UK stock markets lag despite Rightmove shares soaring on bid interest

The blue chip index was down 12.79 points, or 0.15%, to close at 8,363.84 on Monday.

Anna Wise
Monday 02 September 2024 12:27 EDT
The FTSE 100 closed down 12.79 points at 8,363.84 on Monday (PA)
The FTSE 100 closed down 12.79 points at 8,363.84 on Monday (PA) (PA Archive)

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UK stock markets have started the month on the back foot, with a spike in Rightmove shares failing to lift the FTSE 100 into positive territory.

The blue chip index was down 12.79 points, or 0.15%, to close at 8,363.84 on Monday.

The dip was despite shares in property portal Rightmove soaring by a quarter during the day after it emerged that Australia’s REA Group was considering making an offer for the firm.

REA Group said there was a “transformational opportunity” to combine with Rightmove, which had a market value of about £4.4 billion at the end of last week.

The prospect of a takeover appeared to be good news for investors who piled cash into Rightmove stocks, with its share price closing 27.4% higher.

Nevertheless, the FTSE was weighed down by firms including Rolls-Royce, which was down by 6%.

It was a slightly stronger session for other top European stock markets. Germany’s Dax edged up 0.09% while France’s Cac 40 closed 0.2% higher.

Over in the US, markets were closed for Labour Day.

Oil prices ticked higher, with Brent crude oil up about 0.1% to 77 US dollars per barrel.

The pound was up about 0.1% against the US dollar at 1.3145, and down 0.05% against the euro at 1.188.

In other company news, shares in Ashtead Technology dropped by more than a 10th despite the company, which rents specialist equipment for offshore energy production, cheering a “record” financial performance over the first half of the year.

The firm reported a 61% increase in revenues and 55% uplift in gross profit compared with the same period last year.

It also said it was eyeing more merger and acquisition activity and that its full-year outlook was unchanged. Nevertheless, shares closed 12.8% lower.

Meanwhile, car dealership group Vertu Motors cautioned that its half-year profits would come in lower than previously expected as demand for new cars and electric vehicles remains under pressure across the market.

However, it expects its financial performance to improve over the second half of the year thanks to the strength of the second-hand car market. Shares in Vertu closed 3.4% lower.

The biggest risers on the FTSE 100 were Rightmove, up 152.4p to 708p, Barratt Developments, up 15.8p to 523p, Auto Trader, up 26p to 877p, Beazley, up 15p to 765p, and Vodafone, up 1.2p to 75.62p.

The biggest fallers on the FTSE 100 were Rolls-Royce, down 32.1p to 464.3p, BAE Systems, down 38.5p to 1,324.5p, JD Sports, down 3.1p to 134.85p, Endeavour Mining, down 28p to 1,586p, and B&M European, down 7.5p to 437.5p.

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