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(Alliance News) - The FTSE 100 ended the last session of 2019 on a dull note amid a quiet day for company news, though managed to post a double-digit percentage increase for the year.
The FTSE 100 index closed down 44.61 points, or 0.6%, at 7,542.44 on Tuesday. London's blue-chip index gained 12% in 2019.
The FTSE 250 ended down 52.84 points, or 0.2%, at 21,883.42, surging 25% this year and outperforming its blue-chip counterpart. The AIM All-Share closed just 0.25 of a point higher at 958.26, ending the year 12% higher.
Tuesday's retreat by equities does, however, come after a strong Christmas week for London shares, with the mid-cap FTSE 250 reaching a record closing high and breaching the 22,000 mark for the first time.
The Cboe UK 100 ended down 0.4% at 12,801.90 on Tuesday, the Cboe UK 250 closed down 0.2% at 19,821.14, and the Cboe Small Companies ended flat at 12,240.68.
In European equities on Tuesday, the CAC 40 in Paris was down 0.1% in late trade, with markets in France closing shortly for New Years Eve. Markets in Germany were closed completely on Tuesday, the DAX 30 having ended down 0.7% on Monday to gain 25% in 2019.
"It has been a year for rallies in equities, even for the FTSE 100, which is up about 12% in price terms from New Year's Eve 2018. Compared to the S&P 500 or the Dax, this is fairly unimpressive, but is unsurprising given the tough macro outlook not just for the UK but for the broader global economy. We endured plenty of Brexit and trade war headlines in 2019, but these will go with us into next year, ensuring more volatility for traders and investors," said Chris Beauchamp, chief market analyst at IG.
"The dollar ends the year on the back foot too, with signs of further life today in a host of other currencies. In addition, the last year has been a good one for gold bugs, and 2020 may well be a strong one too, if inflation picks up and Fed policy remains loose," Beauchamp said. "Gold seems to have finished its pullback from the 2019 highs, and having stabilised in Q4 it looks poised to move higher once again."
The pound was quoted at USD1.3200 at the London equities close Tuesday, higher compared to USD1.3136 at the close on Monday.
Sterling started the year below the USD1.30 mark as Brexit worries continued into 2019, with the pound rising slightly into March but falling back again to trade below the USD1.20 mark in August, near levels not seen since 1985.
Sterling got a boost at the start of December, however, as Prime Minister looked set to secure a sizeable parliamentary majority in the recent UK general election, but as the latest Brexit deadline of January 31 nears, the pound became jittery once again.
European Commission president Ursula von der Leyen just a few days ago told the French business newspaper Les Echos she was "very concerned" over how little time there is to negotiate on future trade.
Negotiations between the remaining members and the British government on future trade, fisheries, education and transport relations can only begin after January 31 and must conclude by the end of 2020. Such trade pacts routinely take years to complete, and businesses fear that the UK could face a new "no-deal" Brexit scenario at the start of 2021 if questions about whether tariff-free trade with the country's biggest trading partner remain unanswered.
Elsewhere in forex, the euro stood at USD1.1230 at the European equities close Tuesday, up against USD1.1216 at the same time on Monday. Against the yen, the dollar was trading at JPY108.55, soft compared to JPY108.83 late Monday.
"In the FX market, the top performers [in 2019] were currencies backed by some yields current account surpluses, and inflation-targeting central banks. The Canadian dollar was the top G10 currency and even the Turkish Lira, universally reviled, produced near double-digit returns for dollar investors thanks to the magic of carry," said Kit Juckes, a strategist at Societe Generale.
Stocks in New York were called for a flat start to the last session of 2019. Markets in the US will be open for a normal, full-day session on Tuesday, though will be closed on Wednesday.
In commodities, Brent oil was quoted at USD65.94 a barrel at the London equities close Tuesday from USD66.14 late Monday.
Though off the year's high of just over USD72 a barrel, oil had started 2019 below the USD60 mark, receiving a sharp boost in September after attacks on major Saudi oil facilities which initially put a halt to about half of Saudi Arabia's oil output.
