Bunzl came away with one of the biggest losses among London’s blue-chip companies this morning as the world’s biggest distributor of everyday workplace products unnerved the market with its cautious outlook for the year ahead.
The FTSE 100 company warned that its operating margins this year would be lower than in 2023 and underlying revenue would decline slightly after a slower-than-expected start to the year in North America, its largest market for sales.
Shares in the company, which distributes products ranging from lavatory paper and safety gloves to cleaning products and helmets, fell 158p, or 4.8 per cent, to a two-month low of £31.48.
Ocado was another big faller, down 29p, or 5.5 per cent, to 499½p as investors grew nervous before the release of the online retailer and technology company’s full-year results on Thursday.
The competition regulator’s decision to investigate eight of Britain’s biggest housebuilders amid concerns that they were “sharing commercially sensitive information” that could limit the supply of new homes and keep prices high, knocked confidence in the sector. Persimmon and Taylor Wimpey, both of which are under investigation, fell 52p, or 3.7 per cent, to £13.60½ and 5¾p, or 3.8 per cent, to 140½p, respectively.
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All this weighed on the FTSE 100, which gave up 25 points, or 0.3 per cent, to 7,681.48.
The more UK-focused FTSE 250 was also down, losing 65 points, or 0.3 per cent, to 19.114 on the approach to midday. Watches of Switzerland suffered one of the largest falls in the mid-caps, declining 15¼p, or 3.6 per cent, to 410½p after a report in The Times that the controversial “tourist tax” is unlikely to be scrapped in next week’s budget placed luxury stocks under pressure.
Standard Chartered, which unveiled a $1 billion share buyback and fresh cost-cutting drive on Friday, was among the stock helping cap losses on the top tier index, extending gains by a further 17½p, or 2.7 per cent, to 652½p. International Consolidated Airlines, the British Airways owner, picked up 3p, or 1.8 per cent, to 155¾p as investors geared up for final results on Thursday.
