MARKET REPORT: Alphawave IP shares plunge after tech group falls into the red
The nightmare continues for the technology group alpha wave ip.
Shares in the Canadian company, which traded on the London Stock Exchange at 410 pence in May 2021, fell another 12.2 per cent, or 18 pence, to 129 pence after another gloomy update.
The company, which designs technology that helps data travel faster, posted an operating loss of £2.1m in the first half of the year, after making a profit of £24.5m in the year. same period last year.
Alphawave shares plunged after the technology group posted a £2.1m operating loss.
However, revenues rose 228 per cent to £153m and the company insisted the outlook for the year remained unchanged and improved profitability was “expected” in the second half of the year.
But it was not enough to avoid another sharp sell-off.
Investor confidence in Alphawave has been hit hard since its IPO and the stock was suspended in May when KPMG asked for more time to audit its results. When the figures were published it emerged that profits were almost £6m lower than previously reported. The head of finance, Daniel Aharoni, resigned. Stock markets across Europe started the week on the defensive and London was no exception.
The FTSE 100 fell 0.8 per cent, or 59.92 points, to 7,623.99 and the FTSE 250 fell 1 per cent, or 191.53 points, to 18,415.31.
Sentiment was hurt by continued concerns about the outlook for interest rates in the United States, the world’s largest economy, and problems in the Chinese property market.
Investors believe that while interest rates may have peaked in the United States, the Federal Reserve has no intention of making significant cuts anytime soon, with the new mantra being “higher for longer.”
At the same time, the stocks of troubled companies
Chinese giant Evergrande, the world’s most indebted property developer, plunged as much as 24% after revealing it could not issue new debt.
Mining stocks were among those to fall in London amid fears of weak demand from China: Anglo American lost 1.3 per cent, or 29.5 pence, to 2,218.5 pence, Rio Tinto fell 1.9 per cent, or 98 pence, to 5,085 pence and Antofagasta lost 2.1 per cent. or 29.5p, to 1392.5p. Burberry (down 4.5 per cent, or 90.5 pence, to 1,914.5 pence) and Prudential (down 2.7 per cent, or 24.4 pence, to 876.8 pence), which do a lot of business In China, they were also affected.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Twin concerns about the current fragility of China’s economy and longer-persisting high interest rates in the United States have quashed hopes of a dose of motivation.” on Monday to start the week.
“The FTSE 100 has opened in the red, with miners among companies on the defensive.”
Back in London, Astrazeneca was on the move after a couple of upgrades from City analysts. Jefferies upgraded the stock from “hold” to “buy” and raised its price target to 13,000 pence from 10,500 pence, while Morgan Stanley raised its price target to 12,900 pence from 12,700 pence.
Astrazeneca shares gained 1.3 per cent, or 148 pence, to 11,194 pence.
Morgan Stanley also raised its price target for rival drugmaker GSK, from 1,440 pence to 1,585 pence. In an additional boost, Japanese regulators gave the green light to GSK’s new RSV vaccine. The Arexvy vaccine was approved for use in adults over 60 in an effort to reduce the 4,500 hospital deaths in that age group each year from the virus.
The approval is the first in Asia and follows similar measures in the United States, the United Kingdom and the EU. The shares rose 0.5% or 8p to 1,535.8p.
Shares in Gulf Keystone Petroleum soared 10 percent, or 10 pence, to 110 pence after it said oil sales from its Shaikan field in Iraq’s Kurdistan region rose to around 28,800 barrels a day this month from 17,200 in August and 4,900 in July.
