By Patrick Munnelly, Market Strategist, Tickmill
On Monday, the UK’s FTSE 100 opened the week on a negative note, closing down 7 points at the bell. The commodity-heavy FTSE 100 experienced a 0.1% decline during the session having last week seen significant gains, driven by expectations that interest rates have reached their peak.
Ashtead Group’s LON:AHT shares were the biggest fallers on Monday, shedding over 10% after the company warned of a potential FY adjusted profit below market expectations, citing a depreciation charge of $2.12 billion. Additionally, the company revised its growth projections for both Group and US rental revenue downward from the previous range of 13-16% to 11-13%. As of the last close, Ashtead Group’s shares were up approximately 11% year-to-date.
On the positive side of the ledger shares of technical products and services provider Diploma LON:DPLM rose by 11%, making it the top gainer. Diploma projected an upbeat outlook for its full-year operating margin, expecting it to be approximately 19.7%, surpassing the company-compiled consensus of 19.3%. The company also anticipates that its organic revenue growth for the fiscal year 2024 will be around 5%, compared to 8% in the current year. Diploma beat estimates with a 24% increase in full-year adjusted operating profit and a 19% rise in revenue. As of the last close, Diploma’s stock was up 8.8% year-to-date.
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