As the economies of countries such as France and Germany contracted more than the initial forecasts, the UK stocks experienced a fall from its highest level in the last 4 years. The benchmark gauge of UK stocks, the FTSE 100 Index declined by 31.75 points and is at 6327.36 currently. Incidentally, on yesterday, the gauge reached its highest level since May, 2008, thanks to the rallied earnings of the companies. In 2013, the gauge, so far, has recorded an increase of 7.3%, mainly being helped by the agreement of US policy makers over the budget deal. The benchmark gauge of Ireland, ISEQ Index went down by 0.1%, whereas, the broader FTSE All Share Index experienced a slid of 0.5%.
Richard Scrope, the analyst of Oriel Asset Management LLP, stated that UK market has acted pretty strongly to bad GDP numbers of France and Germany. He added that though the worst is over, things are still pretty tough for numerous companies in Europe and as the consensus numbers are worse than expected, the same is throwing a poor light in the economy of the entire region.
In 4th quarter, the GDP of Germany, the biggest economy of Europe, experienced a decline of 0.6%, whereas, the same slid down by 0.3% for France. Incidentally, according to initial estimates, the GDP was expected to decline by 0.5% and 0.2% for Germany and France respectively.
Coming to individual company stocks, Amec sank 7.3% and each share is currently priced at 1042 pence. The company has not been able to renew a share buyback program and hence that created a negative sentiment for the same. On the other hand, Carnival shares went down by 2.9% and are at 2500 pence per share. This marks the biggest drop for the shares since 20th December. Its earnings are expected to decline by 8 cents per share in 2013’s first half.
The UK distributor of Pepsi, Britvic Plc. experienced a tumble of 7.1% and each of its shares is priced at 390 pence now. Societe Generale SA downgraded its shares to sell, whereas, JPMorgan Chase & Co. downgraded the same to underweight. Barclays Plc. rated its stocks to be of neutral.
Man Group was an exception on today of the lot, as it went ahead by 2.3%, marking its highest price in 10 months of 111.1 pence per share.