Ocado shares have fallen despite the online retailer securing its first overseas deal to set up an online grocery service for a European retailer
Ocado’s shares initially surged 7% but by later afternoon had turned negative, slipping almost 1%.
Ocado, which had originally pledged an overseas deal by the end of 2015, did not name the retailer or say how much the contract was worth.
The wider FTSE 100 was slightly lower, slipping 0.3% to 7,527.22.
Ocado’s shares have risen by 37% in the past two months and Neil Wilson, analyst at spread betting firm ETX Capital, said the drop could be linked to investors deciding to take profits.
However, he said it was still unclear what value the deal would bring to Ocado.
“We don’t even know who the company is – Ocado simply dubs it a ‘regional’ retailer (not a national one). This is progress after a lot of promises, but it’s not exactly like doing a deal with Wal-Mart – yet,” he said.
Old Mutual was among the biggest risers, gaining over 2%.
The firm was continuing to gain from Friday’s announcement that the firm’s wealth management arm had snapped up the financial adviser network Caerus Capital Group.
Wolseley also ticked higher, rising 0.4% after the plumbing supplies firm rating was upgraded to “overweight” by JP Morgan.
The US bank said it expected Wolseley’s earnings from its US business to increase.
Mining stocks were among the top losers with Antofagasta down 2.7% and Anglo American down 1.4%.
The pound was up 0.09% against the dollar at $1.29020 and 0.46% higher against the euro at 1.14477. euros.