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(Alliance News) - London's blue-chip FTSE 100 ended Wednesday's lacklustre session on a soft note, continuing the week's losing streak as shares in Persimmon, Just Eat Takeaway.com and oil majors finished in the red.
The FTSE 100 closed down 8.59 points, or 0.1%, at 6,745.52 on Wednesday, bringing the index 1.9% lower in the week-to-date. The mid-cap FTSE 250 ended down 96.65 points, or 0.5%, at 20,616.31.
However, the AIM All-Share - boosted by a well-received trading update from ASOS, the index's largest constituent with a market capitalisation of GBP5.28 billion - closed up 6.53 points, or 0.6%, at 1,185.56.
The Cboe UK 100 ended down 0.1% at 671.80, the Cboe UK 250 closed down 0.7% at 17,878.13, and the Cboe Small Companies ended up 0.4% at 12,264.54.
"Brent Crude's retreat from its early 11-month high, and BP and Shell subsequently going in in the wrong direction themselves, nixed the FTSE's hopes of mounting a recovery this Wednesday," said Connor Campbell, financial analyst at Spreadex.
He continued: "The index wasn't helped by firm losses in its banking and mining sectors, as well as Just Eat's 4.6% slide following the reveal that its underlying profit margins dramatically shrank in the fourth quarter due to aggressive investment in expansion."
Just Eat Takeaway.com shares ended down 4.3%. The takeaway platform reported a rise in total orders for the fourth quarter of 2020, growing by 57% year-on-year to 179.8 million from 114.9 million.
For 2020 as a whole, total orders increased by 39% to 588.1 million from 422.1 million in 2019, as lockdown restrictions led to the closure of restaurants and pubs, driving customers to the food ordering platform.
For the final quarter of 2020, Just Eat expects revenue to be between EUR720 million and EUR740 million, a 60% to 64% increase from EUR451 million the prior year. For the year as a whole, the group anticipates revenue to range from EUR2.38 billion to EUR2.40 billion, reflecting 51% to 52% year-on-year growth versus 2019. However, the company expects an adjusted earnings before interest, tax, depreciation, and amortisation margin of 10%, reflecting significant investments in its Delivery offering in the fourth quarter of 2020.
Ending as the worst blue-chip performer was housebuilder Persimmon, tumbling 6.2% amid a note of caution over its outlook.
For the year, the home builder posted revenue of GBP3.3 billion, down 8.8% from GBP3.65 billion recorded for 2019. New home completions totalled 13,575, down from 15,855 the year prior. However, average selling price rose to around GBP230,500 from GBP215,709.
Looking ahead, the York-based company warned that while the vaccine rollout has commenced, uncertainties surrounding the potential impact of the pandemic remain, especially in relation to unemployment levels and consumer confidence. It also expressed concern about the potential impact of an end to the stamp duty holiday in the UK, due at the end of March.
BP shares closed down 0.4% while Royal Dutch Shell 'A' and 'B' shares dipped 0.9% and 1.2% respectively. Brent oil was quoted at USD56.21 a barrel at the London equities close Wednesday, easing from USD56.61 late Tuesday.
Elsewhere in London, ASOS shares gained 2.0% as the online-only clothing retailer got a lockdown tailwind.
In the four months to December 31, which ASOS labels P1, group revenue climbed 23% to GBP1.36 billion from GBP1.11 billion a year earlier. At constant currency, revenue rose 24% year-on-year. In the UK alone, retail sales had a 36% leap to GBP554.1 million from GBP408.9 million.
The AIM-listed retailer said it expects a net-Covid benefit to pretax profit of GBP40 million in the first half of its financial year ending August. ASOS explained that this is due to virus restrictions likely still being in place "for the balance of the first half".
ASOS added: "Whilst our outlook for the balance of the year remains unchanged, given the ongoing virus and the likely economic impact on our core 20-something consumer, the strength of our performance in P1 with the anticipated firs half Covid pretax profit benefit, means we now expect financial 2021 pretax profit to be at the top end of current market expectations."
Peer Boohoo, which releases its own trading statement on Thursday, closed up 1.9% in a positive read-across.
In European equities on Wednesday, the CAC 40 in Paris ended up 0.2%, while the DAX 30 in Frankfurt ended up 0.1%.
The euro stood at USD1.2158 at the European equities close Wednesday, flat against USD1.2157 at the same time on Tuesday.
The pound was also largely unchanged, at USD1.3629 at the London equities close Wednesday compared to USD1.3621 at the close on Tuesday, despite the UK hitting a grim daily record for coronavirus fatalities.
The UK announced another 1,564 virus fatalities on Wednesday, a daily record and the first time the death toll has surpassed 1,500 in a 24-hour period since the pandemic began. The latest figures take the total mortality count to 84,767, among the highest rates in Europe alongside Italy. The UK registered another 47,525 new infections as total cases climbed to 3,211,576.
Stocks in New York were mostly higher at the London equities close, with the DJIA flat, the S&P 500 index up 0.2%, and the Nasdaq Composite up 0.6%.
The US House of Representatives was set to impeach President Donald Trump for inciting insurrection Wednesday, with several key Republicans backing the Democrat-led push to bring down the real estate tycoon in flames just a week before he leaves office.
Washington was in a state of siege as lawmakers opened their session, with armed National Guard soldiers deployed, central streets barred to cars and public spaces fenced off.
Trump's epic downfall was triggered by his January 6 speech to a crowd on the National Mall, telling them that Joe Biden had stolen the election and that they needed to march on Congress and show "strength" - which sparked a riot in Washington that left five people dead.
Safe havens strengthened amid Wednesday's tepid mood. Gold was quoted at USD1,857.59 an ounce at the London equities close Wednesday against USD1,844.07 at the close on Tuesday. Against the yen, the dollar was trading at JPY103.92 compared to JPY104.18 late Tuesday.
The UK corporate calendar for Thursday has trading statements from grocer Tesco, home furnishings retailer Dunelm, housebuilder Taylor Wimpey and Premier Inn owner Whitbread.
In Thursday's economic calendar is Irish inflation at 1100 GMT and minutes from the European Central Bank's last meeting at 1230 GMT. US continuing jobless claims are due at 1330 GMT and US Federal Reserve Chair Jerome Powell speaks at 1730 GMT.
By Lucy Heming; lucyheming@alliancenews.com
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