By Josh White
Date: Monday 25 Mar 2024
LONDON (ShareCast) - (Sharecast News) - London markets finished in the red on Monday, having traded below the waterline through the session after reaching a peak at the end of last week.
The FTSE 100 closed down 0.17% at 7,917.57, while the FTSE 250 saw a decrease of 0.56% to 19,613.53.
In currency markets, sterling was last up 0.28% on the dollar, trading at $1.2636, while it saw an uptick of 0.08% against the euro, changing hands at €1.1664.
"UK stocks remained subdued on Monday in a shortened holiday week as markets processed recent advances following dovish shifts from major central banks," said TickMill market analyst Patrick Munnelly.
"Last week, UK stocks finished on a positive note, with the FTSE 100 index reaching its highest level in a year as investors reacted positively to the Bank of England and the US Federal Reserve indicating potential interest rate cuts for this year.
"Attention will now turn to the US core personal consumption expenditure price index, which is the Fed's preferred measure of inflation, scheduled for release on Friday."
Munnelly said that would provide further insight into the direction of inflation and interest rates.
"Kingfisher has seen its shares rise, making it the top percentage gainer on the FTSE 100 index, even though the company has issued a profit warning for the third time in six months, stating that its current-year profit is expected to fall short of analysts' expectations after reporting a 25% drop for 2023-2024.
"Kingfisher is cautious about the overall market outlook due to the time lag between improving housing demand and home improvement demand.
"Analysts at Jefferies have expressed concerns about the weak macroeconomic conditions affecting the company's estimates and anticipate continued pressure on its performance."
UK retail sales advance slightly in year to March
In economic news, retail sales in the UK experienced a slight uptick in the year through March, according to fresh survey data.
The Confederation of British Industry (CBI) reported an increase in its retail sales balance from -7 in February to +2, marking a shift after 10 consecutive months of decline.
Despite the modest improvement, retailers were reportedly cautious about the future, with expectations pointing towards a potential downturn in sales next month.
"The stabilisation of retail sales in March should give some hope that the sector's downturn is bottoming out," said CBI principal economist Martin Sartorius.
"The earlier timing of Easter will likely mean weaker year-on-year sales in April, but easing inflation should support retail spending going forward."
Sartorius said that to drive a sustainable recovery in the retail sector, the government needed to look to reform business rates.
"Rethinking the current system to reward investment and better align rates to the economic cycle would help encourage retailers to invest and grow after a difficult year of trading."
Ocado in the red, Kingfisher rises despite profit warning
On London's equity markets, Ocado Group declined 3.35% following reports indicating pressure over executive pay.
An influential proxy adviser urged shareholders to vote against a new bonus scheme that could potentially see Ocado's boss, Tim Steiner, paid up to £14.8m.
Direct Line Insurance Group slid 11.66% after Belgium's Ageas announced it would not be making an offer for the insurer following unsuccessful attempts at engaging with the board.
National Express owner Mobico Group faced a downturn of 0.77% after issuing a profit warning and delaying its annual results due to unexpected changes in German indices used to calculate energy costs.
Octopus Renewables Infrastructure Trust (ORIT) reported a slight decrease in net asset value (NAV), resulting in a 1.1% decline.
Despite that, ORIT increased payouts to shareholders, citing a "resilient" performance amid challenges such as falling power prices and inflation forecasts.
On the upside, Ferrexpo jumped 7.82% after its Ukrainian subsidiary reported strong operational performance without disruptions to production and sales.
Kingfisher, the owner of B&Q, rose by 2.57% despite projecting lower annual profits amid a lagging home improvement market compared to housing demand.
Experian edged up 0.41% after JPMorgan Cazenove identified it as a top pick in the European business services sector, along with Bureau Veritas, both rated 'overweight'.
"Experian remains our most-preferred long-term pick in European business services, and a top pick for the rest of 2024," it said.
"We have confidence the company will grow at least high single digit percentage organically in the medium term supported by its high-quality portfolio of new products at different stages of development.
"Experian has a strong balance sheet and opportunities for value-add acquisitions, on top of continued organic investments."
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 7,917.57 -0.17%
FTSE 250 (MCX) 19,613.53 -0.56%
techMARK (TASX) 4,501.67 -0.36%
FTSE 100 - Risers
Kingfisher (KGF) 239.60p 2.57%
St James's Place (STJ) 469.80p 2.49%
B&M European Value Retail S.A. (DI) (BME) 537.60p 1.97%
Intermediate Capital Group (ICP) 2,098.00p 1.65%
Marks & Spencer Group (MKS) 254.10p 1.44%
BP (BP.) 505.90p 1.41%
Burberry Group (BRBY) 1,199.50p 1.35%
Airtel Africa (AAF) 101.40p 1.30%
3i Group (III) 2,791.00p 1.09%
Shell (SHEL) 2,650.50p 0.70%
FTSE 100 - Fallers
Spirax-Sarco Engineering (SPX) 10,155.00p -4.48%
Rightmove (RMV) 550.20p -3.68%
Ocado Group (OCDO) 455.00p -3.35%
Croda International (CRDA) 4,953.00p -2.99%
Auto Trader Group (AUTO) 742.20p -2.65%
Persimmon (PSN) 1,302.00p -2.54%
Reckitt Benckiser Group (RKT) 4,296.00p -2.50%
Smith & Nephew (SN.) 1,018.50p -1.97%
Hikma Pharmaceuticals (HIK) 1,883.00p -1.70%
Diploma (DPLM) 3,396.00p -1.62%
FTSE 250 - Risers
Ferrexpo (FXPO) 46.60p 7.82%
PureTech Health (PRTC) 229.00p 6.02%
PZ Cussons (PZC) 88.40p 3.51%
Breedon Group (BREE) 381.00p 3.25%
TUI AG Reg Shs (DI) (TUI) 608.00p 2.96%
Hill and Smith (HILS) 1,950.00p 2.31%
Wood Group (John) (WG.) 148.20p 2.21%
Centamin (DI) (CEY) 108.60p 2.07%
QinetiQ Group (QQ.) 370.20p 1.87%
Network International Holdings (NETW) 393.20p 1.87%
FTSE 250 - Fallers
Direct Line Insurance Group (DLG) 185.35p -11.29%
Trustpilot Group (TRST) 178.70p -6.68%
Future (FUTR) 616.00p -6.03%
Bridgepoint Group (Reg S) (BPT) 264.60p -4.41%
Close Brothers Group (CBG) 380.80p -4.03%
Genus (GNS) 1,766.00p -3.55%
Rotork (ROR) 326.40p -3.09%
Essentra (ESNT) 171.40p -2.94%
Mitchells & Butlers (MAB) 222.20p -2.80%
Wetherspoon (J.D.) (JDW) 726.00p -2.68%
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