London close: Stocks finish 2024's last full session weaker

(Sharecast News) - UK stocks closed slightly lower in subdued trading on Monday, with market activity reflecting the final full session of 2024 amid a lack of significant corporate news or economic developments. The FTSE 100 index slipped 0.35% to close at 8,121.01 points, while the FTSE 250 dropped 0.41% to 20,404.55 points.

In currency markets, sterling was last down 0.37% on the dollar to trade at $1.2531, as it edged down 0.03% against the euro, changing hands at €1.2060.

"The FTSE 100, up 5.5% year-to-date, appears on course to end the year in positive territory," noted Hargreaves Lansdown senior equity researcher Matt Britzman.

"But, yet again, UK performance pales in comparison to returns seen in tech-dominated markets across the pond.

"US stock futures dipped on Monday as Wall Street gears up for the final trading week of the year, with 2024's gains pretty much in the bag."

Britzman noted that the "surging" S&P 500 and Nasdaq underscored the market's tech-fuelled triumph, although Friday's sell-off, triggered by climbing Treasury yields, was a "sobering reminder" of lingering interest rate concerns.

"Adding to the mix, Treasury secretary [Janet] Yellen's debt ceiling warning and upcoming economic data may keep traders on edge as the year comes to an end."

Mixed manufacturing data emerges in Asia

Monday saw a quiet start to the week in economic data, with no major releases from this side of the Atlantic.

However, updates from Asia offered contrasting views on the state of manufacturing in key economies.

Japan's manufacturing sector showed signs of easing contraction in December, hinting at potential stabilization after a prolonged downturn.

The final au Jibun Bank Japan manufacturing purchasing managers' index (PMI) rose to 49.6, its highest level in three months and just above the preliminary estimate of 49.5.

While still below the 50-point threshold separating contraction from growth, the improvement from November's 49.0 was attributed to slower declines in production and new orders.

Subdued demand, particularly in the semiconductor sector, continued to weigh on orders, which fell for the 19th consecutive month.

Nonetheless, manufacturers expressed optimism for the future, driven by plans for new product launches and ramped-up hiring to address labor shortages.

Rising raw material and labour costs, alongside a weaker yen, pushed input prices higher, leading to the sharpest increase in output prices in five months.

In contrast, South Korea's manufacturing output contracted more sharply than expected in November, highlighting economic pressures from slowing exports and declining business confidence.

Industrial output fell 0.7% month-on-month, worse than the 0.4% drop anticipated by economists.

On an annual basis, growth slowed to just 0.1%, a stark decline from October's 6.3% rise.

The downturn was driven by weakening demand in key export markets, with shipments to the US and China declining amid ongoing trade uncertainties.

Business sentiment dropped to its lowest level in over four years.

Travel plays in the green, precious metals miners fall

On London's equity markets, travel and accommodation stocks were among the top performers on the main market.

British Airways and Iberia owner IAG saw gains alongside Premier Inn parent Whitbread and PPHE Hotel Group.

Among AIM-listed risers, Huddled Group climbed 3.73% after announcing it had acquired the remaining 25% stake in cosmetic waste reseller Boop Beauty for £0.1m.

The acquisition was being funded by the issue of 3.2 million new shares.

Helix Exploration rose 2.78% after disclosing plans to acquire a helium processing plant as part of its strategy to expand within the Montana Helium Fairway.

The $0.5m acquisition, with a $0.1m initial payment, marked a critical step toward Helix becoming a leading helium producer.

Duke Capital advanced 2% following a trading update that highlighted record recurring cash revenue of £6.5m for the third quarter, up 4% year-on-year.

On the downside, precious metals miners were under pressure, with Fresnillo down 2.3% and Hochschild Mining losing 3.04%.

Thruvision Group fell 7.5% after announcing that chief financial officer Victoria Balchin would succeed Colin Evans as chief executive starting 2 January.

The company framed the internal promotion as a stabilising move after recent leadership changes.

Proton Motor Power Systems plunged 18.46% after announcing plans to delist from AIM to cut costs and settle outstanding creditor obligations.

The zero-carbon fuel cell developer said its cost structure was incompatible with maintaining a public listing, a decision following a prior update in November.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,121.01 -0.35% FTSE 250 (MCX) 20,404.55 -0.41% techMARK (TASX) 4,591.47 -0.41%

FTSE 250 - Risers

Diversified Energy Company (DEC) 1,335.00p 5.28% Wood Group (John) (WG.) 64.75p 2.21% Bank of Georgia Group (BGEO) 4,695.00p 2.07% PPHE Hotel Group Ltd (PPH) 1,395.00p 1.82% TBC Bank Group (TBCG) 3,110.00p 1.80% Chrysalis Investments Limited NPV (CHRY) 107.00p 1.71% SThree (STEM) 281.50p 1.62% Vietnam Enterprise Investments (DI) (VEIL) 604.00p 1.51% Domino's Pizza Group (DOM) 311.40p 1.24% VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 461.00p 1.10%

FTSE 250 - Fallers

Ferrexpo (FXPO) 102.80p -9.03% Ocado Group (OCDO) 294.20p -3.13% Hochschild Mining (HOC) 207.00p -3.04% Raspberry PI Holdings (RPI) 621.00p -2.97% CMC Markets (CMCX) 247.50p -2.94% Dr. Martens (DOCS) 71.35p -2.73% Indivior (INDV) 968.50p -2.71% Bridgepoint Group (Reg S) (BPT) 349.20p -2.51% Apax Global Alpha Limited (APAX) 139.00p -2.39% Pennon Group (PNN) 582.50p -2.35%