UK stocks closed lower on Friday as fresh lockdowns and rising virus cases dampened hopes of a swift economic recovery.
Also dampening sentiment was disappointing December retail sales data in the US with the core figure coming in at -1.4% compared with -0.1% expected.
US markets opened weaker as a result with the Russell 2000 losing 1.5% and the S&P 500 0.5% weaker. US bank Wells Fargo reported disappointing results dragging down the banking sector.
At 4.30pm the benchmark FTSE 100 was 1% lower at 6,733 points while mid-caps were also down, the FTSE 250 falling 0.8% to 20,615.
Contractor Babcock International (BAB) was one of the big losers on Friday, tumbling 17% to 218p after it dropped a bomb on the market by saying profits so far this financial year were down over a third. Its civil aviation arm had been inevitably hit hard by Covid.
Babcock was only beaten to top spot on the FTSE All-Share loser board by oil services group Petrofac (PFC) following fresh fraud charges were brought against employees, although not the company. Petrofac stock crashed 26% to 122.5p.
Engineering software company Aveva (AVV) topped the FTSE 100 leader board after it reported a strong end to the trading year. The stock jumped 7% to £38.1.
Pharmaceutical company Indivior (INDV) rallied 10% to 115.4p after it lifted its outlook on profit on expectations for higher revenue from drugs to treat opioid dependence.
The company said it now expected to deliver adjusted pre-tax income ahead of its previous expectations. Revenue was now expected to be in the range of $645 million to $650 million, compared with previous guidance of $595 million to $620 million.
ELSEWHERE ON THE MARKET
Tobacco giant British American Tobacco (BATS) said the Serious Fraud Office had ended its probe into suspicions of corruption activity carried out by the company. The shares gave up 0.4% to £27.7.
The SFO would not be taking no further action, and the company said it was pleased the investigation, launched on 1 August 2017, had been discounted.
Engineering business Meggitt (MGGT) said it expects to deliver full year results for the group in line with guidance and that with the vaccine rollout it remains well placed for a recovery in 2021.
The UK supplier of aerospace, defence and energy markets said it expects underlying operating profit to be in the middle of the £180 million to £200 million range for the full year 2020, subject to audit, giving its share price a 1.2% lift 432.7p.
Pharmaceutical giant AstraZeneca (AZN) gained 0.2% to £75.7 after it said its non-small cell lung cancer drug Imfinzi had been approved in the European Union and the UK for an additional dosing option.
Property group Segro (SGRO) said it had collected 98% of all rents for the year ending 31 December 2020. As at 14 January, the company had received 88% of the £63 million of rent due in respect of UK rents payable in advance for the first quarter of 2021. The shares climbed dipped 0.7% to 959.8p.
Shopping centre owner Hammerson (HMSO) said that James Lenton would step down as chief financial officer, unsettling investors and sending the stock 2.9% lower to 22.6p.
The Renewables Infrastructure Group (TRIG) said it has exchanged contracts to acquire an equity interest of 17.5% in the Beatrice offshore wind farm from Copenhagen Infrastructure Partners. The shares fell 0.3% to 125.8p.
Insurance company Hiscox (HSX) saw its shares initially fall up to 6% on news that the Supreme court had ruled in favour of the FCA and policy holders saying that insurers had to pay out for business interruption insurance.
The shares recovered the losses to trade up 3.5% to £10 after the company made a statement saying fewer than a third of its policy holders were affected by the ruling.