The FTSE 100 index in the UK declined on Tuesday as mining stocks dropped, and Ashtead’s shares fell after the company cautioned about lower-than-anticipated annual profits and announced plans to shift its primary listing from London to New York. The blue-chip FTSE 100 decreased by 0.5%, while the midcap FTSE 250 is also in the red. Shares of mining companies Glencore, Antofagasta, and Anglo American saw declines between 1.8% and 2.3% as copper prices fell due to a strong U.S. dollar, compounded by disappointing trade figures from China, the leading consumer. The prices of metals had previously surged following China’s indication of a “moderately loose” monetary policy for the first time since 2010. Precious metal miners experienced the most significant losses in the sector, dropping by 2.2%. Attention will be focused on the gross domestic product estimate for October, set to be released on Friday, as it may impact the Bank of England’s interest rate plans. Traders anticipate that the BoE will maintain current rates during its upcoming policy meeting next week. Recruitment platform Indeed reported that job vacancies in the United Kingdom have decreased more rapidly than in other comparable nations over the past year, indicating a slowdown in economic activity in the latter half of 2024. Single Stock Stories:
Ashtead, a UK equipment rental firm, experienced a 7.5% decline in its share price, dropping to 5,798p, making it the biggest loser on the FTSE 100 index after issuing a profit warning. The company has suggested relocating its primary listing to the U.S. and warned of a potential decrease in full-year profits due to a sluggish commercial construction sector in its largest market, the U.S. For the first half of the year, Ashtead reported a pre-tax profit of $1.26 billion, which is slightly below the analysts’ consensus estimate of $1.29 billion. Furthermore, the company has introduced a $1.5 billion share buyback program and has seen its stock advance by around 6% so far this year.
NCC Group, a UK-based cybersecurity firm, saw its shares drop by as much as 21% to 128p, making it the biggest loser on the FTSE 250 index. The company reported a full-year operating loss of £21.5 million ($27.4 million), compared to an operating profit of £1.9 million in the previous year. Revenue for FY24 fell by 3.2% on an actual rate basis, totaling £324.4 million. Despite this downturn, NCC Group has seen its stock rise by approximately 2% year-to-date.
Shares of contract research organisation hVIVO rose by 4.7% to 22.25p. The company has signed a £11.5 million ($14.66 million) contract for Respiratory Syncytial Virus (RSV) with an existing global pharmaceutical client. A Phase 2A trial is set to begin in the second half of 2025, with revenue recognition expected throughout 2025 and 2026. The company reaffirms its revenue guidance for FY 2024 at £62 million and anticipates annual EBITDA margins at the higher end of market expectations. As of the last closing, the stock is down approximately 6.27% year-to-date.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8225
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