MARKET REPORT: UK blue chips set to end the year on a dismal note
It looks like the stock markets will end the year with a whimper rather than a bang.
On London’s last full trading day of 2024 (the exchange closes at 12.30pm today), the FTSE 100 fell 0.35 per cent, or 28.77, to 8,121.01, while the FTSE 250 fell 0.41 per cent, or 84. 10, closed at 20,404.55.
The Footsie has now lost more than 2 percent this month and 5 percent since its peak in May. But the price continues to rise about 5 percent this year and has not fallen below 8,000 points since April.
Despite the recent declines, US indices are expected to end the year with their biggest gains since 1997, driven by technology stocks, particularly those related to artificial intelligence (AI), such as chip maker Nvidia.
But analysts have noted a likely rotation of high-flying players in the new year, believing expectations have likely become too high for AI-related companies to meet.
Nevertheless, technology investors are always looking for the next big thing, and there’s talk that quantum computing could be it.
On the slide: The Footsie has now lost more than 2% this month and 4% since its May peak. But the price continues to rise about 5% this year and has not fallen below 8,000 points since April
Google said in early December that it had made significant progress in quantum computing with its new Willow chip, which could have solved in five minutes complex problems that would take current supercomputers an estimated 10 septillion years to solve.
One problem is that the technology is not yet ready to be widely commercialized, meaning there could be a slowdown in the technology sector’s progress.
That slowdown was on display in London with Alteration Earth’s lackluster market debut on AIM as a small-cap AI play.
The formerly premier publicly traded shell company recently completed the acquisition of Pri0r1ty AI, which provides AI-powered Software-as-a-Service solutions to small and medium-sized businesses, and plans to change its name to Pri0r1ty Intelligence Group.
Alteration Earth has raised £900,000 in a placement priced at 13.5 per share, giving it an initial market capitalization of £13 million. But after opening at a premium, it ended at 10.75 pence.
One of London’s top performers in 2024, Rolls-Royce, was among the fallers of the FTSE 100, losing 1.3 percent (7.6 cents) to close at 570.4 percent. aircraft manufacturer Boeing and its suppliers.
All the company news at the end of the year came from the small caps. SDX Energy rose 28.6 percent, or 0.1 cent, to 0.45 cent, after postponing today’s meeting in London due to a “logistics issue.” The meeting was convened to approve the removal of the oil roach from the AIM list.
Ondine Biomedical rose 5.9 percent, or 0.5 cents, to 9 cents after it said it treated the first patient in the phase three clinical trial evaluating its non-antibiotic nasal photodisinfection technology.
And Cel AI rose 41.7 percent, or 0.03 cents, to 0.09 cents as the company, which exited skincare to focus on cryptocurrency, said it looked forward to growth in performance in the coming year , after reporting a tightening in the previous year. tax losses.
But NARF Industries lost 8.4 percent, or 0.05 cents, to 0.55 cents, after the cybersecurity company reported a decline in half-year profit as it grappled with temporary delays in the US government budget.
Stock Watch – Arecor Therapeutics
Arecor Therapeutics, which deals with diabetes and other conditions, rose 6.5 percent (4.5 cents) to 74 cents after unveiling an exclusive global licensing deal for a ready-to-use liquid formulation of a widely used intensive care drug therapy.
The deal for AT351, which uses Arecor’s platform, Arestat, has been struck with one of the world’s largest independent chemical marketing companies – as yet unnamed.
Arecor will receive an undisclosed upfront payment and benefit from royalties on worldwide sales.
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