- Advertisement -spot_img
28.2 C
Lagos
HomeBusinessLondon stocks post first weekly decline of the year

London stocks post first weekly decline of the year

- Advertisement -spot_img

The UK’s main stock indexes rose on Friday but marked their first weekly losses of the year on growing worries about a recession and major central banks staying the course despite signs of a moderation in inflation.

The FTSE 100 closed 0.3 percent higher, while the more domestically-focussed FTSE 250 midcaps added 0.7 percent.

But the gains were not enough to reverse losses recorded during the week as weak U.S. economic data and hawkish comments from central bankers offset optimism about China’s reopening from COVID-19 lockdowns.

The FTSE 100 ended the week 0.9 percent lower, while the midcap index lost 1.3 percent.

Inflation-pinched British consumers cut their shopping by the most in the key month of December in at least 25 years, official data showed, dashing hopes for a Christmas boost for the country’s flagging retail sector.

“It is hard to put yourself into the psychology of a retail sector investor sometimes,” said Sanjiv Tumkur, head of equity research at Rathbone Investment Management in London.

READ ALSO: NNPC spends N4.4 trln on fuel subsidy last year, fails to remit revenue to govt

“Maybe they are saying the retail sales data wasn’t great but it could have been a lot worse and as long as the retail sales aren’t falling off a cliff, then there is value in some of these retailers.”

The UK retail index rose 1.1 percent, taking its year-to-date gains to 14.2 percent after a torrid 2022.

Online fashion retailers Asos and Boohoo jumped 11.1 percent and 8.5 percent, respectively, after BofA Global Research said it was a buyer of the stocks, and noting the sector is trading at “undemanding” valuations.

British stocks declined on a weekly basis for the first time this year

Market participants are leaning towards a 50 basis point rate hike by the Bank of England next month, which would be its tenth straight hike.

Although British headline inflation has fallen from a peak of 11.1 percent in October, it was still running at 10.5 percent in December, data earlier this week showed.

Meanwhile, shares of SSE Plc climbed 2.9 percent after the power firm raised its annual earnings forecast, helped by strong market conditions and persistently high energy prices.

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img