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Image source: Getty Images <\/p>\n Image source: Getty Images <\/p>\n
The FTSE 100 slipped a further 3.66% this week, extending a losing streak that began in mid-April 2026. The leading index for UK shares is now down almost 5% from its 52-week high, hinting at a potentially prolonged downturn.<\/p>\n
This decline is primarily driven by heightened geopolitical instability in the Middle East and concerns over its impact on global energy infrastructure. That means investors are getting extra jittery about the UK economic situation \u2013 in particular, sticky inflation and a weaker labour market.<\/p>\n
While nobody likes to sell at a loss, holding on to shares that face structural challenges might do more damage in the long run.<\/p>\n
So in this tempremental environment, here are two shares I\u2019d consider avoiding for now.<\/p>\n
Associated British Foods <\/p>\n
Associated British Foods (LSE: ABF) is a well-established supplier of everyday goods, giving it defensive credentials. Prior to Covid, it enjoyed 20 years of unbroken dividend increases, making it attractive to income investors.<\/p>\n
But disappointing festive trading in 2025 led to a profit warning, putting the share price under severe pressure.<\/p>\n
Recent earnings reports reflect a struggle to maintain volume growth in a cost-cutting environment. So even with a decent dividend history, sustainability is now questionable. Not ideal for for those eyeing long-term dividend returns.<\/p>\n
Of course, this means the valuation is weakening as analysts downgrade profit forecasts, which could offer a cheap entry point for value hunters.<\/p>\n
The primary risk is its heavy reliance on consumer discretionary spending. With inflation still tightening consumer\u2019s wallets, traditional retail faces a difficult road to recovery.<\/p>\n
Endeavour Mining <\/p>\n
Mining stocks are often treated as safe havens, but Endeavour Mining (LSE:EDV) tells a different story. Its fortunes (and share price) exploded recently inline with a rallying gold price. So long as gold remains strong, it could keep growing.<\/p>\n
But the firm has seen high volatility as geopolitical instability ripples through the commodity markets.<\/p>\n
From a financial standpoint, it\u2019s doing well but rising costs are a concern. Subsequently, the market has responded with caution, which naturally has hit the share price.<\/p>\n
On top of that, the dividend story has been erratic, largely because management is currently prioritising capital preservation and debt reduction over shareholder payouts.<\/p>\n
So now we have a company that relies heavily on operational stability in politically sensitive regions. That\u2019s not exactly a low-risk investment. If gold demand softens, it could all come tumbling down like a house of cards.<\/p>\n
What are some better options? <\/p>\n
Avoiding these stocks isn\u2019t about panicking, it\u2019s about recognising that the capital might be better deployed elsewhere. Both ABF and Endeavour Mining face specific pressures that could persist for some time, whether weak retail demand or operational hurdles in volatile regions.<\/p>\n
Keeping your money tied up in underperforming cyclical assets during a market downturn is a classic investing trap.<\/p>\n
Rather than clinging to stocks that are under water, shifting toward more defensive, reliable options might be worthwhile. Consider utility companies like SSE and National Grid, or blue-chip pharmaceutical giants such as AstraZeneca. They look more stable than retail and mining stocks right now.<\/p>\n
These firms typically offer more consistent dividend payouts and possess the \u2018defensive moats\u2019 necessary to weather economic storms.<\/p>\n
By strategically allocating capital into more resilient sectors, you can safeguard a portfolio while waiting for the market outlook to improve.<\/p>\n
The post 2 UK shares to consider avoiding as the FTSE 100 extends losses<\/a> appeared first on The Motley Fool UK<\/a>.<\/p>\n More reading<\/p>\n Mark Hartley has positions in AstraZeneca Plc and National Grid Plc. The Motley Fool UK has recommended Associated British Foods Plc, AstraZeneca Plc, and National Grid Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.<\/a><\/p>\n Motley Fool UK 2026<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images The FTSE 100 slipped a further 3.66% this week, extending a losing streak that…\n","protected":false},"author":2,"featured_media":32909,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[15361,320,5692,5,6],"class_list":["post-32908","post","type-post","status-publish","format-standard","has-post-thumbnail","category-uk","tag-endeavour-mining","tag-ftse-100","tag-share-price","tag-uk","tag-united-kingdom"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116550162354346671","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/32908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=32908"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/32908\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/32909"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=32908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=32908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=32908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}