London’s FTSE 100 traded 0.4% lower at 6,747.46 early on Wednesday, despite the release of stronger-than-expected local economic data.

Rising bond yields, and what they say about inflation and interest rate risks, had put US and Asian stocks under some modest pressure and the weak sentiment extended to Europe.

UK gross domestic product grew by a relatively modest 1.3% in the fourth quarter of 2020, according to a ‘final’ reading from the Office for National Statistics that was upwardly revised from 1% previously.

DELIVEROO’S HORRID DEBUT

In corporate news, food delivery app Deliveroo (ROO) skidded 22% lower to 304p in a horrible main market debut, having priced its IPO at a bottom-of-the-range 390p for a starting market cap of £7.59 billion.

Though the early price action proved disappointing, founder and CEO Will Shu is ‘very proud that Deliveroo is going public in London - our home’ and aims ‘to build the definitive online food company’.

FULLER’S LACKS FIZZ

Elsewhere, pubs and hotels business Fuller, Smith & Turner (FSTA) dropped 2.3% to 849.9p after it launched a £53.6 million equity raising as it eyes a reopening of its sites next month.

New shares in Fuller, Smith & Turner are being offered at 830p, a 4.6% discount to yesterday’s closing price.

Russia-focused gold miner Petropavlovsk (POG) edged up 0.1% to 24.13p early on as it forecast a fall in annual production and said it was undertaking a sweeping review of its business to cut costs.

And logistics group Wincanton (WIN) accelerated 3.5% to 384p on the news full-year results are expected to be above market expectations with underlying revenue on track to rise by 15% higher in the fourth quarter.

IN OTHER NEWS

Specialist retailer Topps Tiles (TPT) cheapened 2.6% to 67.2p on news of a 17.3% decline in second quarter like-for-like sales caused by the third national lockdown, although this followed a very strong first quarter in which like-for-like sales shot up by 19.9%.

Video game developer Sumo (SUMO:AIM) softened 2% to 355p as it booked a fall in annual profit due to various expenses, including acquisition costs and share-based payments to executives.

However, Sumo’s adjusted gross profit rose 26% on a 41% jump in sales amid a surge in demand during lockdowns.

Exchange services group Aquis Exchange (AQX:AIM) advanced 2.6% to 585p as investors applauded a maiden annual profit as revenue surged thanks to very strong growth from higher trading levels in the equities trading division.

Direct-to-consumer ready meals provider Parsley Box (MEAL:AIM) declined 7.5% to 185p in debut AIM dealings, having priced its IPO at 200p for a starting market tag of around £84 million.

And alternative broadband services provider Bigblu Broadband (BBB:AIM) fell 2.3% to 105p after it swung to a loss as higher costs offset a modest climb in revenue.

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Issue Date: 31 Mar 2021