FTSE 100 Stalls Amid Stake Sale and Profit Warning

The FTSE 100 index remained flat as losses in Sainsbury's and BP weighed it down. Qatar Investment Authority's stake reduction in Sainsbury's led to a 4.2% drop in shares, while BP slipped 0.4% due to weak refining margins. Economic data showed slight growth in August, boosting national fiscal optimism.

The blue-chip FTSE 100 index remained unchanged on Friday, hindered by setbacks in Sainsbury's after its premier shareholder reduced its stake, along with a slip in BP shares following a warning on third-quarter profit.

Sainsbury's shares fell 4.2%, marking the steepest decline on the FTSE 100, as the Qatar Investment Authority prepared to sell approximately £306 million ($399 million) in shares. BP saw a marginal decline of 0.4% after projecting that weak refining margins could reduce its third-quarter profit by up to $600 million.

The FTSE 100 index remained stable at 0752 GMT and was poised for a second week of losses, despite data indicating the UK economy grew by 0.2% in August, aligning with economist forecasts. This economic growth is seen as a potential solace to Finance Minister Rachel Reeves ahead of the new Labour government's budget plan.

(With inputs from agencies.)