MARKET REPORT: British blue chips set to finish the yr on a whimper

Stock markets look set to end the year with a whimper rather than a bang. 

On London’s last full day of trading of 2024 (the exchange closes at 12.30pm today) the FTSE 100 was down 0.35 per cent, or 28.77, at 8,121.01 while the FTSE 250 closed down 0.41 per cent, or 84.10, at 20,404.55.

The Footsie has now shed more than 2 per cent this month and 5 per cent since its peak in May. But it remains up about 5 per cent this year and has not closed below the 8,000 mark since April.

Despite recent falls, US indexes are set to end the year with their biggest gains since 1997 propelled by tech stocks, notably those related to artificial intelligence (AI), such as chip firm Nvidia.

But analysts have flagged up a likely rotation from high-flying players in the new year, believing expectations have probably gotten too high for AI-related firms to satisfy. 

Nonetheless tech investors are always looking out for the next big thing, and talk is that quantum computing could be it.

On the slide: The Footsie has now shed more than 2% this month and 4% since its peak in May. But it remains up about 5% this year and has not closed below the 8,000 mark since April

Google said in early December that it had made significant progress in quantum computing with its new Willow chip, which had been able to solve in five minutes complex problems that would take current supercomputers an estimated 10 septillion years.

One issue is the technology is not ready to be broadly commercialised, meaning there could be a lag in the tech sector’s advance. 

That lag could be seen in London with the lacklustre market debut on AIM of Alteration Earth as a small-cap AI play. 

The previously main market-listed shell company recently completed the acquisition of Pri0r1ty AI, which provides AI-powered Software-as-a-Service solutions to small- and medium-sized companies, and it intends to change its name to Pri0r1ty Intelligence Group.

Alteration Earth raised £900,000 in a placing priced at 13.5p a share, giving it an initial market cap of £13million. But having opened at a premium, it ended at 10.75p.

One of London’s top performers in 2024, Rolls-Royce, was among the FTSE 100 fallers, losing 1.3 per cent, or 7.6p, to close at 570.4p amid concern the recent passenger jet crash in South Korea could lead to further problems for US plane maker Boeing and its suppliers.

All the end-of-year corporate news came from the small caps. SDX Energy leapt 28.6 per cent, or 0.1p, to 0.45p after it postponed today’s London meeting due to a ‘logistical issue’. The meeting was called to approve the oil minnow’s delisting from AIM.

Ondine Biomedical leapt 5.9 per cent, or 0.5p, to 9p after it said it had treated the first patient in the phase three clinical trial evaluating its non-antibiotic nasal photodisinfection technology.

And Cel AI was up 41.7 per cent, or 0.03p, at 0.09p as the firm, which exited skincare to focus on cryptocurrency, said it looked forward to growth in performance in the year ahead after reporting a narrowing in full-year pre-tax losses.

But NARF Industries shed 8.4 per cent, or 0.05p, to 0.55p as the cybersecurity firm reported a decline in half-year earnings as it grappled with temporary US government budget delays.

Stock Watch –  Arecor Therapeutics

Arecor Therapeutics, which deals with diabetes and other conditions, rose 6.5 per cent, or 4.5p, to 74p after it revealed an exclusive global licensing deal for a ready-to-dilute liquid formulation of a widely used critical care therapy. 

The deal for AT351, which uses Arecor’s platform, Arestat, is with one of the world’s largest independent chemicals marketing firms – as yet unnamed. 

Arecor will receive an undisclosed upfront payment and stands to gain from royalties on global sales.