MARKET REPORT: Traders back a brighter 2023 for turbulent tech

One of Britain’s top investors in Silicon Valley rose highest in London as traders pinned their hopes on a better 2023 for global tech stocks.

In the penultimate session of the year, FTSE 100-listed Scottish Mortgage Investment Trust rose 3.7 per cent, or 25.8p, to 715.8p following a positive day for its portfolio.

A favourite among retail investors, its largest holdings are in jab maker Moderna, Tesla, the electric car maker, and Gucci-owner Kering. 

The trust has had a turbulent year, having seen its net asset value fall by 15 per cent in the six months to September while shares are down nearly 48 per cent.

But there are hopes 2023 could be better for Scottish and tech investments around the world.

Dan Ives, an analyst at Wedbush Securities, said: ‘As 2022 comes to an end, the big question for investors remains what is ahead for 2023. 

We believe the underlying set-up for the tech sector has created many opportunities for growth investors willing to look on the other side of this dark macro storm.

‘The sector will be up roughly 20 per cent in 2023 from current levels, with Big Tech, software and semis leading the charge despite the macro/Fed wildcards.’

So far so good. Yesterday shares in Tesla soared 8.1 per cent, or $9.11, to $121.81, after its boss Elon Musk urged his staff not to be ‘bothered by stock market craziness’.

Investors will be hoping for more of the same next year.

With the London stock market on course for a third consecutive session of gains, the FTSE 100 was up 0.2 per cent, or 15.53 points, to 7512.72 and the FTSE 250 rose 0.6 per cent, or 110.95 points, to 18,996.45. 

Stock Watch –  Allergy Therapeutics

Allergy Therapeutics will suspend the trading of its shares from Tuesday following audit delays.

The pharma group specialising in allergy vaccines said delays to completing the audit for the year to June mean it will miss the deadline to publish its annual report and accounts by tomorrow.

It is also looking to raise fresh funds after it halted production for more than a month. Shares, at a record low, plunged 56 per cent, or 6.35p, to 5p yesterday.

Oil prices fell 1.2 per cent to hover close to $82.26 a barrel in the wake of Russia’s ban on oil sales to nations imposing a price cap. BP inched up 0.1 per cent, or 0.35p, or 480.75p, while Shell dipped 0.5p to 2349.5p.

Matters were not helped by fresh Covid fears amid rising cases in China. It prompted the US to issue mandatory tests for incoming visitors from China.

Elsewhere, Antofagasta warned that its work on mine development at the Los Pelambres site in Chile has slowed over the past couple of days following a blockade by ‘a small group of people, without connection to any specific incident or situation’.

The mining giant said it has requested ‘compensation to clear the access’ and is working to find a swift resolution. 

It comes only two months after Antofagasta avoided labour strikes after reaching a contract agreement with supervisors at the mine on pay, bonuses and benefits. It fell 2.1 per cent, or 34p, to 1552.5p.

Meanwhile, B&M shrugged off analysts’ cautious note. City broker Jefferies said the bargain retailer’s trading performance this year fell short compared to the German discounters Aldi and Lidl which are ‘better positioned’ to attract middle-class consumers looking for more affordable food.

But the retailer’s stock rose 0.5 per cent, or 2.2p, to 412.4p.

Airline stocks endured another bad day as investors dumped shares in the wake of a price- fixing probe.

Wizz Air fell 1.6 per cent, or 32p, to 1967.5p while Easyjet sank 0.2 per cent, or 0.5p, to 332.3p and British Airways owner IAG was down 0.1 per cent, or 0.08p, to 126.14p.

Italy’s competition watchdog the AGCM is investigating a claim that airlines such as Easyjet, Ryanair and Wizz Air colluded to raise prices for domestic flights to and from Sicily over Christmas.

Consumer group Codacons has alleged ‘a specific collusive will’ to push up prices.

Sicilians are sensitive about prices as many who live and work in northern or central Italy travel back for Christmas.