MARKET REPORT: Darktrace stock hit after KKR sells part of holding

Darktrace shares fell as one of its private backers sold a major stake in the cybersecurity group.

A technology fund run by US private equity shark KKR has revealed it has sold 19.4 million shares in the FTSE 250 company, the equivalent of a stake of around 2.5 per cent.

The group sold the shares for 425 pence each, a 7.8 per cent discount to its last closing price, accumulating a total sale value of almost £82.5 million.

Darktrace shares fell 7.4 per cent, or 33.9p, to 427.1p following the sale announcement.

The fund, known as NGT 1, initially backed Darktrace in 2016, five years before its stock market debut.

Despite the sale, KKR still remains an investor in Darktrace, with its second fund NGT II continuing to hold a 7.3 percent stake in the company. The private equity group’s sale decision follows a recent rise in the share price this month after Darktrace reported strong half-year results.

At the time, the group also raised its sales forecast for the year, predicting that rising geopolitical tensions and the increased risk of cyberattacks would boost demand for its products.

The FTSE 100 index rose 0.6%, or 48.37 points, to 7930.92 as the blue-chip index continues its strong advance and closes in on a previous all-time high of 8012 reached in February of Last year. The FTSE 250 lost 0.09 percent, or 16.99 points, to 19,724.32.

Markets were boosted by growing hopes of an interest rate cut soon after the Bank of England and the US Federal Reserve kept rates steady this week.

Optimism was reinforced earlier this week when Governor Andrew Bailey said cuts were “on the way” and that the Bank could cut rates two or three times this year.

One of the biggest risers was Phoenix Insurance Group, which climbed 8.4 per cent, or 41p, to 529.2p after a strong run of annual results.

The company reported a pre-tax profit of £617m for 2023, up from £544m the previous year, while the amount of cash generated by its business jumped 35% to £2.02bn of pounds sterling.

Among those struggling in the top index was retailer JD Sports, which fell 6.3 per cent, or 7.35p, to 109.75p following dismal results from trainer maker Nike. Bosses of the American giant warned that it was losing market share while sales in China and Europe were lower than expected, raising fears of a greater drop in demand for sportswear.

Rival coaching seller Frasers Group, which owns Sports Direct, also suffered as the stock fell 1.4 per cent, or 11p, to 792p.

Gaming giant 888 rose 0.9 per cent, or 0.8p, to 87.2p after avoiding sanctions from the regulator following a review of its license opened in July last year.

Mid-sized IT company Computacenter has announced that its chairman Peter Ryan will step down at its annual general meeting in May after six years as a director.

Pauline Campbell, one of its non-executive directors, will succeed Ryan.

Shares in Computacenter rose 0.2 per cent, or 6p, to 2702p.