Posted By Uma Rajagopal
Posted on November 21, 2024
By Sruthi Shankar
(Reuters) – The UK’s midcap index fell to its lowest in three months on Thursday after a disappointing trading update from CMC Markets, while sportswear retailer JD Sports Fashion sank following a profit warning.
The FTSE 250 index of domestically oriented companies dipped 0.1% by 1133 GMT, trading at its lowest since Aug. 5.
CMC Markets tumbled 15% after the trading platform reiterated its net operating income forecast for the year ending March 2025, disappointing investors who had expected an upgrade.
The stock was the biggest decliner among the FTSE 250 components.
The blue-chip FTSE 100, however, rose 0.4%, aided by a dip in sterling and health and safety device maker Halma’s 6.8% rise after it posted growth in half-year revenue and profit.
JD Sports Fashion plunged 12.2% after it warned annual profit would come in at the lower end of its guided range after a tough October of discounting, mild weather and consumer caution.
“JD Sports’ goal of scoring £1 billion in annual profits has been kicked down the road for the second year in a row,” said Dan Coatsworth, investment analyst at AJ Bell.
“Some may view this £1 billion figure as merely symbolic, but breaching this barrier is no mean feat and demonstrates a retailer has a lasting place in consumers’ affections and the scale to win in a competitive marketplace.”
Global stocks came under pressure after AI bellwether Nvidia’s revenue growth forecast failed to excite investors. [MKTS/GLOB]
Meanwhile, data showed Britain borrowed more than expected in October, highlighting the challenge facing finance minister Rachel Reeves who says she will fix the public finances as well as increase spending sharply.
The FTSE 100 dipped on Wednesday after data showed British inflation jumped by more than expected last month to rise back above the Bank of England’s 2% target, prompting traders to price in a slightly slower pace of rate cuts.
Investors expect the BoE to hold rates next month but see cuts of about 67 basis points by the end of next year.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty)
