The London stock market closed out the trading week on a negative note, as the prominent blue-chip FTSE 100 index experienced a downturn, finishing the week at a decrease of 0.43%. This decline marked the end of a successful five-day rally that had previously buoyed investor sentiment across the board. The decline was notably influenced by the performance of GlaxoSmithKline plc (GSK), which saw its shares dip by 0.19% by the close of trading on Friday.
Despite a legal victory in Florida, where a state court opted to exclude expert testimony linking the pharmaceutical company's Zantac medication to prostate cancer, GSK remains beset by ongoing claims in various other jurisdictions, casting a shadow over its stock performance. Additionally, AstraZeneca plc endured a significant decline as well, falling 0.91% at the close after the company achieved a critical milestone: securing approval from the US Food and Drug Administration for Imfinzi (durvalumab).
This treatment is meant for use in combination with chemotherapy as a preoperative strategy for adults suffering from resectable non-small cell lung cancer. Despite this regulatory success, investors reacted negatively, highlighting the volatile nature of biotech stocks amid broader market trends. On the economic front, recent data from the Office for National Statistics (ONS) revealed a positive turn for retail sales volumes in the UK for July.
Retail sales experienced a recovery, marking a 0.5% increase compared to a previous decline of 0.9% in June. This rebound in retail activity was largely attributed to summer discounts and the influence of various sporting events during the reported month, which resurrected sales figures for both department stores and sports equipment retailers alike. However, it wasn't all good news; the ONS report also cautioned that these gains were tempered by poor sales performances in the clothing and furniture sectors.
Additionally, there was a notable drop in fuel sales, even as prices at the pump began to ease. Liz McKeown, the ONS Director of Economic Statistics, summarized the mixed bag of results, stating: "These increases were offset by a poor month for clothing and furniture shops, and falling fuel sales, despite prices at the pump falling.".