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FTSE 100 heads into Christmas break higher

Published 24/12/2024, 05:00
FTSE 100 heads into Christmas break higher
UK100
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  • FTSE 100 up 34 points
  • EV sales rules reviewed
  • Vistry warns on profit

12.30pm: FTSE 100 enjoys festive uplift

London’s blue chips racked up a gain on Christmas Eve’s shortened trading session, with the FTSE 100 climbing 34 to 8,136

The majority of the FTSE 100’s constituents climbed over the session, with Persimmon PLC (LSE:LON:PSN), Barratt Redrow (LON:RDW) PLC (LSE:BTRW) and Taylor Wimpey PLC (LSE:LON:TW.) among just seven to drop.

The housebuilding trio’s decline followed a third profit warning of the year from FTSE 250-listed rival Vistry Group (LON:VTYV) PLC (LSE:VTY) earlier on, which sent its shares down 16.3%.

Beazley PLC (LON:BEZG) (LSE:BEZ), Ashtead Group PLC (LSE:LON:AHT), Entain (LON:ENT) PLC and BT Group PLC (LSE:LON:BT.A) were the others just in the red.

Airtel Africa PLC (LAGOS:AIRTELAFRI) (LSE:AAF) remained top of the risers in the meantime, having gained 3.2%, with Vodafone Group PLC (LSE:LON:VOD) and Pershing Square (LON:PSHP) Holdings (LSE:PSH) PLC following.

On that note, the Proactive team would like to extend our best wishes to you all this Christmas!

We will be back on Friday, 27 to resume usual service.

12.14pm: Ocado warehouse issue hits Christmas orders

Hundreds of Ocado customers have been left without vital Christmas shopping due to an issue at one of the online grocer's fulfilment centres.

Some were said to be missing chilled and frozen products, while others claimed to be without dozens of items, a report by the Mail Online said.

Issues were said to be at the Marks and Spencer Group PLC (LSE:LON:MKS) and Ocado Group PLC (LSE:LON:OCDO)-owned joint venture’s Erith Customer Fulfilment Centre... Read more

11.50am: US stocks seen higher on Christmas Eve

Festive cheer looked to sweep across Wall Street ahead of Tuesday’s shortened Christmas Eve trading session.

Futures had the Nasdaq up 0.2% ahead of the opening bell, while the S&P 500 was seen 0.1% higher and the Dow Jones set to move just above the mark.

Each had racked up gains on Monday, reviving hopes for some form of Santa rally after stocks tumbled on hawkish Federal Reserve commentary last week.

“It’s never too late to believe in Santa,” Swissquote Bank analyst Ipek Ozkardeskaya commented.

“Investors on Monday were shrugging off the bad news of past week – especially the one that suggested that the Federal Reserve would cut its rates only two times in 2025 due to a too resilient US economy.”

11.27am: Atlas Metals sinks as Moroccan mine deal falls through

Among small caps, Atlas Metals Group PLC has slumped after it said a deal to buy Morocco-based Managem SA’s Compagnie Miniere de Oumejrane had collapsed.

Shares in the micro cap dropped 61% to 11.11p on news the agreement had been terminated on Atlas failing to raise required funds within an agreed timeframe.

Atlas had previously sought to raise £15 million to fund the takeover of Compagnie Minière de Oumejrane, which has mining operations throughout Africa.

However, Atlas noted it had been unable to “in light of feedback from prospective institutional investors”.

“The company is now examining possible alternative options to which may allow it to continue to engage in the closing of the acquisition,” Atlas added.

11.03am: FTSE 100 holds gains into late morning

London’s blue chips had racked up a 40-point gain to reach 8,143 come mid-morning on an unsurprisingly quiet day market-wise this Christmas Eve.

A lack of any major movers saw Persimmon PLC (LSE:PSN) head the fallers with a 1.9% drop after rival Vistry Group PLC (LSE:VTY) issued its third profit warning of the year earlier on.

The likes of Barratt Redrow PLC (LSE:BTRW) and Taylor Wimpey PLC (LSE:TW.) also dipped into the red as a result.

Just 11 FTSE 100 companies were in the red though, with Airtel Africa PLC (LSE:LON:AAF) heading the risers, up 3.0%, ahead of JD Sports Fashion PLC (LSE:LON:JD.) and Vodafone Group PLC (LSE:VOD).

10.15am: Vinted cites cost-of-living as £2bn spent on pre-loved Christmas gifts

Vinted’s boss has pointed to cost-of-living pressures as the value of second hand goods sold in the run up to Christmas is expected to top £2 billion.

Second-hand shopping is set to account for 10% of all festive gift shopping this year, according to a report by the pre-owned goods online marketplace and Retail Economics.

Over four in five people had signalled they would spend some of their Christmas shopping budgets on pre-owned goods.

Many also reported they would sell their own pre-loved items to fund purchases.

Vinted chief executive Adam Jay said rising consumer costs had likely accelerated a trend which has seen shoppers turn to second hand shopping in an interview with Sky News.

"I'm sure the cost of living crisis has been a boost," he commented.

“But I do think this trend was happening anyway because of people's consciousness around overconsumption, around sustainable buying and sustainable consumption.”

9.40am: Royal Mail (LON:IDSI) accused of 'faking' deliveries

Royal Mail is facing calls to investigate reports of accusations some managers are 'faking deliveries' to meet bonus targets.

