FTSE Test Three Week Lows Ahead Of Election Budget Release
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On Tuesday, Britain's leading stock index experienced a drop to its lowest point in nearly three weeks as investors await the UK’s election budget details tomorrow. The drop today was primarily due to the decline of Ashtead Group and commodity-related stocks. However, telecommunications testing company Spirent saw a significant surge of almost 60% after a buyout agreement. The FTSE 100, which represents the top-performing companies in the UK, decreased by 0.01%.
Ashtead, a British equipment rental firm, is the top loser on the FTSE 100 index, with its shares down 6.7% at 5,344p. The company, along with other commodity stocks, is dragging the FTSE 100 down by 0.4% to a near three-week low. Ashtead now expects full-year group rental revenue growth to be at the lower end of the 11-13% range. The third quarter of North American rental revenue growth was affected by a lower level of emergency response activity related to natural disasters and longer than anticipated actors' and writers' strikes. The company posted an 11% year-on-year decline in Q3 adjusted pre-tax profit. Ashtead's shares are down approximately 2% year-to-date.
On the positive side of the ledger Fresnillo, a UK-based mining company, experiences a rise in its stock by 2.1% to 485.5p, making it one of the top gainers on the FTSE 100 index. The company attributes this increase to higher volumes of silver, lead, and zinc sold, leading to a 10.6% rise in adjusted revenue to $2,869.1 million for the fiscal year. Fresnillo emphasises its focus on monitoring costs and implementing initiatives in 2023, with plans to continue development and deployment throughout 2024. The company also maintains its 2024 production outlook for silver and gold as stated in Q4. Despite this positive news, the stock has experienced a 38.6% decrease in the last 12 months. Sitting at the top of the blue chip index today is Intertek, gaining just under 6% on the session. The firm are a leading Total Quality Assurance provider, who saw a significant increase in its full-year 2023 profit, leading to a positive outlook for the company's performance in 2024. As a global company, Intertek offers a wide range of quality and safety services to various industries worldwide. The company's strong financial performance in 2023 and its optimistic expectations for 2024 indicate its continued success and growth in the market. This news is likely to bolster investor confidence and contribute to Intertek's position as a reliable and profitable player in the industry.
FTSE Bias: Bullish Above Bearish below 7650
- Below7590 opens 7550
- Primary support 7450
- Primary objective 7768
- 5 Day VWAP bearish
- 20 Day VWAP bearish
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