Burberry shares hit a 14-year low just days after the luxury fashion company was booted from the FTSE 100.
In another gloomy day for investors, the company’s shares yesterday fell 5.2%, or 33p, to 604.4p, their lowest level since May 2010.
The latest quarterly stock market shake-up this week saw Burberry replaced in the blue-chip index by Lloyd’s of London insurer Hiscox (down 1.4%, or 16p, to 1165p), which is worth £4bn.
The luxury fashion group’s value has plunged this year as shoppers cut back on their expensive coats, while weaker demand from China has hit sales across the sector.
Burberry also issued a profit warning, canceled its dividend and fired its chief executive Jonathan Akeroyd this summer.
Falling out of favour: In another gloomy day for investors, Burberry shares fell 5.2 per cent to 604.4p, their lowest level since May 2010
The shares have more than halved in value this year and have lost 14 per cent in the past two weeks. Burberry, now worth £2.2bn, is a far cry from when the shares peaked at nearly 2650p in April last year.
Earlier this week, analysts at AJ Bell said Burberry was vulnerable to a takeover approach due to the sharp fall in its share price.
In the broader market, the FTSE 100 lost 0.7%, or 60.24 points, to 8,181.47, and the FTSE 250 fell 1.3%, or 268.5 points, to 20,494.
GSK has reported positive results from the latest study looking at the effectiveness of its drug Nucala in treating patients with a common lung disease.
Chronic obstructive pulmonary disease (COPD), which causes shortness of breath and severe coughing, affects more than 300 million people worldwide. Shares in the pharmaceutical giant rose 0.8 percent, or 12.5p, to 1651.5p.
Vistry revealed its earnings a day after revealing it was on track to build more than 18,000 homes and said full-year profits were expected to be higher than last year.
The Bovis Homes owner has also outlined plans to launch a £130m share buyback this month.
Shares, which rose 8.5% on Thursday, fell 6.3%, or 90p, to 1340p.
Digital 9 Infrastructure has warned of a valuation drop due to a revised outlook on how much cash is available among the companies it invests in. The data center and wireless networking investor expects to report its net asset value stood at 45p per share at the end of June, down from 79.3p six months ago.
The company, which sold its crown jewel Verne Global to French fund Ardian for £450 million in March, is also looking to sell some assets, except network provider Arqiva. Shares fell 10.2 percent, or 2.1p, to 18.5p.
Oil and gas minnow Zephyr Energy reported positive production results from its Utah well in the US. Shares rose 10.5 percent, or 0.4p, to 4.2p.
Large-scale battery specialist Invinity suffered steep losses after warning that a delay in new product launches and deal closures would hit revenues this year. The outlook came as Invinity said Chief Executive Larry Zulch had resigned after four years. Shares fell 42.3 percent, or 8.25p, to 11.25p.