London close: FTSE clings to range-bound gains in positive start to June

Stocks in London clung to their gains after a largely range-bound session that benefited from better-than-expected manufacturing data and amid continuing UK election jitters.

The FTSE 100 pushed up 0.32% to 7,543.77, while the FTSE 250 edged up 0.19% to 20,010.62. This was a theme seen also in Europe, and on Wall St.

Late this afternoon sterling was showing minor gains on the dollar, having spent most of the day lower.

Joshua Mahony, market analyst at IG, said the FTSE had laboured its way forward on Thursday.

"European markets are gradually gaining ground, with volatility remaining relatively anchored given the significant uncertainty that lies ahead," he said.

Jasper Lawler, senior market analyst at London Capital Group, said the FTSE 100 had started the June in the same kind of positive form that made May the strongest month this year thus far.

"It's a one-week countdown to the general election and sentiment in the market seems pretty healthy," he said.

The latest YouGov poll for The Times published overnight showed the Tory lead over Labour has narrowed to just three points.

This came hot on the heels of a projection by the pollster that suggested the Conservatives could lose as many as 20 seats, while Labour could gain 28, leading to a hung Parliament.

Michael Hewson, chief market analyst at CMC Markets UK, was another who noted the continuation of the recent theme of an improving economic environment.

"Positive manufacturing reports from across Europe and the UK has seen a buoyant tone throughout the day," he said.

The UK manufacturing purchasing managers' index from IHS Markit/CIPS slipped to 56.7 in May, from the three-year high of 57.3 in April. This was above consensus for 56.5.

Investors were also mulling over the latest survey from Nationwide, which showed UK house prices fell for the third month in a row in May, the first time this has happened since 2009.

On the corporate front, several miners were rising, as were many insurers and commercial property firms. Oil majors and pharmaceuticals were among other blue-chip sectors doing well.

Unsurprisingly house builders suffered with the latest Nationwide survey, with several utility companies and supermarkets heading lower, too.

Rolls-Royce rose after saying it has won an order to supply low-emissions gas engines for Norwegian ferry operator, Torghatten Nord.

3i was boosted as Barclays upped its target price on the stock to 980p from 750p.

Micro Focus International was a top blue chip riser after reporting a healthy set of results.

Barclays increased the size of the sale of its stake in Barclays Africa Group due to "strong investor demand".

Lloyds Banking Group fell as it completed its acquisition of MBNA credit cards as expected.

Mediclinic slid back after being downgraded by Credit Suisse, while ITV has also come under pressure after being cut to "hold" by HSBC.

Taylor Wimpey is also sharply lower after going ex-dividend, and was also hurt on the Nationwide data.

Market Movers

FTSE 100 (UKX) 7,543.77 0.32%
FTSE 250 (MCX) 20,010.62 0.19%
techMARK (TASX) 3,654.03 0.80%

FTSE 100 - Risers

Paddy Power Betfair (PPB) 8,420.00p 4.34%
3i Group (III) 927.00p 3.58%
Convatec Group (CTEC) 330.80p 3.37%
Micro Focus International (MCRO) 2,460.00p 2.76%
Rolls-Royce Holdings (RR.) 885.50p 2.07%
Antofagasta (ANTO) 817.50p 2.06%
Informa (INF) 684.50p 2.01%
Intu Properties (INTU) 277.20p 1.91%
Ashtead Group (AHT) 1,595.00p 1.85%
AstraZeneca (AZN) 5,328.00p 1.80%

FTSE 100 - Fallers

Taylor Wimpey (TW.) 190.00p -6.45%
National Grid (NG.) 1,050.00p -3.63%
Mediclinic International (MDC) 781.00p -3.40%
ITV (ITV) 191.60p -2.10%
Persimmon (PSN) 2,404.00p -2.08%
Marks & Spencer Group (MKS) 375.30p -1.88%
BT Group (BT.A) 303.85p -1.84%
Barratt Developments (BDEV) 602.00p -1.71%
easyJet (EZJ) 1,390.00p -1.70%
Vodafone Group (VOD) 229.40p -0.91%

FTSE 250 - Risers

Inmarsat (ISAT) 844.50p 5.56%
Auto Trader Group (AUTO) 435.00p 4.54%
IWG (IWG) 343.90p 3.49%
Britvic (BVIC) 720.50p 2.93%
Ferrexpo (FXPO) 176.40p 2.74%
Ladbrokes Coral Group (LCL) 122.40p 2.68%
Sophos Group (SOPH) 464.50p 2.67%
Hochschild Mining (HOC) 293.40p 2.44%
Aveva Group (AVV) 1,982.00p 2.38%
Hill & Smith Holdings (HILS) 1,473.00p 2.36%

FTSE 250 - Fallers

FirstGroup (FGP) 142.30p -5.01%
Aldermore Group (ALD) 233.90p -3.98%
Daejan Holdings (DJAN) 6,565.00p -3.24%
Clarkson (CKN) 2,600.00p -2.99%
Entertainment One Limited (ETO) 237.50p -2.82%
Nostrum Oil & Gas (NOG) 517.50p -2.63%
Crest Nicholson Holdings (CRST) 615.00p -2.61%
Dechra Pharmaceuticals (DPH) 1,901.00p -2.21%
CYBG (CYBG) 261.90p -1.95%
Workspace Group (WKP) 865.00p -1.93%