London close: Stocks jump on return from long weekend

London markets closed on a high note on Tuesday, as the top-flight index surged to record highs, buoyed by positive momentum from the US and European markets.

The FTSE 100 rose 1.22% to reach 8,313.67 points, while the FTSE 250 saw gains of 1.23% to settle at 20,413.08.

In currency markets, sterling was last down 0.2% on the dollar to trade at $1.2537, while it fell 0.24% against the euro to change hands at €1.1638.

“The FTSE 100 may feel friendless, given the ongoing concerns about firms delisting from the UK to join other exchanges, the lack of new flotations and cries for fresh initiatives to boost interest,” said AJ Bell investment director Russ Mould.

“But the UK equity market’s premier index is setting new all-time highs all the same, perhaps to adage that, ‘you can have good news and cheap stocks, just not both at the same time.

“Investors now have to decide whether the UK is cheap because it (still) deserves to be cheap, or whether the times really are changing, because if they are then further welcome gains could be on the cards.”

UK construction sector grows, but retail sales sink

In economic news, the UK construction sector displayed robust growth in April, marking its strongest expansion in over a year, according to fresh survey data.

The S&P Global construction purchasing managers’ index (PMI) rose to 53.0 from 50.2 in March, signalling the second consecutive month of positive territory and the most rapid pace of expansion since February 2023.

Commercial building saw a notable uptick, reaching 53.9 from 49.9 in March, driven by increased demand for refurbishment projects.

Civil engineering activity also surged to 53.6, marking the sharpest expansion in nine months.

However, housebuilding experienced a decline to 47.6 from 49.9, attributed to sluggish market conditions and higher borrowing costs.

“The construction sector consolidated its recent return to growth in April, with total industry activity rising at the fastest pace for 14 months amid an ongoing recovery in order books,” said Tim Moore, economics director at S&P Global Market Intelligence.

“Demand was boosted by greater confidence regarding the broader UK economic outlook.

“Commercial construction outperformed in April and civil engineering also provided a solid contribution to overall growth.”

Meanwhile, UK total retail sales experienced a 4% year-on-year decrease in April, influenced by wet spring weather and the early timing of the Easter break.

The BRC-KPMG retail sales monitor noted dampened sales growth in clothing, footwear, DIY, and garden furniture, despite promotions in computing which boosted sales.

Online penetration saw a slight rise to 36.2% from 36.1% a year earlier, with overall growth below previous averages.

“Dismal weather and disappointing sales led to a depressing start to Spring for retailers, even accounting for the change in timing of Easter,” said BRC boss Helen Dickinson.

“People delayed typical spring purchases despite retailers’ attempts to entice customers with heavy discounts.

“Many retailers are hoping for brighter sales over the summer months as social events ramp up, and consumer confidence could improve with a potential cut in interest rates.”

In the housing market, UK house prices rebounded in April, growing by 0.1% on the month and 1.1% on the year, signalling resilience in the face of higher interest rates, according to data from lender Halifax.

New car sales also continued their upward trend for the 21st consecutive month in April, driven by increased fleet demand, as noted by the Society of Motor Manufacturers and Traders.

On the continent, the eurozone construction sector remained in decline at the start of the second quarter, with sharp falls in new orders contributing to a reduction in total construction activity across major economies like Germany, Italy, and France.

The HCOB eurozone construction PMI total activity index dropped to 41.9 in April from 42.4 in March, indicating a significant contraction.

On a brighter note, eurozone retail sales saw an uptick in March, surpassing expectations with a 0.8% rise, reversing February's decline.

Across the EU, retail sales rose 1.2%, a notable improvement.

Overnight, Australia's central bank opted to keep interest rates unchanged at 4.35% for a fourth consecutive meeting, despite a slower-than-expected fall in inflation.

Shell rises, BP falls and airlines descend

On London’s equity markets, Shell rose 1.31% after reports of negotiations with Saudi Aramco, Saudi Arabia's state-owned company, regarding the potential sale of its gas station business in Malaysia.

Sources suggested the deal could reach up to $1bn.

On the downside, BP lost 1.31% after it reported a decrease in first-quarter profit attributed to lower oil and gas prices, a US refinery outage, and weaker fuels margins.

Despite initiating a $1.75bn share buyback, BP's underlying replacement cost profit for the quarter stood at $2.7bn, down from $5 billion a year earlier.

Airlines were also in focus, with easyJet down 4.69% and IAG losing 0.7% after Ryanair boss Michael O’Leary said summer ticket prices were expected to be lower than previously anticipated.

Ferrexpo slipped 1.99% despite reporting a significant increase in production and sales volumes for the first quarter at its Ukraine subsidiary, Ferrexpo Poltava Mining (FPM).

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,313.67 1.22%
FTSE 250 (MCX) 20,413.08 1.23%
techMARK (TASX) 4,701.38 0.73%

FTSE 100 - Risers

DCC (CDI) (DCC) 5,745.00p 4.55%
SSE (SSE) 1,776.00p 4.15%
Barclays (BARC) 210.35p 3.95%
Persimmon (PSN) 1,414.00p 3.48%
Fresnillo (FRES) 567.50p 3.28%
Experian (EXPN) 3,374.00p 3.23%
Weir Group (WEIR) 2,078.00p 3.18%
Flutter Entertainment (DI) (FLTR) 16,200.00p 3.15%
Lloyds Banking Group (LLOY) 53.72p 2.95%
Barratt Developments (BDEV) 492.80p 2.95%

FTSE 100 - Fallers

easyJet (EZJ) 510.20p -5.80%
Burberry Group (BRBY) 1,151.00p -2.46%
Melrose Industries (MRO) 592.60p -2.05%
BP (BP.) 503.70p -1.31%
Smith (DS) (SMDS) 358.00p -1.00%
Haleon (HLN) 326.70p -0.97%
Vodafone Group (VOD) 67.92p -0.76%
International Consolidated Airlines Group SA (CDI) (IAG) 177.40p -0.70%
Standard Chartered (STAN) 750.60p -0.58%
Anglo American (AAL) 2,686.00p -0.50%

FTSE 250 - Risers

Wood Group (John) (WG.) 165.00p 8.55%
Asia Dragon Trust (DGN) 410.00p 7.05%
Tritax Eurobox (GBP) (EBOX) 63.40p 6.20%
4Imprint Group (FOUR) 6,420.00p 5.59%
Future (FUTR) 744.50p 5.23%
RHI Magnesita N.V. (DI) (RHIM) 3,735.00p 5.06%
Diversified Energy Company (DEC) 1,115.00p 4.21%
SDCL Energy Efficiency Income Trust (SEIT) 62.60p 4.16%
CMC Markets (CMCX) 264.50p 4.13%
Inchcape (INCH) 793.50p 4.00%

FTSE 250 - Fallers

Wizz Air Holdings (WIZZ) 2,082.00p -7.05%
TBC Bank Group (TBCG) 2,900.00p -3.84%
Dr. Martens (DOCS) 77.80p -3.83%
PZ Cussons (PZC) 101.40p -3.61%
Chemring Group (CHG) 382.50p -2.05%
ICG Enterprise Trust (ICGT) 1,184.00p -1.82%
Aston Martin Lagonda Global Holdings (AML) 136.60p -1.66%
Moonpig Group (MOON) 155.20p -1.52%
BH Macro Ltd. GBP Shares (BHMG) 356.50p -1.52%
W.A.G Payment Solutions (WPS) 66.00p -1.49%