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* Unilever tops FTSE 100 on plans to spin off ice cream unit
* Crest Nicholson drops on lower annual home-build targets
* FTSE 100 down 0.1%, FTSE 250 off 0.2%
March 19 (Reuters) – UK equities edged lower on Tuesday
as caution set in ahead of key domestic inflation print and
major central bank decisions this week, though losses were
limited by strength in Unilever’s shares following a decision to
spin off its ice cream unit.
The blue-chip FTSE 100 was 0.1% down, as of 0917
GMT.
Investors refrained from placing big bets ahead of key
domestic inflation data and the Fed’s rate decision, both due on
Wednesday, to ascertain the global monetary policy trajectory.
Market focus will later shift to the Bank of England’s (BoE)
rate verdict on Thursday.
The BoE is expected to keep rates at current levels in the
upcoming meeting, although the focus will be on the timing of
the first rate cut.
“The UK is heading out of recession so the bank doesn’t need
to worry about the necessity of cutting interest rates in order
to stimulate growth,” said Danni Hewson, head of financial
analysis at AJ Bell.
“The bank will continue with its policy, and it does
have a balancing act to do, because now the expectation is that
we won’t get as many cuts as we thought.”
The FTSE 100 index has underperformed its European and
U.S. counterparts so far this year, owing to uncertainty over
rate cuts and lack of exposure to technology stocks, fuelled by
the artificial intelligence frenzy.
Losses on FTSE 100 were limited by a nearly 4% gain in
Unilever as the consumer goods group plans to spin off
its ice cream unit into a standalone business and cut 7,500
jobs.
The personal care sector index jumped 1%,
supported by the strong performance in Unilever’s shares.
The mid-cap FTSE 250 edged 0.2% lower, led by a 6.7%
fall in Crest Nicholson after the British homebuilder
said it could build up to 11% fewer homes in fiscal 2024.
The homebuilders sub-index dropped 1.2%.
On the flip side, shares of Close Brothers jumped
11.3% after the lender said it expects to sustain underlying
loan book growth in the second half of the year.
(Reporting by Pranav Kashyap and Shristi Achar A in Bengaluru;
Editing by Mrigank Dhaniwala and Sherry Jacob-Phillips)
