London stocks closed in the red on Monday, succumbing to downward pressure triggered by the anticipation of an imminent interest rate hike in the UK and disappointing growth expectations for China.
The FTSE 100 index concluded the day down by 54.24 points, or 0.7%, settling at 7,588.48. Similarly, the FTSE 250 experienced a decline of 176.60 points, or 0.9%, finishing at 18,854.29. The AIM All-Share also dipped, closing down 2.48 points, or 0.3%, at 790.11.
Next emerged as the top-performing blue-chip company, witnessing a surge of 4.8%. The retailer attributed its success to robust trading in recent weeks, fueled by warmer weather and increased consumer spending power. Next reported a remarkable 9.3% year-on-year rise in full-price sales during the first seven weeks of its second quarter, surpassing the predicted 5% decline. Consequently, the company raised its pretax profit guidance from £795 million to £835 million, reflecting a 4.1% decline compared to the previous year. Additionally, Next upgraded its full-price sales guidance from £4.53 billion to £4.67 billion, representing a 1.4% year-on-year increase.
Entain, the sports betting firm, witnessed a 1.3% increase in its shares following an upgrade to a “buy” rating by Reburn. The brokerage firm expressed its belief that the market’s negative reaction to Entain’s attempt to acquire a Polish operator was unjustified.
Mining stocks fared poorly within the FTSE 100, with Anglo American, Antofagasta, and Endeavour Mining witnessing declines of 2.3%, 2.5%, and 2.7%, respectively. Goldman Sachs’ downward revision of Chinese economic growth forecasts from 6% to 5.4% contributed to the negative performance. China’s significance as a major consumer of commodities coupled with weak economic growth predictions for the second-largest global economy raised concerns regarding future demand.
In the FTSE 250, Kainos experienced a 5.8% drop as it announced the departure of its CEO of 22 years, Brendan Mooney, by the end of September. Russell Sloan, the Digital Services Director, has been appointed as the new CEO to succeed Mooney.
Boohoo, the online fashion retailer, saw a 6.4% increase in its shares after urging comprehensive changes within the board of its investee, Revolution Beauty. Boohoo, which holds just under 27% of Revolution Beauty, declared its intention to vote against the re-appointment of Chief Executive Bob Holt, Chair Derek Zissman, and Chief Financial Officer Elizabeth Lake as directors during the beauty company’s upcoming annual general meeting. Revolution Beauty’s shares have been suspended since September 1, following its failure to meet the August 31 deadline for its first audit.
On AIM, Creo Medical experienced a significant surge of 19%. The medical device company announced that its Speedboat Inject endoscopy product had received clearance for use throughout European markets in the entire gastrointestinal tract. The product, which utilizes radio frequency and microwave energy for the cutting and coagulation of soft tissue, has already been approved for full gastrointestinal tract use in the US and Asia Pacific regions. It primarily aids in the prevention and treatment of bowel cancer.
