By Patrick Munnelly, Market Strategist, Tickmill
On Friday, the UK’s FTSE 100 index reversed its earlier direction and moved higher gaining 0.07% on the session.
This increase in the index was primarily driven by gains in mining stocks and a notable surge in the share price of Ocado LON:OCDO, which rose by 7% after taking its biggest hit in nearly 11 years yesterday. It appears bargain hunters have stepped in, in a continuation of a whipsaw year for the shares of the online grocer.
On the negative side of the ledger sits Halma LON:HLMA, down -3.75% at the close. Investors expressed concerns regarding the recent trading update, the firm has reaffirmed its full-year guidance, expressing expectations of achieving substantial organic revenue growth and a pre-tax profit margin of around 20%.
The company anticipates that its revenue and profit will be slightly skewed toward the second half of the year, aligning with patterns seen before the COVID-19 pandemic.
The update indicates that order levels have surpassed those of the previous year, with Safety and Environmental & Analysis serving as the two primary growth drivers.
However, in the healthcare sector, order levels have been lower as customers are reducing their inventory and facing their own cost pressures.
During the first half of the year, Halma made three acquisitions with a total consideration of £80 million. In the prior year, the company set a record in terms of spending on acquisitions, totaling close to £400 million.
Management has stated that they have a “healthy” pipeline of potential acquisitions across all three business sectors, suggesting continued expansion efforts in the near future.
Podcast: Everything you need to know about the FTSE 100 Index
Subscribe to our podcast on your favourite platform
Don’t miss out on our weekly podcast. You can find us on Spotify, Soundcloud, Amazon, Apple, YouTube and many other popular platforms
