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Britain’s FTSE 100 index fell on Wednesday as Sainsbury’s disappointed investors who had expected a rise in profits, while insurers fell after a media report suggested regulators may investigate the products’ premium funding.
The FTSE 100 index lost 0.4%, with Sainsbury’s shares falling 6.3%, the biggest percentage fall in the index.
Investors were disappointed that Britain’s second-largest supermarket group did not raise its full-year outlook despite a 7.4% rise in underlying sales in the key Christmas quarter.
Tesco shares fell 1.4%.
Other big losers included motor insurers such as Direct Line and Admiral, which fell 7.5% and 5.6% respectively.
Berenberg analysts noted that this report implies that the way insurers evaluate premium financing products could change.
The FTSE 250 Midcap index fell 0.1%.
Greggs helped limit the index’s losses with a 5.2% rise as the British baker reported a stronger-than-expected rise in like-for-like sales in the fourth quarter, driven by seasonal demand for its products.
Persimmon rose 6.3% even as the British housebuilder admitted property market conditions would remain difficult this year amid a broader economic backdrop.
Bank of England Governor Andrew Bailey said he hoped the recent decline in mortgage costs would continue, but declined to comment on the outlook for monetary policy.
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