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On Thursday, London’s FTSE 100 experienced an initial decline as several companies, including oil giant BP, traded ex-dividend. Additionally, the benchmark index was weighed down by a decrease in Sage Group following its forecast cut. The FTSE 100, which is considered a blue-chip index, reversed initial losses to trade up 0.26%.Sage Group Plc’s shares plummeted by as much as 20%, making it the top percentage loser on the FTSE 100 index. The British multinational enterprise software company has revised its annual revenue growth forecast, now expecting a 9% increase compared to the previous guidance of 10%. Analysts at Stifel noted that Sage’s H1 underlying revenue of 1.15 billion pounds ($1.46 billion) fell slightly below consensus estimates of 1.17 billion pounds. The stock hit its lowest level since October 26, 2023, and is on track to have its worst day since July 1993 if the current trend continues. The stock is down 8%, leading to year-to-date losses of approximately 6%.ConvaTec, a UK-based medical equipment maker, saw its shares drop by approximately 4.5% to 254.2 pence following a reduction in outlook for its Advanced Wound Care segment. Despite this, the company remains on track to meet its FY24 guidance. However, the outlook for the Advanced Wound Care segment, which is the company’s largest revenue generator, has been lowered due to short-term uncertainty. Analysts from Jefferies commented that investors will be focused on the reduced FY24 guidance for Wound Care, which reflects short-term uncertainty related to the draft LCDs pleading for non-coverage of InnovaMatrix. On a positive note, the group’s revenue for the four months ended April grew by 6.5% on an organic basis, surpassing the market consensus of 6.4%. Prior to this drop, the stock had risen by approximately 9%.BT Group, a British telecom giant, is leading the FTSE 100 with a 9% increase in its shares. This marks the company’s best performance in over two years, making it the top gainer on the FTSE 100. The company reported a 2% increase in full-year adjusted core earnings to 8.1 billion pounds ($10.27 billion) and raised its dividend by 3.9% to 8 pence per share. The new CEO, Allison Kirkby, has outlined plans to more than double free cash flow over the next five years and potentially sell off the global business to focus on the UK market. The firm has made progress in cost reduction, with a £3 billion program completed ahead of schedule and another £3 billion targeted by the end of the decade. Prior to this surge, the stock had experienced an over 8% decline.
FTSE Bias: Bullish Above Bearish below 8300

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