FTSE 100 starts week on glum note as Ashtead sinks on weak outlook
In a disheartening start to the week, the UK's FTSE 100 faced a negative trend on Monday, mirroring global market uncertainties. As investors grappled with economic outlooks, shares of equipment rental giant Ashtead Group plummeted by nearly 14%, casting shadows on the market sentiment.
Reuters
The commodity-heavy FTSE 100 experienced a 0.4% dip in early trade, while the mid-cap index saw a marginal 0.1% decline. Last week's optimistic gains, driven by expectations of peaking interest rates, were overshadowed by the sudden downturn.
Ashtead Group's shares took a significant hit, dropping nearly 14%, following the company's announcement of an annual profit projection below market expectations. The decline was attributed to lower emergency response activity impacting its US business. Additionally, the company anticipates a substantial depreciation charge exceeding $2 billion for the year.
Despite this setback, the benchmark index managed to mitigate losses, thanks to a 0.3% climb in energy stocks that tracked the upward movement of oil prices.
On a different note, positive developments were observed in the technology sector. Shares of musicMagpie, a refurbished consumer technology firm, surged by an impressive 28%. The company revealed ongoing early-stage talks with BT Group and Aurelius Group, exploring potential offers to acquire the British online retailer specializing in used smartphones and electronic products.
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