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FTSE 100 Live 25 June: Nvidia stock rises after three day drop, Airbus warning hits London shares

FTSE 100 Live (Evening Standard)
FTSE 100 Live (Evening Standard)

Nvidia shares are in focus after the tech giant’s reversal in fortunes continued last night.

The chipmaker is down by more than 10% since being named the world’s most valuable public company last week.

Elsewhere, traders are speculating on whether Chinese e-commerce giant Shein is close to announcing a London IPO.

FTSE closes lower

16:52 , Simon Hunt

The FTSE 100 closed the day lower, with the index down 0.4%, or 34 points to 8,248.

Richard Hunter, Head of Markets at interactive investor, said: “UK markets largely trod water. The FTSE100 is now up by 7.2% in the year to date as the end of the half-year approaches, in what has been an interesting six months as investors have cautiously sought value as an alternative to big tech in the US, while an average dividend yield of 3.6% has been an additional attraction.

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“For the market as a whole, particularly around the FTSE250, a resurgence in M&A activity based on cheaply regarded UK valuations has also enabled a rise of 4% for the more junior index. However, at the same time an exodus of listings mainly in the direction of the US has heightened concerns around the UK as an investment destination.”

Morrisons sales grow as it battles discount rivals on price

15:46 , Simon Hunt

Morrisons has posted another rise in sales over the latest quarter as it has sought to shake off competition from discount rivals Aldi and Lidl.

The Bradford-based supermarket chain said it recorded a “solid quarter of progress” after it was boosted by a “great start” to its Aldi and Lidl Price Match scheme launched in February.

It revealed that group like-for-like sales, excluding fuel and VAT, grew by 4.1% over the three months to April 28.

However, the growth represents a slowdown on the 4.6% increase reported in the previous quarter.

Morrisons also reported that underlying earnings, excluding fuel, increased by £321 million for the first half of its financial year amid a boost from its cost-cutting programme.

Read more

Nvidia shares lift as Nasdaq opens higher

14:49 , Simon Hunt

Nvidia’s stock has ended its three-day decline, rising 3% in the opening minutes of trade on Wall Street as it joined a rally in other AI-adjacent stocks.

Microsoft has been left out of that rally, however, as the OpenAI investor saw its shares dip slightly after the EU accused the computing giant of competition breaches over the use of its Teams app.

The S&P 500 opened higher by 12.86 points at 5,460.73, while the Nasdaq Composite gained 75.34 points to 17,572.16 at the opening bell.

Here’s a look at the key market moves.

Booming lettings propel revenues and profits at London estate agency Dexters

14:16 , Simon Hunt

London estate agency Dexters has seen profits grow on the back of its booming lettings division.

The 31 year old company said sales revenues were up by 23% to £181 million while operating profits rose 9% to £40.4 million in the year to end September, according to latest accounts filed at Companies House.

Revenue from lettings grew from £80 million to £105 million and accounted for 58% of total revenue during the 2023 financial year, up from 54% in 2022.

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Tortilla wraps up deal to buy French burrito rival

13:09 , Simon Hunt

Burrito chain Tortilla has bought its biggest European competitor in a deal worth nearly £4 million, as it hopes to attract new consumers on the go, ahead of the Paris Olympics.

Tortilla is buying 13 restaurants from rival Fresh Burritos, in prime locations in Paris and other cities in France.

The acquisition also includes a network of 19 franchised locations and the rights to the brand.

The London-based company, which has 89 stores, predominantly in the UK, said the purchase will give it a “launchpad” to expand further into Europe.

Read more

The company acquired rival Mexican chain Chilango last year (Tortilla/PA)
The company acquired rival Mexican chain Chilango last year (Tortilla/PA)

City Comment: Doveish hold feeding through to mortgage rates

11:26 , Jonathan Prynn

The roller coaster that has been mortgage interest rates over the past two years appears to be on the brink of a new downward lurch. Today, HSBC followed Barclays in cutting the cost of much of its range of home loans and the other big high street players are sure to fall in line over the coming days and weeks.

The new hope for borrowers comes after swap rates began to ease after last week’s “doveish hold” from the Bank of England. It takes a few days but that usually feeds through to the fixed rates that banks and building societies can offer their customers — and so it has come to pass.

The talk of decisions by several MPC members being “finely balanced” has finally persuaded the markets that August really is in play for the first cut in interest rates in a year.

It feels we have been here many times before of course. The markets were convinced at the start of the year that rates would be cut hard and fast through 2024. It did not happen, largely because the war against inflation took so much longer than expected to be won. Perhaps it is not over yet.

However, there are reasons to hope that the Bank really might be ready to act now. Labour of course will be coming into power on the back of a pledge to build 1.5 million homes over its five-year parliamentary term. There are plenty of arguments about lack of capacity in the sector to suppose that is fairly unlikely to be achievable. But even putting that to one side there is no chance of reaching that laudable goal without the housebuilders firing on all cylinders in response to strong demand from buyers. And they are very far from that just now.

Lower interest rates — finally — should slowly fire up house buyers’ enthusiasm, encouraging builders to invest more in new sites and starts. But it will all take time. And solving the housing crisis is one area where Keir Starmer can really not afford to disappoint.

Airbus warning hits Rolls and Melrose, FTSE 100 holds firm

10:19 , Graeme Evans

A profit warning by Airbus today dented the shares of Rolls-Royce and other aerospace-focused firms listed in London.

The European planemaker last night blamed supply chain issues for a cut in its 2024 commercial aircraft delivery target from 800 to 770.

