MARKET REPORT: Wall Street glitch sends stocks plummeting 99%
Wall Street was rocked when a technical glitch appeared to send shares of some of America’s largest companies plummeting by about 99 percent.
In a dramatic session, the New York Stock Exchange said it was investigating an error that led to trading halts in at least 60 companies.
Among them were Berkshire Hathaway – Warren Buffett’s giant conglomerate – restaurant chain Chipotle and mining group Barrick Gold.
At one point, Berkshire Hathaway shares appeared to have fallen 99.9 percent.
The issue was later resolved and trading resumed normally, with share prices returning to previous levels.
IT glitch: In a dramatic session, the New York Stock Exchange said it was investigating an error that led to trading halts in at least 60 companies.
It was an entirely quieter session in London, despite a new wave of takeover activity and a 3 percent drop in oil prices to below $80 a barrel.
The FTSE 100 lost 0.2 percent, or 12.63 points, to 8262.75 and the FTSE 250 rose 0.8 percent, or 170.37 points, to 20900.49.
It came at a time when the takeover frenzy gripping the city showed few signs of slowing.
In a statement to investors, Brookfield Asset Management said it is in the “early stages of assessing a potential cash offer” for distribution center investor Tritax Eurobox.
Shares in the London-listed company, which owns distribution centers in Spain, Italy, Germany, Sweden and the Netherlands, rose 11.3 percent, or 6.1p, to 59.9p.
At the same time, ad agency Brave Bison outlined a sweeter proposition for its rival Mission Group.
After the offer of £27 million or 29p was rejected in early May, the suitor returned with an improved offer of £32.3 million or 35.1p.
Stock watch – Marlowe
Marlowe, whose largest shareholder is former Tory treasurer Lord Ashcroft, will pay a special dividend of £150 million next month.
The AIM-listed compliance services company completed the sale of a number of assets within its Governance, Risk and Compliance (GRC) division to private equity firm Inflexion for £430m at the end of May.
Marlowe will pay the special dividend on July 5 and then launch a £75 million share buyback.
Shares rose 5p, or 28p, to 586p.
Brave Bison was steady at 2.45p and Mission Group shares rose 3.4 per cent, or 0.8p, to 24.5p.
Pets at Home rose 8.9 per cent, or 26.4p, to 322.6p, after analysts at Liberum said it was the right time to ‘get off the fence’ and encourage its customers to buy shares again . The broker placed a ‘hold’ rating on the stock in January last year.
Liberum gave five reasons why Pets should be optimistic about the future, including the new digital platform and declining inflation.
Liberum warned there could be a “minor impact” from the investigation announced by the Competition and Markets Authority (CMA) last month in the veterinary sector, amid concerns over skyrocketing bills.
Pets at Home stressed last week that vets’ growth strategy is ‘not threatened’ by the review.
JD Sports raced ahead after one of its investors increased his bet.
According to the latest stock exchange, Fidelity has increased its stake in the self-proclaimed ‘King of Trainers’ from 4.93 percent to 5.25 percent.
And a bullish comment from Bank of America provided new impetus for the retailer. Last week, JD posted lower annual profits as it complained about “a very challenging market.”
Shares fell 5 per cent after Friday’s update, but rose 5.1 per cent, or 6.45p, to 133.95p yesterday.
AstraZeneca’s drug Tagrisso, which is used in addition to chemotherapy, is recommended in the European Union for the treatment of adult patients with an aggressive form of lung cancer. Shares rose 1.3 percent, or 156p, to 12346p.