A story in the Telegraph suggested workers at the International Distribution Services PLC (LSE:IDS)-owned postal firm have been told by some managers to class parcels as “inaccessible”, even if no attempt at delivery was made.

As a result, some parcels might not arrive in time for Christmas, said the report.

Justin Madders, the minister for postal services, called on both the Royal Mail and regulator Ofcom to investigate, adding he was disturbed by the report... Read more

8.48am: AstraZeneca pulls EU lung cancer drug application

AstraZeneca PLC (LSE:LON:AZN) has pulled a marketing authorisation application for its key lung cancer drug in the European Union.

FTSE 100-listed AstraZeneca noted on Tuesday that it had voluntarily withdrawn the application for datopotamab deruxtecan after feedback from the Committee for Medicinal Products for Human Use of the European Medicines Agency.

The experimental precision drug, developed with Japan's Daiichi Sankyo, had been granted a breakthrough therapy designation in the US earlier this month.

Disappointing trial data around the drug, which had faced high hopes, has repeatedly hit AstraZeneca’s share price though.

Results most recently in September showed that the drug did not significantly improve overall survival results for patients.

AstraZeneca has laid out targets to generate US$80 billion (£63.7 billion) in revenue by 2030, with this largely contingent on its oncology drugs, such as datopotamab.

Shares were up 0.4% on Tuesday.

8.09am: FTSE 100 heads higher early on

The FTSE 100 enjoyed a brighter start to the day on Christmas Eve, adding 32 points to reach 8,134.

Endeavour Mining PLC (LON:EDV) (LSE:EDV, TSX:EDV, OTCQX:EDVMF) led the early risers, as the likes of Associated British Foods PLC (LSE:LON:ABF), Next PLC (LSE:LON:NXT) and Weir Group PLC (OTC:WEGRY) (LSE:WEIR) also racked up gains.

Housebuilders, including Taylor Wimpey PLC (LSE:TW.), Barratt Redrow PLC (LSE:BTRW), Persimmon PLC (LSE:PSN) and Berkeley Group Holdings PLC (LON:BKGH) (LSE:BKG), dominated the fallers in the meantime.

FTSE 250-listed rival Vistry Group PLC (LSE:VTY) had issued its third profit warning of the year earlier on, prompting shares to drop over 18% following Tuesday’s open.

8.00am: Vistry warns on profit again

Vistry Group PLC (LSE:VTY) has warned on profits for a third time this year, this time relating to delays over completions and signing off transactions.

The housebuilder had already cut guidance twice due to cost overruns in its south division but reduced it by another £50 million today due to the delays.

Adjusted profit before tax for 2024 is now expected to be £250 million compared to the previous guidance of £300 million... Read more

7.53am: EV targets review launched in the UK

A review on targets requiring carmakers to make up a proportion of sales annually with electric vehicles (EVs) has been launched in the UK.

Manufacturers will have eight weeks to submit views on the zero emission vehicle mandate under the consultation, transport secretary Heidi Alexander announced.

Firms have warned over job losses due to the targets as they struggle to avoid fines against muted demand for EVs.

Both Ford Motor (NYSE:F) and Stellantis-owned Vauxhall previously cited the rules upon announcing job cuts recently, with the latter set to close its van factory in Luton.

Under these, carmakers have to ensure that electrics account for 22% of their sales this year, before the target increases annually to 100% come 2035.

However, EVs have made up only 18% so far this year, which is the first year of the mandate.

Britain’s new Labour government has also previously pledged the bring forward the effective ban on new petrol and diesel car sales to 2030, in line with a previous target.

This is not expected to be altered, with the government instead mulling adding hybrids and flexibilities to the scheme, such as by expanding a scheme allowing carmakers to trade credits to avoid fines.

7.34am: Kooth wins $1.45mln contract for New Jersey mental health support

Kooth PLC (AIM:KOO) has announced a $1.45 million (£1.16 million) contract to provide mental health support to students across New Jersey in the US.

Kooth’s Soluna platform will offer self-guided tools, content and activities to some 50,000 students aged 13 to 18 under a pilot programme, the AIM-listed firm said on Tuesday.

Eligible students will also get access to confidential counselling and coaching during the pilot, which is initially set to last for a year.

“At Kooth, we're proud to be able to offer young people access to safe and secure counselling and coaching support,” chief executive Tim Barker commented.

7.09am: Stocks to edge up

The FTSE 100 was seen edging higher ahead of a shortened session for Christmas Eve on Tuesday.

Futures had London’s blue-chip index adding four points to reach 8,165, after Monday’s 18-point gain.

US markets also enjoyed a positive performance on Monday following steep declines last week as investors looked towards any last ditch hopes for a seasonal Santa rally.

Overnight, Asian markets were largely in the green, with Japan’s Nikkei and South Korea’s Kospi among few facing declines.

5.00am: Tuesday's schedule

Christmas Eve brings a quiet schedule, with US macroeconomic news set to dominate.

Home sales in the US data is expected to show 660,000 purchases through November, against October's 610,000.

Announcements due:

AGMs: Shield Therapeutics (LON:STXS) PLC

Economic news: Durable Goods orders (US), New Home Sales (US)

Read more on Proactive Investors UK

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