The UK’s leading shares continued to drift lower in early afternoon trading although recovering some of their earlier losses as investors mull Deliveroo’s (ROO) IPO car crash.
The fast food delivery app saw its stock collapse close on 30% at 278.15p after listing at 390p on Wednesday for a £7.6 billion valuation, burning thousands of retail investors along the way.
That slump had no effect on London’s leading indices since Deliveroo is excluded from them, but the benchmark FTSE 100 was 0.2% down at 12.30pm, easing to 6,757.88 as investors weigh up rising bond yields, and what they say about inflation and interest rate risks.
Financials, industrials and resources sectors bore the brunt of the selling. The mid-cap FTSE 250 was roughly flat at 21,573.68.
Attention will turn to Wall Street ahead of its 2.30pm opening, where a mixed session is in prospect. The Dow Jones Industrial Average is expected to open around 47 points or 0.1% lower at 33,019 but the S&P 500 and Nasdaq Composite are both looking at marginal increases.
OPEC is set to meet with other major producers to discuss output levels after cutting its forecasts for oil demand, while more detail may emerge about the scale of bank losses from the Archegos blowup. US President Joe Biden is also due to make a speech about infrastructure, something that is likely to be closely watched for investment commitment clues.
BIG CHANGES AT GOLD MINER
Russia-focused gold miner Petropavlovsk (POG) slipped 0.6% to 23.95p after forecasting a fall in annual production and said it was undertaking a sweeping review of its business to cut costs.
Logistics group Wincanton (WIN) rallied 4% to 386p on the news full-year results are expected to be above market expectations with underlying revenue on track to rise by 15% higher in the fourth quarter.
Elsewhere, pubs and hotels business Fuller, Smith & Turner (FSTA) dropped 2.3% to 849.72p after it launched a £53.6 million equity raising as it eyes a reopening of its sites next month.
New shares in Fuller, Smith & Turner are being offered at 830p, a 4.6% discount to yesterday’s closing price.
SMALLCAP & AIM WRAP
Home improvement retailer Topps Tiles (TPT) reversed earlier losses to rise 2% to 70.24p on news of a 17.3% decline in second quarter like-for-like sales caused by the third national lockdown, although this followed a very strong first quarter in which like-for-like sales shot up by 19.9%.
Video game developer Sumo (SUMO:AIM) slumped more than 5% to 342p as it booked a fall in annual profit due to various expenses, including acquisition costs and share-based payments to executives.
However, Sumo’s adjusted gross profit rose 26% on a 41% jump in sales amid a surge in demand during lockdowns.
Exchange services group Aquis Exchange (AQX:AIM) advanced 2.6% to 585p as investors applauded a maiden annual profit as revenue surged thanks to very strong growth from higher trading levels in the equities trading division.
Direct-to-consumer ready meals provider Parsley Box (MEAL:AIM) declined 7% to 187.5p in debut AIM dealings, having priced its IPO at 200p for a starting market tag of around £84 million.
And alternative broadband services provider Bigblu Broadband (BBB:AIM) fell 4% to 103p after it swung to a loss as higher costs offset a modest climb in revenue.
