By Patrick Munnelly, Market Analyst, Tickmill
Once again, the FTSE 100 was hugging the flatline as the blue chip index limped towards the finish line, closing down 8 points at 7762.95.
FTSE 100 biggest movers
The major drag today was RS Group Plc LON:RS1, the UK-based provider of industrial and electronic products, experienced a sharp decline in its stock price as it highlighted slower industrial growth. The company’s shares fell by 7%, making it the top loser on the day. This drop in stock value marks its lowest level since June 22 last year, and it is on track to have its worst day since April 5. RS Group indicated that the trading performance during the first seven weeks of the financial year reflected a slowdown in industrial growth. Taking into account the losses in previous trading sessions, RS Group’s stock has experienced a year-to-date decline of 10%+.
On the positive side of the ledger is Vodafone LON:VOD whose shares are trading up just under 3% on the session buoyed by a well received presentation at COMEX. Vodafone is using COMEX 2023 as a platform to demonstrate how 5G technology is set to revolutionise the world. Through their showcase, Vodafone envisions a future where various aspects of daily life are transformed by 5G capabilities. For example, traffic signals that can respond in real-time to the situation on the road, drone delivery services becoming a viable option, and immersive gaming experiences that make racing through the streets of Monaco feel incredibly realistic. Vodafone’s purpose-built exhibit aims to bring the potential of 5G to life, allowing visitors to engage with innovative demonstrations that respond to their movements and thoughts. By showcasing these possibilities, Vodafone aims to illustrate the immense potential of 5G technology in shaping a more connected and advanced world.
UK Economy sees improvement
On the fundamental front, the UK economy is expected to show improvement in the second quarter, according to the Quarter over Quarter flash composite PMI. However, the implications for the Bank of England (BoE) are seen as hawkish. The survey suggests that the Monetary Policy Committee (MPC) may need to take further action to address persistent inflationary pressures. Furthermore, both manufacturing and service respondents expressed weaker business optimism compared to April, citing concerns about the broader economic outlook, higher interest rates, and weakness in the residential property market.
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