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Tech investor Prosus at the bottom of lower AEX after update

Prosus was one of the largest decliners in the Amsterdam AEX index on Thursday, which fell back after the advance a day earlier. Investors were not satisfied with the update of the annual figures of the tech investor. In addition, the markets also processed the sharp rate hike in the United States. The Fed raised the interest rate by 0.75 percentage point. That is the largest increase in 28 years.

The US central bank seems to be doing everything possible to combat high inflation. An interest rate hike of 0.75 percent may follow in July, warned Fed boss Jerome Powell, who said he was determined to reduce inflation. He noted, however, that such large interest rate steps will not be common.

Prosus fell nearly 3 percent. The company expects to make a solid profit in the financial year, which ran to the end of March, but that is mainly due to the sale of a billion-dollar stake in the Chinese internet group Tencent. Without this yield, the operating profit for the year will fall sharply.

The main index on Beursplein 5 was 1.4 percent lower in morning trade at 653.78 points. The day before, the indicator still gained 1.6 percent. The MidKap fell 0.9 percent to 930.82 points. The stock exchanges in Frankfurt and Paris lost 1.3 percent.

London’s FTSE index fell 1 percent ahead of the Bank of England’s interest rate decision. The British central bank is expected to raise interest rates for the fifth time in a row to combat high inflation in the United Kingdom.

Asos plunged nearly 16 percent in London. The British online clothing retailer lowered its revenue and profit forecast for this year. The rising cost of living in the UK is weighing on sales, the company said. Asos is also experiencing supply chain disruptions caused by the war in Ukraine.

In addition to Prosus, chip company Besi and meal delivery company Just Eat Takeaway were in the tail group with minuses of up to 5 percent. Telecom group KPN was the only climber with a plus of 0.2 percent.

Euronext rose 2.7 percent. Analysts from the American bank JPMorgan increased their recommendation for the operator of the stock exchanges in Amsterdam, Brussels, Paris and Milan. Sif fell 0.8 percent. Together with the Belgian company Smulders, the foundation specialist has been awarded a contract for the He Dreiht wind farm in the North Sea.

The euro was worth $1.0394, against $1.0403 a day earlier. A barrel of US oil cost 0.8 percent more at $116.27. Brent oil became 0.7 percent more expensive at $119.30 a barrel.



Tech investor Prosus at the bottom of lower AEX after update
Source link Tech investor Prosus at the bottom of lower AEX after update

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