Stock markets concluded the final trading sessions of 2024 with disappointing performances, particularly on the London Stock Exchange. On the last full day of trading before the year's end, the FTSE 100 index dropped by 0.35 per cent, equating to a loss of 28.77 points, settling at 8,121.01. Meanwhile, the FTSE 250 experienced a similar decline, falling 0.41 per cent or 84.10 points to close at 20,404.55.

Over the month of December, the FTSE 100 has decreased by more than 2 per cent and has seen a more notable reduction of 5 per cent since reaching its peak in May. Despite these setbacks, the index has shown a net increase of approximately 5 per cent over the course of the year, consistently maintaining above the 8,000 mark since April.

In contrast, major US stock indices are poised to end the year with significant gains, the largest since 1997, largely driven by technology stocks associated with artificial intelligence (AI). Noteworthy contributors to this rise include chip manufacturing firm Nvidia. However, analysts have cautioned that a shift away from some of the high-performing tech stocks may occur in the new year, suggesting that the expectations surrounding AI-related companies might be overly optimistic and potentially unsustainable.

Speculation within investment circles has turned towards quantum computing as a promising area for future growth. In early December, Google made headlines by announcing advancements with its Willow chip, which can reportedly solve complex problems in just five minutes—tasks that would take current supercomputers an estimated 10 septillion years to resolve. Despite these innovations, experts indicate the technology is still not ready for widespread commercial application, indicating a possible delay in the tech sector's advancements.

A recent example of the fluctuating fortunes within the market can be seen in the underwhelming market debut of Alteration Earth on the AIM exchange, following its acquisition of Pri0r1ty AI, which offers AI-powered Software-as-a-Service solutions aimed at small- to medium-sized businesses. The newly rebranded Pri0r1ty Intelligence Group raised £900,000 with shares priced at 13.5p, giving it an initial market capitalisation of £13 million. However, after opening at a premium level, it concluded the trading day at 10.75p.

Rolls-Royce, one of the strong performers in 2024, also faced challenges on the trading floor, with shares falling 1.3 per cent to 570.4p amidst concerns over the implications of a recent passenger jet crash in South Korea for US plane maker Boeing and its supply chain.

A mix of corporate news from smaller companies comprised the end-of-year highlights. SDX Energy experienced a notable surge in share price, increasing by 28.6 per cent to 0.45p, following the postponement of a crucial London meeting regarding its proposed delisting from AIM. Additionally, Ondine Biomedical saw a 5.9 per cent rise, reporting it had treated its first patient in a phase three clinical trial for its innovative nasal photodisinfection technology. In a remarkable turnaround, Cel AI enjoyed a 41.7 per cent jump in share price, closing at 0.09p, as it transitions its focus from skincare to cryptocurrency and anticipates higher performance in the forthcoming year.

Conversely, NARF Industries' share price fell by 8.4 per cent to 0.55p due to a reported decline in half-year earnings attributed to temporary delays in the US government budget, highlighting the diverse trends present in the market as it enters the new year.

Source: Noah Wire Services