UK stocks experience their worst one-day fall in more than 12 months on Monday as global markets swooned due to sustained weakness in US technology stocks with the Nasdaq 100 collapsing by 4% as sellers began to exhibit signs of panic.
Asian trading saw a volatile session with Japan’s Nikkei 225 and China’s Shanghai Composite up slightly, but the EuroStoxx 50 index of leading European companies shed 4% on heavy selling.
Investors are also bracing themselves ahead of an update from the US central bank this week where the Fed is expected to signal the timing of its first rate rise since 2018.
At the close the FTSE 100 index of blue-chip shares was down 197 points or 2.6% to 7,297 points, its biggest percentage fall in more than a year. The FTSE 250 mid-cap index fared even worse, falling more than 800 points or 3.6% to 21,452 points.
COMPANY NEWS
Consumer giant Unilever (ULVR) was a rare gainer, adding 7.8% to £39.61 on reports that US activist investor Nelson Peltz had build a stake in the company through his fund Trian Partners.
On the other hand precious metals miner Polymetal International (POLY) was one of the biggest losers in the FTSE 100, shedding 7.2% to £11.33 despite after it made an initial mineral resource estimate for the Novopet project in Bashkortostan, Russia.
The estimate amounted to 9.2 million ounces of mineralised material with an average GE grade of 8.0 g/t. The composition was 37% copper, 35% gold, 23% zinc and 6% silver.
INCREASED EXPECTATIONS
Demonstrating the negative attitude towards technology stocks, computer services provider Computacenter (CCC) reversed early gains of 2% to trade down 2% at £26.20 even though it increased its earnings guidance after reporting better-than-expected fourth-quarter trading despite ongoing supply-chain disruptions.
The company said its product order backlog is at an all-time high and considerably larger than a year ago. Adjusted pre-tax profit for the year is now expected to slightly in excess of £250 million while revenues grew by 23% including acquisitions.
The firm experienced the highest growth in Services revenues for the last 20 years along with continued strength in Technology Sourcing product sales.
Thermal energy and niche pumping specialist Spirax-Sarco Engineering (SPX) said it had agreed to acquire Cotopaxi from Business Intelligence of Oriental Nations Corporation for £13.3 million.
Cotopaxi ias a global energy consulting and optimisation specialist and comprises a team of 38 energy engineers and software specialists.
It provides customers with consulting, digital connectivity and monitoring of energy intensive processes, including steam. Spirax shares dropped 2.7% to £126.90.
PROFIT WARNING
Shares in bank note printer De La Rue (DLAR) sank 23% to 115p after the company lowered its profit expectations following cost and supply chain challenges as well as increased staff absences due to increased virus infections.
The company now expects adjusted full-year operating profit to be in the range of £36 million-to-£40 million which is around 17% shy of market expectations of £45 million-to-£47 million.
Management said external factors beyond its control had pushed its turnaround plan back by around a year.
HgCapital Trust (HGT) said it would invest roughly £31.8 million in Waystone, an institutional governance, risk and compliance services business in the asset management industry.
The company will announce its full year results to 31st December on 7 March 2022. The shares dropped 3.4% to 381p.
Student accommodation developer Unite (UTG) said it had acquired a consented 270-bed development site in Nottingham's city centre.
Total development costs for the scheme, which would open for the 2024/25 academic year, were estimated to be £34 million, the company said.
Unite said the direct-let development was expected to deliver a yield on cost of 7%, reflecting the fact that planning approval already was secured. The shares dipped 1.8% to £10.39.
Shares in medical devices developer Belluscura (BELL:AIM) dropped 12% to 122p despite the company saying demand and sales for its portable oxygen concentrator had exceed expectations.
Since the launch of X-PLO2R in September 2021, the group had sold 377 units, 25% above current consensus forecasts and 150% above initial forecasts for 2021.
FOR A LIST OF FTSE 100 RISERS & FALLERS SEE HERE.
