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Miners, Energy Firms Drag FTSE 100 Lower; Dr Martens Hits Record Low

  • FTSE 100 sheds 0.6%, FTSE 250 off 1.0%
  • Deliveroo achieves breakeven in second half
  • Boohoo's Christmas revenue drops 11%
  • Dr Martens sinks to FTSE 250 bottom on annual profit warning

Jan 19 (Reuters) - UK's commodity-heavy FTSE 100 fell on Thursday, with energy firms and material stocks dragging the benchmark index lower, while shares of bootmaker Dr Martens slumped to a record low after its annual profit warning.

The FTSE 100 slid 0.6%, while the domestically-oriented FTSE 250 shed 1.0%.

Energy heavyweights Shell and BP fell below 1.7%, while industrial miners shed 1.8% as crude and copper prices declined after disappointing U.S. economic data and on worries about a hawkish Federal Reserve.

Dr Martens sank 23.6%, after it warned of a lower annual profit and revenue due to operational issues at its new U.S. distribution centre. The stock dragged the personal goods sector down 4.1%.

"U.S. sales... is viewed as a key market for growth for the company," said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.

"(Operational issues) have forced (Dr Martens)to take on new space and an extra shift of staff to sort out the problems which will also push up costs."

The blue-chip and mid-cap indexes had been enjoying a string of gains during the first two weeks of 2023, but saw their first three-day losing streak this week as company earnings and economic data for the last quarter rolled in.

Though economic conditions in the previous quarter seemed better than expected for businesses and the household, double-digit inflation and a tight labour market failed to ease fears of further monetary tightening and a consequent recession.

Among other stocks, Boohoo dropped 5.6% on a 11% fall in the online fashion retailer's revenue during its Christmas trading period, hurt by delivery disruption and tough comparatives.

Deliveroo advanced 0.8% after the meal delivery company achieved breakeven in earnings during the second half of 2022.

Meanwhile, data showed UK house prices fell more than expected in December and hit their lowest since October 2010 as inflation and rising interest rates squeezed home-buyers.

Reporting by Johann M Cherian in Bengaluru; Editing by Savio D'Souza and Shailesh Kuber

Source: Reuters

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