‘Peace President’ Obama had to take stronger action against Isis after beheadings
Will Lindsay Lohan's West End debut be a turnaround moment for her career?

Lindsay Lohan's West End debut

Will this be a turnaround moment for her career?
'The Crocodile Under the Bed': Judith Kerr's follow-up to 'The Tiger Who Came to Tea'

The follow-up to 'The Tiger Who Came to Tea'

Judith Kerr on what inspired her latest animal intruder - 'The Crocodile Under the Bed' - which has taken 46 years to get into print
BBC Television Centre: A nostalgic wander through the sets, studios and ghosts of programmes past

BBC Television Centre

A nostalgic wander through the sets, studios and ghosts of programmes past
Lonesome George: Custody battle in Galapagos over tortoise remains

My George!

Custody battle in Galapagos over tortoise remains
10 best rucksacks for backpackers

Pack up your troubles: 10 best rucksacks for backpackers

Off on an intrepid trip? Experts from student trip specialists Real Gap and Quest Overseas recommend luggage for travellers on the move
Secret politics of the weekly shop

The politics of the weekly shop

New app reveals political leanings of food companies
Beam me up, Scottie!

Beam me up, Scottie!

Celebrity Trekkies from Alex Salmond to Barack Obama
Beware Wet Paint: The ICA's latest ambitious exhibition

Beware Wet Paint

The ICA's latest ambitious exhibition
Pink Floyd have produced some of rock's greatest ever album covers

Pink Floyd have produced some of rock's greatest ever album covers

Can 'The Endless River' carry on the tradition?
Sanctuary for the suicidal

Sanctuary for the suicidal

One mother's story of how London charity Maytree helped her son with his depression
A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world