Business | Business News The FTSE 100 faded after an early rally to close in the red on Monday, dragged down by plummeting shares in pharmaceutical giant GSK . London’s premier stock exchange finished the day 12.6 points lower, or 0.
15%, ending at 8,263. The index was boosted by gains for retailers and property giants, with JD Sports and Ocado among the top risers. But a plunge in GSK shares pulled it down, after a US court ruled on Friday that more than 70,000 lawsuits against the company could go ahead over its heartburn drug Zantac.
Shares in the drug making giant fell 9.54%. Meanwhile, it was good news for industrials as the UK’s manufacturing sector sprung back into growth in May, with levels of production surging and business optimism hitting a more than two-year high.
Kathleen Brooks, research director at XTB, said: “The UK’s FTSE 100 is the weakest performer in Europe on Monday. “The index has been dragged down by GSK, the healthcare giant, which is down more than 8% after one of its drugs for heartburn was reported to cause cancer. “The healthcare sector is the weakest in the UK on Monday, although it is worth noting that all other sectors are higher, as an initial public offering (IPO) buzz rips through the UK market.
” In Europe, stock markets fared a little better, with Germany’s top share index, the Dax, closing up 0.6%, while France’s Cac 40 rose by 0.06%.
The US’s S&P 500 was down 0.1% by the time European markets closed, while Dow Jones was .