By Patrick Munnelly, Market Strategist, Tickmill
London’s UK export-heavy FTSE 100 index started the week on the backfoot experiencing a slight decline due to the underperformance of mining and oil companies’ shares. The blue-chip index registered a decrease of 0.23% in value by the close.
This drop was primarily influenced by mounting concerns regarding China’s economic rebound and its property market burdened with debt.
The apprehension surrounding China’s property market escalated when the onshore bonds of Country Garden, a prominent property developer in the country, were suspended. This raised further alarm about the situation. As a result of these concerns, energy stocks also saw a decline of 0.5%.
The easing of crude oil prices was driven by worries about China’s stumbling economic recovery and a stronger US dollar. Adding to the market’s unease, geopolitical tensions were on the rise following an incident where a Russian warship fired warning shots at a cargo ship in the southwestern Black Sea on Sunday.
FTSE 100 biggest movers
Entain LON:ENT, the owner of Ladbrokes, finds itself among the prominent losers on the FTSE 100 in the UK, with its shares experiencing a decline of 3.24%.
A report from the Sunday Times indicates that Entain is exploring the possibility of recovering substantial bonuses that were granted to former board members, including the former CEO Kenny Alexander.
In a recent development, Entain made known its decision to set aside £585 million (equivalent to $742.48 million) to address a potential settlement with investigative authorities concerning potential bribery allegations related to its past operations in Turkey. According to the Sunday Times, top executives within the company shared incentives amounting to £82 million during the period between 2011 and 2017, coinciding with GVC’s (now Entain) operations in Turkey.
Pipping Entain to the bottom spot was Ocado LON:OCDO, shedding 4.33% on the session. Several batches of a popular granola brand have been withdrawn from sale in the UK due to concerns that the boxes might contain small stones. Rude Health’s Low Sugar Almond and Hazelnut Granola products have been labelled with “do not eat” stickers following the discovery of potential stone fragments. This trendy cereal, favoured by health-conscious consumers, is typically available through the online retailer.
On the positive side of the ledger Airtel Africa LON:AAF, a company listed on both the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE) sits near the top of the table, closing up 2.94%, as the company announced its intention to be listed on the Ugandan stock exchange. This move aims to promote significant local ownership of Airtel Uganda Limited, with a focus on attracting Ugandan investors.
This listing is expected to contribute to the growth of Uganda’s capital markets.
On the fundamental front, a survey revealed that British employers are anticipating a 5% increase in wages over the upcoming year. This trend is accompanied by a rising practice of offering counter offers to retain employees who are enticed by higher salary offers from rival companies.
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