Aggreko sinks on profit warning as Vodafone is hit by high 4G pricing
BIG falls by temporary power firm Aggreko and market heavyweight Vodafone weighed on Britain’s top shares yesterday as the final full trading week of 2012 got off to a lacklustre start.
Aggreko was the biggest percentage blue chip faller, dropping 22 per cent after the firm issued its second profit warning in two months, saying there would be less need next year for its generators.
“Aggreko shares now trade just above 52-week lows, crossing beneath its 200-DMA (day moving average) without any major support as investors remain bearish on the stock,” Rik Thakrar, risk manager and senior dealer at Spread Co. said.
“The dealing floor has noted a flurry of short selling activity in the stock, with traders viewing current lower levels as a consolidation point ahead of further falls throughout early 2013,” Thakrar added.
Volume in Aggreko shares was the biggest on the blue chip board at over nine times its 90-day daily average.
Overall FTSE 100 volume was relatively thin at about three-quarters of the already low 90-day daily average as the festive lull approached. Volume was also strong in Vodafone, at 160 per cent of its daily average, as the mobile phone firm’s stock shed 1.7 per cent, accounting for over five points, or around half of the FTSE 100 index’s total decline. Vodafone suffered after the Dutch state raised much more than expected in its auction of fourth generation (4G) frequencies, pointing to higher costs for operators.
In London, the FTSE 100 closed down 9.61 points or 0.2 per cent at 5,912.15, albeit bouncing off session lows below 5,900.