FTSE 100 Hits Three-Month Low Amid Construction Woes and China Concerns
The UK's FTSE 100 hit a three-month low, impacted by profit warnings from homebuilder Vistry and unsatisfactory stimulus from China, affecting investor sentiment. The index saw its sharpest weekly decline, with Vistry's shares plummeting nearly 19%. Concerns over China's economic growth further affected market performance.
The UK's FTSE 100 dropped to its lowest level in three months on Friday following a gloomy profit warning from the homebuilder Vistry. The lackluster economic measures introduced by China also contributed to the investor unease. The blue-chip index fell by 0.8%, marking a significant downturn since August 8, and is poised for a third consecutive weekly decline.
Vistry's shares were in freefall, plummeting by nearly 19%—the sharpest decline among all FTSE 100 components. This comes after a second profit warning within a month, driven by sustained cost pressures, particularly in its South Division. AJ Bell investment director Russ Mould noted that the company must work diligently to regain market confidence amidst rising build cost inflation.
In addition, stocks tied to China's market, like Burberry and major mining companies Antofagasta, Rio Tinto, and Glencore, experienced losses. Despite China's recent debt relief package for local governments, the measures didn't convince investors hoping for a more robust fiscal intervention to boost the economy.
(With inputs from agencies.)