The UK’s benchmark index gave up its early trading gains in a subdued session early in the afternoon on Friday. At midday, the FTSE 100 was down 0.03% at 7,123.17.
In a market that has struggled to find both momentum and direction investors will be focusing on the comments made by Fed Chairman Jerome Powell at the Jackson Hole symposium. The market will be scrutinizing his remarks for any outline of a tapering plan.
The central bank has previously suggested that it will ease the rate of its bond buying programme when progress has been made on its twin mandates of inflation and employment.
Overnight, Peloton shares tumbled in after-hours trade after it reported a wider-than-expected fourth-quarter loss and issued disappointing guidance. The exercise kit firm, a massive lockdown winner, reported loss per share of $1.05 versus $0.45 expected as revenue growth hit the brakes in the fourth quarter, partly due to the recall of treadmills.
But the company also slashed the cost of its bike product by 20%, implying that cheaper competition is starting to bite. The stock is now down 21% in 2021.
UK EQUITY MOVERS
In the UK, energy shares, industrial miners and travel stocks have been top performers this week. Travel stocks were on course to end their best week since March on higher demand amid easing lockdowns.
Food delivery company Just Eat Takeaway (JET) was the biggest faller in the FTSE 100 index, giving up 4.4% to trade a £66.18. The decline followed news that New York City Council approved legislation to permanently cap commissions delivery apps can charge restaurants.
Food retailer Sainsbury (SBRY) was also one of the largest decliners in the FTSE 100 index falling 2.3% to 312p at the midday mark. This was in response to fading bid speculation following a sharp rise in the share price earlier in the week
Controversial subprime lender Amigo (AMGO) gained by 3.4% to 8.17p after it posted a steep rise in first-quarter profit, although it reiterated there was ‘material uncertainty’ about its ability to continue as a going concern. The future survival of the group is contingent upon a deal being agreed with both the regulator and customers, regarding outstanding claims. At present, the group is not able to continue lending.
The mid-cap FTSE 250 l managed to surpass blue-chip index’s poor performance at the midday mark by moving into positive territory. The index nudged 31 points ahead (0.13%) to 23,983.96
Oil service firm Wood Group (WG.) was one of the stronger mid cap performers trading 3% higher at 258.8p
Primary Health Properties (PHP), the UK-based investor in modern primary healthcare facilities, has announced it has acquired the Townside Primary Care Centre and adjacent office building in Bury, Lancashire, for £40 million. Despite this news the share price response was distinctly muted. Shares were trading 0.67% higher at 167.2p at the midday mark
SMALL CAP WRAP
Shanta Gold (SHG:AIM), the East Africa-focused gold producer, edged 0.65% higher at midday to 13.09p after reporting revenues down at $57 million for the six months to 30 June 2021, compared to $73 million for the same period the year before.
Printed circuit board supplier Holders Technology (HDT:AIM) swung to a profit in the first half of its fiscal year as higher revenue and improved margins bolstered performance, sparking a 6.5%% share price jump to 81p in midday trading.
Aviation services group Air Partner (AIR) soared 7.5% to 91p at lunchtime despite forecasting lower first-half profit, though said it continued to see a strong recovery in its private jets division.
