08.01.202608:27:15UTC+00FTSE 100 Falls for 2nd Session, AB Foods Tumble 11%

On Thursday, the FTSE 100 continued its downward trend following a 0.7% decrease from the previous day, as disappointing corporate updates adversely impacted market sentiment. Shares of Associated British Foods plummeted over 10% after the company announced a profit warning, dragging the stock to its lowest point since April. This cautionary statement was largely attributed to difficulties faced by Primark, which experienced a challenging Christmas due to a sluggish UK clothing market, reduced sales in continental Europe, and an unstable retail environment in the US. The necessity to increase markdowns to clear surplus inventory, coupled with slower sales growth, is anticipated to exert pressure on margins. Additionally, the company’s grocery and ingredients segments reported results that fell short of expectations. On a related note, Tesco shares declined by approximately 5% after its UK like-for-like sales growth slightly missed projections, despite robust Christmas sales and an optimistic profit outlook. Furthermore, data from Halifax indicated that UK house prices dropped by 0.6% in December, following a 0.1% decrease in November.