UK shares lost the most in two weeks as ARM Holdings Plc pulled technology firms lower after a stock sell off in the US.
ARM, which designs microchips for Apple devices, plunged 2.2% as investors sold off highly value stocks. Burberry Group Plc tumbled 1.7%. The largest producer of luxury goods in the UK had its ratings cut by Berenberg Bank.
The FTSE 100 Index was down at 6,647.19 as of 11:44 am in London, after losing 48.36 points or 0.7%. The broader FTSE that gauges more UK stocks dropped 0.7% as Ireland’s ISEQ plunged 0.5%.
Chief investment strategist at London-based Beaufort Securities Ltd, Mike Franklin, told Bloomberg that the US equity sell off had trickled down to other stock markets.
“People have got a bit twitchy and they’re starting to feel some of these valuations have gone into la la land. “There are very high ratings on very slim earnings in some cases and the markets are feeling nervous about that,” Franklin said.
The UK stock market’s traded shares for the day were 25% less than the 30-day average in volume. UK shares had surged for three straight weeks as global trade remained unperturbed even after Russia annexed Crimea.
ARM stocks lost 2.2% to trade at 974 pence a share. Online grocery shop Ocado Group Plc plunged 3.4% to 436.7 pence.
Burberry went down 1.7% to 1,409 pence. The firm’s stock was downgraded to hold from buy by Berenberg.
API Group Plc sunk 9.5% to 65 pence after it announced that its revenue for the year ended in March will only hit the lowest of its estimates. The manufacturer of packaging materials is expected to announce its financial results in June.
Home builder Barratt Developments PLC lost 3.4% as Hargreaves Lansdown PLC plunged 2.6%.
As Marketwatch reports UK shares had closed higher on Friday, to keep FTSE gains standing for the third straight week.
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