FTSE slumps after US tech sell-off

Tue, 4th May 2021

The FTSE 100 slumped after a decent start on Tuesday as concerns over a global chip shortage sparked a tech sell-off in the US. By the close the index was down 0.7% at 6,923.17. In the US the S&P 500 was down 1.4% to 4,132.97 with the tech-focused Nasdaq index down 2.7% to 13,519.50 by 4.30pm UK time. Retailing group Frasers, formerly known as Sports Direct, rallied 6.4% to 548.5p after it kicked off an up to £60 million share buyback. Advertising company S4Capital firmed 1.8% to 569p, having upgraded its annual guidance after its first-quarter gross profit jumped 71% as acquisitions boosted sales. S4Capital also announced that it had acquired Brazilian digital performance agency Raccoon, for an undisclosed sum. Outdoor advertising group Ocean Outdoor reversed 2.2% to $7.90 as it booked a £184.3 million annual pre-tax loss after its revenue slumped 17% and it wrote down the value of its assets, citing the pandemic. Subprime lender Provident Financial fell 0.8% to 242.8p after it said it would announce the outcome of a review of its troubled consumer credit business next Monday. Provident Financial said it had noted recent media coverage regarding the review, including the possibility of a managed run-off of its home credit and Satsuma businesses. Healthcare investor Syncona climbed 3% to 244.5p on news that portfolio company Gyroscope Therapeutics had set a price range for a planned initial public offering in the US. Syncona said that range would represent an increase in value of its current shareholding in Gyroscope of £52 million-to-£72 million, or 7.7p-to-10.7p per Syncona share. Real estate investor Londonmetric Property dipped 0.2% to 225.2p as it secured £780 million of refinancing, including a £380 million private debt placement and two revolving credit facilities totalling £400 million. Student accommodation developer Unite added 0.3% to £11.69 as it extended a London-focused joint venture with GIC by 10 years to September 2032. Cocktail bar group Nightcap sank 8.6% to 30.62p, having launched a £4 million share issue, at yet-to-be-determined price, to help fund the acquisition of Adventure Bar, which would see it operate nine more properties. The maximum acquisition cost for Adventure Bar was £2.5 million, including an initial 1.0 million and up to £1.5 million of deferred consideration, dependent on financial performance. Flooring manufacturer Victoria firmed 2.7% to £10.06 on news that it had acquired Dutch artificial grass and carpets group Edel €49.4 million. Financial services group WH Ireland gained 0.9% 57.5p, even as it said it expected to return to the black, with a full-year pre-tax profit of around £1 million, on the back of a 29% rise in revenue. Story provided by StockMarketWire.com

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