London close: Stocks finish weaker as market jitters continue
London stocks closed in negative territory on Friday, as worries about the Covid-19 vaccine rollout and Reddit-fuelled market chaos knocked sentiment.
The FTSE 100 ended the session down 1.82% at 6,407.46, and the FTSE 250 was 0.69% weaker at 20,228.58.
Sterling was in the red as well, last losing 0.01% on the dollar to $1.3719, and falling 0.17% against the euro to €1.1299.
“Fear is running through the equity markets again as some trading apps have relaxed restrictions on certain stocks that have experienced colossal volatility recently, like GameStop,” said CMC Markets analyst David Madden.
“There are concerns that we could see frenzied trading again by retail players in selected stocks and that could renew fears that some hedge funds might adopt a cut and run policy, hence why equity markets are lower across the board.”
Madden said it was worth noting that indices were off the lows of the session, however.
“The EU has approved the AstraZeneca-Oxford coronavirus drug for use in the bloc, but keep in mind the roll-out of other vaccinations have been slow.
“In addition to that, supply constraints persist.”
In equity markets, housebuilders were under pressure, with Barratt Developments down 3.8% and Berkeley Group 2.56% lower, while engine maker Rolls-Royce lost 5.41%.
Prudential was down 5.14% after it announced on Thursday that it was planning to demerge its US business and considering a $3bn capital raise.
Trainline was flat at the close, having earlier been hit by a downgrade to ‘underweight’ at Barclays.
Evraz reversed earlier gains to slip 0.16%, after it said steel production rose 7.4% in the fourth quarter as its Russian plant increased activity after repairs and volumes improved in North America.
Polymetal also lost ground during the afternoon, closing down 1.46% after its full-year production beats forecasts, although it also warned over higher costs.
On the upside, Just Eat Takeaway was up 4.1%, the company having been a major beneficiary of Covid restrictions and lockdowns.
Market Movers
FTSE 100 (UKX) 6,407.46 -1.82%
FTSE 250 (MCX) 20,228.58 -0.69%
techMARK (TASX) 4,059.83 -0.91%
FTSE 100 - Risers
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,372.00p 4.00%
Pearson (PSON) 812.60p 1.58%
London Stock Exchange Group (LSEG) 8,686.00p 0.77%
Smiths Group (SMIN) 1,418.50p 0.64%
Fresnillo (FRES) 987.60p 0.49%
Diageo (DGE) 2,940.50p 0.20%
Entain (ENT) 1,241.00p -0.08%
SEGRO (SGRO) 954.20p -0.15%
Evraz (EVR) 501.40p -0.16%
Ocado Group (OCDO) 2,777.00p -0.18%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 91.70p -5.41%
Prudential (PRU) 1,172.50p -5.14%
M&G (MNG) 176.50p -4.45%
JD Sports Fashion (JD.) 749.80p -4.08%
Barratt Developments (BDEV) 638.80p -3.80%
British Land Company (BLND) 446.70p -3.38%
Auto Trader Group (AUTO) 564.00p -3.33%
Associated British Foods (ABF) 2,117.00p -3.29%
Imperial Brands (IMB) 1,473.50p -3.23%
HSBC Holdings (HSBA) 382.75p -3.19%
FTSE 250 - Risers
Hochschild Mining (HOC) 230.00p 9.94%
PureTech Health (PRTC) 401.00p 7.67%
TI Fluid Systems (TIFS) 249.50p 5.12%
Aston Martin Lagonda Global Holdings (AML) 2,030.00p 4.13%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,372.00p 4.00%
Micro Focus International (MCRO) 445.10p 3.97%
Genus (GNS) 4,926.00p 3.97%
Liontrust Asset Management (LIO) 1,280.00p 2.81%
Cineworld Group (CINE) 77.08p 2.75%
Kainos Group (KNOS) 1,240.00p 2.64%
FTSE 250 - Fallers
SSP Group (SSPG) 289.80p -5.73%
WH Smith (SMWH) 1,530.00p -5.26%
Provident Financial (PFG) 245.00p -4.74%
Carnival (CCL) 1,170.50p -4.70%
Ferrexpo (FXPO) 282.20p -3.82%
Marks & Spencer Group (MKS) 141.50p -3.77%
Schroder Asia Pacific Fund (SDP) 630.00p -3.39%
Trainline (TRN) 408.20p -3.09%
Aggreko (AGK) 585.00p -2.99%
JPMorgan Japanese Inv Trust (JFJ) 694.00p -2.94%