British shares closed Wednesday trading higher as energy stocks benefited from higher oil prices amid tensions in the Middle East. The blue-chip FTSE 100 index rose 0.17%. Shell and BP emerged as some of the top gainers, adding 1.74% and 1.40%, respectively. On the other hand, JD Sports Fashion saw its stock drop 6.12%, making it the biggest loser among London-listed blue-chip companies at closing.
The decline follows the sports, fashion, and outdoor brands retailer's report of a year-over-year decline in attributable profit for the fiscal first half ended Aug. 3. However, JD Sports also logged growth in its fiscal first-half revenue and affirmed its profit guidance for fiscal 2025. RBC Capital Markets expressed optimism that the company would remain the preferred partner of major sportswear brands including Nike and adidas.
'JD has the opportunity to broaden its customer demographic in the US and other regions, and to improve its online offer, particularly in Europe. We also think improvements are coming through in governance, which should reassure investors; however, execution risk is probably higher than average given the company's pace of expansion,' analysts noted.
RBC Capital rated JD Sports outperform. It was another quiet day for economic news in the UK. But on Thursday, the market is expected to be abuzz with S&P Global's publication of new PMI data for the country's services sector and the broader private sector economy. The expansion of both the services sector and the private economy is widely expected to slow in September..