Stock prices in London were mostly in the red at midday on Monday, as Pod Point shares dived as it lamented an ongoing weakness in the private new car segment of the electric vehicle market.
‘Markets are beating to the drum of Donald Trump on the day of his return to the White House,’ commented AJ Bell’s Russ Mould. ‘Markets are eagerly awaiting Trump’s first batch of executive orders as this will provide clarity on the lay of the land...Markets want to know which countries and industry sectors will be targeted and the relevant tariff rates to price in any risks or opportunities to equities, currencies and bonds around the world.’
US stocks are closed on Monday for Martin Luther King, Jr Day, having closed higher on Friday.
Once they reopen, Mould said, ‘Trump is likely to have a much greater influence on markets than Joe Biden due to his punchier policies and unpredictable nature. Investors should strap themselves in, as this situation implies much greater swings up and down for share prices, currencies and other asset classes.’
The FTSE 100 index was up 9.87 points, 0.1%, at 8,515.09. The FTSE 250 was down 122.09 points, 0.6%, at 20,475.33, and the AIM All-Share was up 0.50 points, 0.1%, at 719.57.
The Cboe UK 100 was up 0.1% at 853.42, the Cboe UK 250 was down 0.6% at 17,874.50, and the Cboe Small Companies was down 0.1% at 15,702.98.
Entain was the FTSE 100’s worst performer, down 1.8%.
Accountancy firm KPMG is being investigated by the Financial Reporting Council over its auditing of the Ladbrokes and Coral owner, PA reported on Monday morning.
KPMG has been Entain’s auditor since 2018, and the FRC probe concerns its work on the betting company’s 2022 accounts.
PA noted that Entain last year appointed a new chief executive, Gavin Isaacs, following the sudden departure of former CEO Jette Nygaard-Andersen at the end of 2023 in the wake of a £615 million settlement to resolve a probe into alleged bribery at a former Turkish subsidiary.
Workspace Group was among the FTSE 250 losers, down 3.2% after Jefferies maintained a ’buy’ rating but cut its price target for the flexible workspace provider to 596 pence from 640p.
Among smaller caps, Pod Point plummeted 38%.
The electric vehicle charging network operator is forecasting an adjusted loss before interest, tax, depreciation and amortisation of approximately £14 million for 2024, in line with guidance.
However it expects about £53 million in turnover, down from guidance of roughly £60 million, due to ‘ongoing weakness in the private new car segment of the EV market’. Net cash at December 31 totalled £5.3 million, below guidance of around £15 million.
‘The shares are trading at just a fraction of their listing price and the cash buffer the company has long enjoyed is being eroded,’ Mould commented. ‘This is partly a result of the shift from home charging, where Pod Point gets paid upfront, to charging points in other locations.
‘The problem for the company is that the point at which it becomes cash flow positive is moving further into the distance and, like a motorist whose fuel or charge is becoming depleted, this is more uncomfortable when the company’s money in the bank is draining away.’
In European equities on Monday, the CAC 40 in Paris was up 2.62 points, while the DAX 40 in Frankfurt was up 2.10 points.
The pound was quoted at $1.2198 at midday on Monday in London, up compared to $1.2189 at the equities close on Friday. The euro stood higher at $1.0321, against $1.0292. Against the yen, the dollar was trading flat at JP¥156.37 compared to JP¥156.34.
Brent oil was quoted higher at $80.39 a barrel at midday in London on Monday from $80.05 late Friday.
Gold was quoted lower at $2,706.91 an ounce against $2,715.22.
‘Gold prices showed resilience on Monday, as the US dollar softened,’ said Tickmill’s Joseph Dahrieh. ‘Investors are closely monitoring Donald Trump’s presidential inauguration today, seeking clarity on potential policies that could impact inflation trends and influence the Federal Reserve’s monetary policy decisions.
‘The precious metal’s market dynamics could experience heightened volatility in the initial phase of the new administration, as policy implementations might bring unexpected developments to financial markets.’
Still to come on Monday’s economic calendar, there is producer price inflation from South Korea and the New Zealand composite purchasing managers’ index.
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