It also lowered earnings expectations for its space systems business, sending the company’s shares down by 10% in Paris this morning.

Rolls lost 3% or 15.5p to 455.8p, even though Deutsche Bank earlier backed the turnaround story with an upgrade in target price to 555p.

GKN Aerospace owner Melrose Industries dropped 23p to 558.6p, while FTSE 250-listed components supplier Senior fell 2.6p to 159.4p and heat treatment specialist Bodycote retreated 4.5% or 33p to 698p.

European markets were sharply lower, whereas the support of commodity and energy stocks meant the FTSE 100 index only fell 5.01 points to 8276.54.

BP rose 4.4p to 478.55p and Shell by 22p to 2816.5p, mirroring Wall Street after Chevron and ExxonMobil last night led to the outperformance of the Dow Jones Industrial Average.

Growth-focused stocks dominated the FTSE 250 fallers board as Ocado lost another 12.6p to 299.9p, Trustpilot reversed 7p to 225.5p and Bytes Technology fell 13p to 546p.

The index declined 106.65 points to 20,455.92.

AIM-listed Gear4Music, the online retailer of musical instruments and music equipment, rose 10% or 12.8p to 146.8p after reporting annual earnings up by a third to £9.9 million.

Oil giants offer support in flat FTSE 100, Ocado down 5%

08:57 , Graeme Evans

Last night’s warning by Airbus that it would deliver fewer aircraft than planned in 2024 today left its mark on the shares of Rolls-Royce and Melrose Industries.

Rolls fell 4% or 18.6p to 452.7p while GKN Aerospace owner Melrose reversed 5% or 27.4p to 554.2p at the top of the FTSE 100 fallers board.

Gains of 1% for BP and Shell shares meant London’s top flight bucked weaker trends elsewhere in Europe, edging up 3.92 points to 8285.47.

Other blue chips in positive territory included British Gas owner Centrica, which lifted 2p to 139.2p, and Land Securities after a rise of 5p to 634.5p.

The FTSE 250 index fell 57.38 points to 20,505.19, led by Ocado shares as the retail and technology business lost 5% or 14.1p to 298.4p.

Elementis shareholder hits out over governance concerns

08:23 , Simon Hunt

Gatemore Capital Management, a shareholder in FTSE 250 company Elementis Plc, has accused it of having “uundermined investor confidence” over governance issues.

In a public letter the firm said: “The time is now for the Board to take immediate and decisive actions to address these governance concerns and realign the Company’s strategy with the interests of its shareholders.

“We have engaged with many of the largest active shareholders of Elementis and believe there is unity on all these issues. We strongly urge you and the Board to take prompt and decisive action.”

“Failing this, we may be compelled to unite the shareholders and pursue the replacement of the Chairman through an Extraordinary General Meeting to drive the necessary change within Elementis.”

LandSecs ups its holding in Bluewater shopping centre in Kent, buying 17.5% more for £120 million

07:40 , Michael Hunter

One of the UK’s biggest property companies is upping its stake in one of the south east’s most famous shopping destinations.

Land Securities will buy another 17.5% of the Bluewater mall near Dartford for £120 million from existing co-investor GIC.

The deal will mean the FTSE 100 company owns over two-thirds of the 210-store site, which is located near junction two of the M25.

Bruce Findlay, managing director, retail at Landsec said: “Bluewater is one of the UK's top retail destinations and a key part of our strategy to further build our relationships with key brands."

The deal ups LanSec’s share of Bluewater’s rents by over £10 million a year.

Shein IPO speculation grows

07:40 , Simon Hunt

Speculation that Chinese e-commerce giant Shein is about to unveil a London IPO intensified yesterday after a Reuters report suggested the company had already filed initial confidential paperwork for the move.

But according to the FT, the fast-fashion firm has yet to get approval from Beijing, as well as regulators in the UK, to complete the listing.

Shein has hired Goldman Sachs, JPMorgan and Morgan Stanley to work on the IPO, which could value it at more than £50 billion.

It is understood that Shein initially planned a New York IPO but switched to London amid pressure from regulators and US lawmakers.

Chapel Down weighs sale

07:22 , Simon Hunt

Winemaker Chapel down is exploring a sale which would see the firm delisted from the stock market as it weighs funding options.

The company’s share price has fallen more than 10% since the start of the year.

The firm said today: “Chapel Down’s growth strategy includes investing in new vineyards, a new purpose-built winery* to be operational for the 2026 harvest and the development of our brand home at Tenterden. Considering the timeline of these investments, the Board believes that it is now appropriate to review the full range of long-term funding options that support this plan.

“As part of the review, the Board will consider all alternatives, including investment from existing shareholders, investment from new shareholders, a sale of the Company, and other relevant transactions.”

 (Chapel Down)
(Chapel Down)

Nvidia selling continues, FTSE 100 seen higher after Dow Jones rally

07:21 , Graeme Evans

Nvidia shares closed down by another 7% last night, extending the reverse to 16% since Thursday’s intraday high.

The retreat by the AI-led semiconductors giant comes a week after being named the world’s most valuable public company, worth $3.3 trillion.

It’s now back to $2.9 trillion, putting pressure on the S&P 500 index having earlier accounted for 35% of the benchmark’s gains so far this year.

The rotation away from technology stocks left the S&P 500 down by 0.3% even though 70% of its constituents were higher. The tech-led Nasdaq fell 1.1%, whereas the Dow Jones Industrial Average rose 0.7%.

The FTSE 100 index closed up by 0.5% yesterday and is forecast to open today’s session ahead by another 14 points to 8296.