...By Lola Smith for TDPel Media.
The FTSE 100 index fell by 11.83 points to 7840.81 in a packed session of updates.
Jittery investors took no chances, and selling was evident as worries emerged that problems in America’s regional banking sector might cause tighter lending conditions, which could slow down the US economy.
This nervousness was reflected in the falling oil prices, with Brent crude dropping to $78 a barrel.
BP shares also faced pressure, dropping by 6.1p to 527p.
St James’s Place, Weir, and Howden Joinery were among the fallers in today’s trading.
Wealth manager, St James’s Place, despite reporting a “good quarter” where advisers attracted £4.2 billion of new client investments, experienced a dip in shares by 62.5p to 1177p.
Mining engineer Weir, who reiterated 2023 guidance, also saw its shares drop by 55.5p to 1837.5p.
London Stock Exchange shares were also hit, falling by 18p to 7968p, following its first quarter update, which marked the end of its strong run.
Although total income increased 15% to £2 billion due to strength in data and analytics, lighter stock market activity resulted in a retreat in shares.
In the FTSE 250 index, Howden Joinery fell 30.6p to 638p as its UK depots reported a broadly flat revenues performance at the start of 2023.
Capricorn Energy also fell by 10% or 25.4p to 217.2p.
The former Cairn Energy business revealed the details of a five-point strategic plan that will scale back all exploration spending outside Egypt materially.
Capricorn Energy has also started a sale process for its UK assets, which includes five licenses in the southern North Sea.
Naked Wines was one of the smaller stocks that experienced positive trading.
The company’s CEO, Nick Devlin, announced early progress on the company’s “pivot to profit“ turnaround strategy, resulting in a 1.2p increase to 115p.
Devlin forecasted revenues of £350 million for the year to 3 April, leading to underlying earnings at the top end of guidance between £15 million and £18 million.
He also stated, “We enter the 2024 financial year as a significantly larger and substantially more profitable business than we were pre-pandemic.”
Analysis and commentaries
Today’s trading on the FTSE 100 was largely affected by investors’ concerns regarding the US economy, which could result in tighter lending conditions.
The fall in oil prices and BP shares, along with the dip in shares of companies such as St James’s Place, Weir, and Howden Joinery, is a clear indication of this apprehension.
The mining engineer Weir, despite reiterating 2023 guidance, saw its shares drop by 55.5p to 1837.5p. This dip in shares could be due to investors’ concerns regarding the economic climate, especially with the potential of tighter lending conditions.
London Stock Exchange shares also fell by 18p to 7968p.
This fall in shares could be attributed to the lighter stock market activity, despite the strength in data and analytics, which resulted in a 15% increase in total income to £2 billion.
Naked Wines, however, had a positive trading day.
The CEO, Nick Devlin, expressed confidence in the company’s future
