Sterling slide boosts FTSE 100, discounted rights issue knocks M&S

The exporter-heavy FTSE 100 index gained on the back of a weaker pound on Wednesday as lawmakers signalled they would not back Prime Minister Theresa May's latest Brexit compromise, while Marks & Spencer slumped after a discounted rights issue.

The main index, whose companies get more than two-thirds of their profit from abroad, advanced 0.6% by 0727 GMT while the more domestically-focussed FTSE 250 was up 0.1%. Internationally-exposed companies British American Tobacco, Unilever and Diageo were among the biggest support to the blue-chip index.

Blue-chip housebuilders including Persimmon and Barratt, which gained in the last session when May unveiled her new Brexit deal, gave up more than 2%. M&S slid 5% to a more than four-month low after it priced a rights issue at a massive discount to Tuesday's close. It also reported a third straight decline in annual profit, emphasising the pain of its latest attempt at a turnaround.

Pets at Home jumped 8.4% on the midcap index after it forecast higher earnings for 2020.