Saudi Arabia managed to put these woes behind it, however, with the record-breaking IPO of national oil & gas firm Saudi Aramco in December. Aramco had priced the initial public offering at 32 riyals, about USD8.53, per share, raising USD25.6 billion and eclipsing Alibaba Group Holding's USD25 billion IPO of 2014 to become the world's largest.
Meanwhile, gold was quoted at USD1,521.04 an ounce at the London equities close Tuesday against USD1,515.03 at the close on Monday. Having started the year trading below the USD1,300 mark, the safe haven asset has risen considerably in 2019 amid geopolitical worries, including the US-China trade war and Brexit.
Trading at over USD1,500 towards the year-end, the price of gold is around its highest level since 2013.
This gold surge was unable to stem share price declines for former blue-chip miner Fresnillo in 2019, however, which fell 26% over the course of the year, prompting its relegation to the FTSE 250 earlier this month. The stock closed flat at 640.20 pence on Tuesday.
Elsewhere in the mining space, it was a tough year for Glencore in the wake of regulatory woe. The commodities house shed 18% in 2019 as both the UK Serious Fraud Office and the US Commodity Futures Trading Commission placed the company under investigation.
Glencore closed down 0.8% at 235.35p on Tuesday.
The top FTSE 100 performer this year was JD Sports Fashion, despite only being a member of the index since June, with its share price more than doubling. The athleisure retailer has reported solid growth amid a flagging UK retail backdrop, while seeing encouraging signs in its US operations. The stock closed up 0.6% at 837.40p on Tuesday.
In the FTSE 250, it was a stellar year for Dunelm, with the home furnishing retailer's share price more than doubling.
Just this month the company upgraded its guidance for the financial year ending in June, with profit now expected above prior expectations. Dunelm closed down 1.2% at 1,156.00p on Tuesday.
Meanwhile, baker Greggs - closing up 0.3% at 2,298.00p on Tuesday - saw shares surge more than 80% as momentum endured from the publicity around its vegan sausage roll launched back in January.
Bringing up the rear of the mid-caps for 2019 were Tullow Oil and Aston Martin Lagonda Global Holdings.
Tullow Oil slumped more than 60% this year following multiple production guidance downgrades and news earlier this month that it had suspended its dividend and Chief Executive Officer Paul McDade and Exploration Director Angus McCoss had resigned with immediate effect by mutual agreement.
Tullow Oil closed down 1.1% at 64.00p on Tuesday.
Luxury car maker Aston Martin shed nearly 60% as it continued to slump following 2018's IPO. The stock closed down 0.5% at 519.80p on Tuesday, having floated in October 2018 at 1,900p.
James Bond's car maker of choice in the middle of the year cut its unit sales guidance for 2019 and also reduced margin forecasts, earlier in December confirmed it was evaluating various funding options and was in talks with potential investors.
Elsewhere in London, Metro Bank shares collapsed nearly 90% in 2019. The challenger bank came under increased pressure this year after UK regulators found an accounting error in its loan book at the start of 2019. The lender announced it had underestimated the risk on its commercial loans and needed to raise capital to compensate for the shortfall, an error which was spotted by the Bank of England's Prudential Regulation Authority rather than Metro Bank itself.
Metro Bank closed down 3.3% at 206.20p on Tuesday.
And not making it to the end of the year was Thomas Cook, which collapsed under the weight of its debt pile in September.
The tour operator in September was unable to secure an extra GBP200 million needed to keep the business afloat which left the firm with "no choice" but to take steps to enter into compulsory liquidation. Richard Moriarty, the chief executive of the UK Civil Aviation Authority, said the government had asked his organisation to launch "the UK's largest-ever peacetime repatriation" following Thomas Cook's collapse.
Thomas Cook shares, which once traded above 300p, were quoted at just 3.5p immediately prior to the firm's collapse.
Markets in Europe, including the UK, as well as the US will be closed on Wednesday for New Year's Day.
When traders return on Thursday, there will be a manufacturing PMI from China at 0145 GMT, and the same from Germany at 0855 GMT, the eurozone at 0900 GMT and the UK at 0930 GMT.
The UK corporate calendar on Thursday has Ryanair's December passenger numbers and a trading statement from Alpha FX Group. On Friday is clothing retailer Next's Christmas trading update.
By Lucy Heming; lucyheming@alliancenews.com
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