The FTSE 100 languished in the red on Monday as the index dropped 1.9% to 7,240.5, its lowest point since mid-March in light of Beijing’s continued lockdown and market concerns about the Federal Reserve’s next moves on interest rates.
Russia’s military display in Moscow to celebrate the Soviet victory against Germany in the second world war also served to shake up investor confidence, with the event providing a stark reminder of the ongoing geopolitical conflict in Ukraine.
Commodities and Rightmove drag the FTSE lower
Rightmove shares plummeted 5.1% to 530.1p following the group’s announcement that CEO Andrew Brooks-Johnson was set to step down from the company in February 2023.
Brooks-Johnson will be leaving the property firm after 16 years, however Rightmove has confirmed that he will stay on until his replacement has been found and a smooth handover has been facilitated.
“I have thoroughly enjoyed my journey at Rightmove, working with a hugely talented team who have taught me an immeasurable amount,” said Brooks-Johnson.
“Rightmove is an amazing company, with a clear focus and a relentless energy to innovate, which it has been a privilege to serve. I’d also like to thank our customers for their support and loyalty over the past 16 years.”
Commodities groups dropped into the red, including Glencore with a 5% fall to 463.2p, Croda with a 4.8% drop to 66.9p, Anglo American declining 6.7% to 3,324p and Antofagasta sliding 4.8% to 1,387p as a result of Chinese lockdowns spurring fears of declining consumption and a dip in commodities prices.
Spot gold fell 0.6% to $1,871 per ounce, with silver falling 0.5% to $22 per ounce, and copper and aluminium prices dropping 0.6% to $9,354 and $2,826, respectively.
Share Buybacks
However, the FTSE 100 is gearing up for record levels of share buybacks, with BP’s scheduled $2.5 billion share repurchase plan for Q2 2022 anchoring the index record alongside Next and Endeavor preparing for massive buyback schemes.
The FTSE 100 is set to see a collective £37 million in buybacks in 2022, surpassing the previous record of £34.9 billion in 2018.
“The debate over BP’s bumper profits and the rights and wrongs of a windfall tax looks set to continue but the facts of the matter are that the oil major’s latest plans to return cash to its investors mean the FTSE 100’s members are poised to set a new all-time record for share buybacks in 2022,” said AJ Bell investment director Russ Mould.
“That may provide some succour to patient investors who are looking at a broadly flat capital return from the FTSE 100 in the year to date. This is the second-best performance among major indices in the world in 2022 so far, trailing on Brazil’s modest gains, in local currency terms.”
