FTSE 100 close: UK index ends slightly lower, GameStop plummets on new share sale

• FTSE 100 ends week slightly lower at 8,420
• GSK sells more Haleon
• Harland & Wolff contract in doubt
• GameStop share sale hits share price
• FTSE 100 finishes Friday slightly lower

The FTSE 100 closed slightly lower, down 13 points or 0.16%, marked at 8,420.

London’s blue-chip benchmark faced a challenging end to the week, marked by a 14-point drop.

Amongst the winners were major mining companies, supported by international metal prices, with Rio Tinto, Fresnillo, Antofagasta, and Anglo American all higher.

Moving lower included Entain, Ashtead, Spirax-Sarco Engineering, and Burberry kept the index down​​.

GameStop drops 20% as it launches new share sale

GameStop (NYSE:GME) shares will still close the week’s trading substantially higher than they began it, despite a 20% drop on Friday triggered by an opportune share sale and a reminder of the retailer’s actual financial performance.

Capitalising on recent share price strength, GameStop is now planning to sell another 45 million shares as it launches a new primary share offering priced “at the market”.

At the same time, it told investors it expects to report a decline in first-quarter sales.

It means new guidance is pitched in a range between $872 million and $892 million, a sharp decline from the $1.24 billion achieved for the same quarter last year. The retailer added that its net loss for the quarter would be between $27 million and $37 million, compared to a $50.5 million loss for the same period a year ago.

GameStop’s struggles have come amid rising e-commerce competition, the rise in direct digital game sales on consoles and PCs, and, in response management has been pushing cost-cutting programs and job cuts.

It’s a predicament that is at the core of the ‘bear’ case that’s led Wall Street institutions shorting GameStop shares – a trading call that’s been punished by the so-called “short squeeze” by retail investors for the second time since 2021.

Earlier this week, GameStop shares had surged following posts from the long-dormant account of “Roaring Kitty,” also known as Keith Gill, the key figure in the 2021 meme stock phenomena that last saw GameStop shares racing higher.

GSK offloads the last of its Haleon shares

GSK (LSE:GSK, NYSE:GSK) raised a total of £3.9 billion through the sale of its stake in consumer healthcare products business Haleon (LSE:HLN, NYSE:HLN).

It comes as GSK continues to focus its investments on research and development in potential treatments for cancer, vaccines, and infectious diseases.

The final tranche of shares, consisting of over 385 million shares sold at 324p each, raised £1.24 billion.

It represented a 2% discount to Haleon's closing price of 331p on Thursday.

GSK has been selling shares in Haleon, parent of the Sensodyne and Centrum brands, offloading its 12.94% stake in stages since spinning off the healthcare company in July 2022.

The sequence included sales in May and October of last year and January this year.

In London, Haleon shares closed 0.85% lower at 329.57 whilst GSK finished Friday down 0.5% at 1,775p.

Harland & Wolff stock fightback after report says contract at risk

Harland & Wolff’s (LSE:HARL) is reportedly at risk of losing a £1.6 billion contract from the UK Ministry of Defence contract.

The Belfast-based shipbuilder, which was previously placed into administration in 2019, had seen a turnaround in its fortunes by late 2022 when it emerged as a preferred bidder for the substantial defence contract.

The contract will see it build three vessels to provide munitions, stores, and provisions to the Royal Navy’s aircraft carriers, destroyers, and frigates. But, recent media reports suggest that the government is reconsidering the contract, with BAE Systems, Babcock, and A&P Group possibly stepping in to take over the project.

It comes after a report from The Times indicating that Harland & Wolff’s £200 million government funding round was rejected.

In response, chief executive John Wood denied the rejection claim, stating, "Our application has not been rejected and continues to be a work in progress.

“I expect to be providing a fuller update on our refinancing plans in the next few weeks."

In London, H&F stock fell 10% at one point, before recovering much of the early losses. By the close, the price was down 1% for the day at 9.65p.