Soggy Start To The Week After Last Week’s Stellar gains

On Monday, the UK's FTSE 100 opened on a negative note, primarily driven by a nearly 14% plunge in the shares of equipment rental firm Ashtead Group, following a downbeat annual profit outlook. The commodity-heavy FTSE 100 experienced a 0.4% decline during the session,however, last week, the FTSE index experienced significant gains, driven by expectations that interest rates have reached their peak. Ashtead Group's stock became the top loser on London's FTSE 100 index shedding over 10%, after the company warned of a potential FY adjusted profit below market expectations, citing a depreciation charge of $2.12 billion. Additionally, the company revised its growth projections for both Group and US rental revenue downward from the previous range of 13-16% to 11-13%. As of the last close, Ashtead Group's shares were up approximately 11% year-to-date.

On the positive side of the ledger shares of technical products and services provider Diploma (DPLM) rose by just over 10%, making it the top gainer. Diploma projected an upbeat outlook for its full-year operating margin, expecting it to be approximately 19.7%, surpassing the company-compiled consensus of 19.3%. The company also anticipates that its organic revenue growth for the fiscal year 2024 will be around 5%, compared to 8% in the current year. Diploma beat estimates with a 24% increase in full-year adjusted operating profit and a 19% rise in revenue. As of the last close, Diploma's stock was up 8.8% year-to-date.

FTSE Bias: Bullish Above Bearish below 7400

• Below 7350 opens 7210

• Primary support at 7200

• Primary objective 7550

• 20 Day VWAP bullish, 5 Day VWAP bullish

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