(Reuters) -Shares of Morgan Advanced Materials slipped nearly 14% on Tuesday after the British chip parts supplier forecast annual sales to be lower than last year due to weak semiconductor demand and growing uncertainty in European industrial markets.

Chip demand has stayed under pressure amid high customer inventories and deferred orders, while stagnant industrial output in Europe and geopolitical tensions have further weighed on client sentiment.

Shares of the firm, which has operations across 60 sites globally, were down 8% at 201 pence by 0805 GMT. The stock was the top loser on FTSE midcap index, which fell 0.46%.

“This is an unexpected downgrade given some signs of stabilisation with the half-year results…(this) will likely cause another hit to the share price and investor sentim

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