Supermarket retailers have also been feeling the pinch this year as budget rivals Aldi and Lidl continue to win the hearts of cash-strapped Brits.
According to data provider Markit, short interest in consumer-facing businesses has risen by a quarter since the start of the year and now stands at the highest level since April last year. It said that 17.8% of shares in J Sainsbury were now out on loan, although they did rise 1.1p to 226.5p today.
“The erosion of UK spending power has seen consumer-focused companies targeted by short-sellers as fierce competition for a share of the UK wallet disrupts the established landscape,” Markit said.
Overall, the FTSE 100 fell 110.56 points, or 1.78%, to 6101.08 although ITV — which broadcasts X Factor, starring Cheryl Fernandez-Versini — was a big riser, up 2.8p to 196p after a positive update from rival Sky.
On London’s junior AIM market, shares in the troubled outsourcing group Quindell rose more than 11% to 137.97p as non-executive director, David Currie, spent just under £25,000 buying shares in the group.
Quindell this week boasted that it was on course to break the £1 billion revenue barrier despite a torrid year that has seen its share price tumble by about 50%.
It is still picking up the pieces after a bruising encounter with US short-seller Gotham City Research, which back in April claimed it was “built on quicksand”. Quindell, which strongly denied the claims, has since won a libel case in the High Court.
