Awful day for Ocado drags FTSE 100 into the red

London’s FTSE 100 today was dragged down by investors souring on middle-class favourite and online supermarket Ocado.

The capital’s premier index fell 0.21 per cent to 7,369.44 points, while the domestically-focused mid-cap FTSE 250 index dropped 0.85 per cent to 19,455.88 points.

Ocado’s shares plummeted to the bottom of the FTSE 100 today, taking the index down with it, eventually finishing nearly 17 per cent lower.

It marks the end of a recent short-term boost to the firm’s shares after it announced it is entering the Asian market via a tie up with fellow supermarket Lotte.

FTSE 100 edged lower today

“The recent rally of Ocado shares also appears to have come to a shuddering halt today. The shares have surged in recent days after the Lotte deal was announced, so a pullback was long overdue, given that over 20% rise we’ve seen so far this month,” Michael Hewson, chief market analyst at CMC Markets UK, said.

Telecoms giant and FTSE 100 listed Vodafone also took a tumble today after it slashed its full year performance forecasts.

The firm also warned of contract price rises, sparking fears among investors that consumers should shun its products amid high inflation.

Its shares closed 7.94 per cent lower, placing it second bottom of the premier index.

On the FTSE 250, online fashion retailer ASOS finished 4.67 per cent into the red, while furniture retailer Dunelm lost a shade over four per cent.

The pound recovered to its highest level against the US dollar in three months. UK borrowing costs edged lower.