By Patrick Munnelly, Market Strategist, Tickmill
On Friday, the FTSE 100 index in the UK reached a low not seen in over three months, driven by ongoing concerns about high global interest rates.
FTSE 100 biggest movers
However, there was positive news for Coca-Cola HBC LON:CCH as its shares surged after the bottler raised its profit outlook. Shares of Coca-Cola HBC AG rose by 5% to 2,372p, making it the second highest gainer in the FTSE 100 index. The company revised its forecast for organic operating profit growth for the fiscal year, raising it to a range of 9% to 12%. This is an improvement from the previous forecast of the top end of the range of -3% to +3%.
Coca-Cola HBC attributed the upgrade to a stronger-than-expected finish to the first half of the year and a “very good overall” performance in June. The company stated that its mid-term outlook from 2024 onwards remains unchanged. As of the last close, Coca-Cola HBC’s stock was up 22% year-to-date.
The positive profit outlook for Coca-Cola HBC provided a bright spot amidst the overall downward trend in the FTSE 100 index. However, Coca Cola HBC was pipped to the top spot on the index by the volatile Ocado LON:OCDO, as the online grocer bounced back after being downgraded by Morgan Stanley yesterday, reclaiming top spot on the blue chip index, gaining 7% on the session.
On the negative side of the ledger, Relx LON:REL sits at the bottom of the index as the speciality business services provider closed down 2.9% on the session. These additional losses come just days after Barclays issued a ‘neutral’ rating on the stock. Severn Trent LON:SVT are hot on Relx heels as the beleaguered water company faces further pressure sliding a further 2.3% as whispers regarding nationalisation continue to weigh.
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