By Patrick Munnelly, Market Strategist, Tickmill
The FTSE 100 has closed out the month in the red with UK investors nursing losses of over 5.3% on the month with a 1% drop adding to the decline in the final session of May. The index closed down 75 points at 7446.14.
FTSE 100 biggest movers
Leading the blue chip index lower is Prudential LON:PRU, the London-listed insurer, experienced a decline of over 6% at the close, making it the top percentage loser on the day. The company announced that its Chief Financial Officer, James Turner, will be stepping down following a code of conduct investigation related to a recent recruitment process. The investigation revealed that Turner had not met the company’s standards. Prudential has appointed Ben Bulmer as the new CFO. Turner will remain with the company for four months to assist with the transition. The incident was identified through internal processes, and although the recruitment in question was not completed, the exact nature of the misconduct was not disclosed by a company spokesperson. Prudential clarified that the CFO’s departure has no implications for its financial performance, results, or operations. Year-to-date, the stock has declined approximately 0.22%.
Vying for the bottom spot is the beleaguered Ocado Group LON:OCDO, the British online grocer, which has experienced a significant drop, reaching its lowest level since December 2017. The stock fell by more than 5%. Ocado Group is expected to be demoted from the FTSE 100 index and added to the FTSE 250 index at the close, as stated by index provider FTSE Russell.
B&M European Retail tops the board
On the positive side of the ledger is B&M European Retail LON:BME, the discount retailer, saw its shares rise by over 8%, making it the top percentage gainer on the FTSE blue-chip index. The company has provided an upbeat outlook, forecasting higher core profit for 2024. B&M attributes this positive forecast to the growing demand from customers seeking lower-priced food and goods amidst a challenging cost-of-living environment. Additionally, the company reported an annual profit that aligned with its expectations. B&M’s UK unit also reported strong performance, with like-for-like sales increasing by 8.3% in the first nine weeks of the new financial year. Prior to this recent increase, B&M’s stock had already risen by nearly 16% year-to-date. The company’s ability to capitalise on customers’ cost-consciousness has contributed to its positive performance in the market.
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