MARKET REPORT: Burberry hits 14-year low after Footsie exit
Burberry shares hit a 14-year low just days after the luxury fashion company was dropped from the FTSE 100.
In another bleak day for investors, the company’s share price fell 5.2 percent, or 33p, to 604.4p yesterday, its lowest level since May 2010.
The latest quarterly turnaround on the stock market this week saw Burberry replaced in the blue-chip index by Lloyd’s of London insurer Hiscox (down 1.4 percent or 16p to 1,165p), equating to £4 billion.
The luxury fashion group’s value has plummeted this year as shoppers spent less on expensive trench coats, while weaker demand from China hurt sales across the sector.
Burberry also issued a profits warning this summer, scrapped its dividend and fired its CEO Jonathan Akeroyd.
Falling from grace: In another gloomy day for investors, Burberry shares fell 5.2 percent to 604.4p, their lowest level since May 2010
Shares have more than halved in value this year, losing 14 per cent in the past fortnight. Burberry, now worth £2.2bn, is a long way from when its stock peaked at almost 2,650p in April last year.
Analysts at AJ Bell said earlier this week that Burberry is vulnerable to a takeover due to the sharp fall in its share price.
On the broader market, the FTSE 100 lost 0.7 percent or 60.24 points to 8,181.47 and the FTSE 250 fell 1.3 percent or 268.5 points to 20,494.
GSK reported positive results from the latest study of the effectiveness of its drug Nucala in treating patients with a common lung disease.
Chronic Obstructive Pulmonary Disease (COPD), which causes shortness of breath and severe coughing, affects more than 300 million people worldwide. Shares in the pharmaceutical giant rose slightly by 0.8 percent, or 12.5p, to 1,651.5p.
Vistry reported its earnings a day after the company said it was on track to build more than 18,000 homes and said annual profit should be higher than last year.
The Bovis Homes owner also announced plans to launch a £130m share buyback programme this month.
The shares, which rose 8.5 percent on Thursday, fell 6.3 percent, or 90p, to 1,340p.
Digital 9 Infrastructure has warned of a fall in its valuation on a revised forecast of how much cash is available at the companies it invests in. The data centre and wireless investment firm expects to report its net asset value stood at 45p per share at the end of June, down from 79.3p six months ago.
The company, which sold its crown jewel Verne Global to French fund Ardian for £450m in March, is also looking to sell a number of assets apart from network provider Arqiva. Shares fell 10.2 per cent, or 2.1p, to 18.5p.
Oil and gas minnow Zephyr Energy reported positive production results from its Utah well in the US. Shares rose 10.5 percent, or 0.4p, to 4.2p.
Large-scale battery specialist Invinity suffered heavy losses after it warned that a delay in the rollout of a new product and deal-making would hit earnings this year. The guidance came after Invinity said CEO Larry Zulch had stepped down after four years. Shares fell 42.3 percent, or 8.25p, to 11.25p.
DIY INVESTMENT PLATFORMS
AJ-Bel
AJ-Bel
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free Fund Trading and Investment Ideas
interactive investor
interactive investor
Fixed investment costs from £4.99 per month
Saxo
Saxo
Get £200 back on trading fees
Trading 212
Trading 212
Free trading and no account fees
Affiliate links: If you purchase a product, This is Money may earn a commission. These deals are chosen by our editorial team because we think they are worth highlighting. This does not affect our editorial independence.