LONDON, Sept 29 ― London's blue-chip FTSE 100 index ended lower yesterday, dragged down by heavyweight homebuilders and financial stocks, while the technology company Smiths Group topped the index after delivering strong annual earnings.
The FTSE 100 index eased 0.5 per cent, with the housebuilder index and financials leading declines.
The domestic-focused mid-cap index dropped 1.7 per cent, recording its worst session in over two months, with travel and leisure stocks among the top losers.
The FTSE 100 has gained 9.8 per cent from its lowest point this year, buoyed by strong second-quarter earnings and dovish central bank policies. Its pace of growth has, however, slowed recently due to inflation concerns.
Kunal Sawhney, chief executive officer at Kalkine, said rising inflation pressures as energy prices continue to rise amid supply bottlenecks had unnerved UK investors fearing that higher interest rates could be brought forward.
Higher costs and supply chain disruptions have recently pushed central banks to adopt a more hawkish tone, with Bank of England Governor Andrew Bailey hinting that the case for higher interest rates is building.
The wider homebuilder index fell 3.0 per cent, hitting its lowest level in more than two months. Taylor Wimpey, Bellway and Countryside Properties were down between 2.7 per cent and 4.0 per cent.
“When you've got hawkish language, interest rate-sensitive sectors such as house builders and other utilities are the ones hit,” said Keith Temperton, sales trader at Forte Securities.
Further losses were limited by gains in energy stocks, which tracked stronger oil prices.
British software automation company Blue Prism Group dropped 4.0 per cent after agreeing to a £1.1 billion (RM6.23 billion) takeover offer from American private equity firm Vista Equity Partners.
British online greetings card retailer Moonpig fell 5.1 per cent, despite raising its annual revenue forecast.
However, Smiths Group jumped 4.1 per cent after signing a binding agreement to sell its medical devices unit, Smiths Medical, and declaring a dividend of 26 pence after robust annual earnings. ― Reuters
Source: Malay Mail
A word from our sponsor:
Need Help With Your Personal Finance / Money Issue or need a coach to help you structure or just want to learn the financial skill to self manage your financial matters and retirement. iLearnFromCloud.com
Need to solve a problem quickly, now you can solve it by learning the art of problem solving Art Of Problem Solving
Feeling hungry. Latest food news from Best Restaurant To Eat Malaysian Food and Travel Blog
Memory loss. Need to organize better. Solve problem fast with Free Mind Mapping Software Mind Mapping 101
Need A Customized System Development for your business or Going Paperless XPERT TECHNOLOGIES - Empowering The Paperless Economy
No comments:
Post a Comment