FTSE falls on dire Budget 2013

Thursday, 21 March 2013

In Europe, The FTSE 100 fell on Wednesday for the fourth consecutive day, weighted down by the Budget published the same day. The gloomy economic prospectus, that foresees a tougher year ahead for families and small businesses did not help the anxiety ahead of the outcome of a U.S. central bank meeting happening later on the day.

Thus, the British benchmark index FTSE 100 ended down 8.62 points, or 0.1 percent, at 6,432.70, declining for a fourth consecutive session - a run of losses not seen since November 2012, as stressed Reuters.

PVH Corp.'s shares fell sharply in trading on Tuesday, extending its losses from the previous trading sessions. The stock fell 1.55 percent to finish the day at 114.26 dollars. The company's shares fell to an intra-day low of 113.90 and are down more than 3.70 percent in the last three sessions. The stock has pared some of its gains for the year as a result of recent losses.

Ralph Lauren Corp.'s shares also struggled, dropping 1.19 percent to 167.20 dollars. The stock fell to an intra-day low of 165.20 dollars earlier in the day. Despite the sharp decline on Tuesday, Ralph Lauren's shares are still up more than 11.50 percent for the year, stressed analysts that follow the stock. Ralph Lauren shares are outperforming the S&P 500.

In the corporate news, Asos and Guess reported both fourth-quarter and full year results, both beating estimates. Guess shares traded down 5.2 percent in extended trading after releasing results, with the company now expecting first-quarter earnings of 5 cents to 10 cents per share, lagging analysts' average estimate of 29 cents per share, according to Thomson Reuters I/B/E/S.

Finally, Chico’s FAS, Inc. (NYSE:CHS) reported earlier this week that its Board of Directors approved a quarterly cash dividend of common stock of CHS of 0.055 dollars per share, a 4.8 percent raise from March 2012. It will be payable on 1st April, to shareholders of record on 18th March.

Currently, Chico's FAS has a total of 166.42 million outstanding shares and its total market capitalisation is 2.97 billion dollars. The stock 52-week price range remained 13.52 – 19.76 dollars, while during last trade its highest price was 17.86 dollars.

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