London close: Stocks manage to finish above the waterline

dl city of london generic walkie talkie square mile finance 20240326 5 — Sharecast / public domain image

Frasers Group

626.50p

16:45 20/12/24

2.79%

17.00p

London markets showed resilience on Monday, finishing in the green as investors looked to the start of the US Federal Reserve’s policy meeting.

Hipgnosis Songs Fund Limited NPV

101.80p

16:30 26/07/24

0.00%

0.00p

Oil Equipment, Services & Distribution

4,928.34

16:30 18/12/24

0.00%

0.00

Prudential

628.40p

16:40 20/12/24

-0.22%

-1.40p

The FTSE 100 edged up by 0.09% to 8,147.03, while the FTSE 250 saw more robust growth, climbing by 1.31% to reach 20,084.79.

In currency markets, sterling was last up 0.46% on the dollar to trade at $1.2551, while it increased 0.24% against the euro to change hands at €1.1710.

“As US markets have so often demonstrated, record highs tend to beget more record highs,” said IG chief market analyst Chris Beauchamp.

“It’s not often that the FTSE 100 can demonstrate this, but UK investors can certainly be forgiven for revelling in the current strong run.

“Of course, it is still lagging behind a number of its peers in terms of its return for the year so far, but the procession of new highs should continue to attract fresh flows to the UK market.”

Data shows annual rise in UK house prices

In economic news, fresh industry data revealed a significant rise in UK house prices over the past year, driven notably by a burgeoning demand for smaller residential properties.

According to research from Halifax, annual property price growth hit 1.9% in February, reaching £282,430.

That marked a noteworthy recovery from October's low of -4.1%.

However, Halifax noted considerable discrepancies in price growth across different property types.

While prices of flats and terraced houses soared by 2.7% and 2.6%, respectively, semi-detached properties experienced a more modest increase of 1.7%.

On the continent, economic sentiment faced challenges across both the eurozone and the wider EU in April, according to survey data, coupled with a downturn in employment expectations.

The European Commission's Economic Sentiment Indicator (ESI) recorded a slight decline in both regions, with the EU slipping 0.3 points to 96.2 and the euro area dropping 0.6 points to 95.6.

Similarly, the Employment Expectations Indicator (EEI) witnessed a more pronounced decrease in both areas, declining 0.5 points to 101.7 in the EU and 0.7 points to 101.8 in the eurozone.

Additionally, preliminary data indicated a modest uptick in German inflation for April, primarily attributed to a rise in food prices, juxtaposed with less-than-expected declines in energy costs.

Consumer prices, harmonised on an EU basis, increased by 2.4% in April compared to 2.3% year-on-year in March.

Expectations for Eurozone inflation, due on Tuesday, anticipated no change at 2.4%, with cuts forecast for June.

Frasers in the green, Petrofac tumbles

On London's equity markets, Frasers Group jumped 3.08% after announcing an £80m share buyback initiative.

Prudential added 1.58%, propelled by robust results from Asia-Pacific insurer AIA Group.

Similarly, Anglo American saw a significant uptick of 3.54% following reports indicating a potential improved offer from BHP Group after its initial proposal was rejected.

Hipgnosis Songs Fund registered a modest increase of 0.96% as it agreed to terms on a £1.2bn takeover by private equity investor Blackstone, amidst an ongoing battle with rival Concord.

Insurer Beazley rose 2.19%, after reporting first-quarter results in line with guidance, with insurance written premiums growing at high single digits, instilling optimism among investors.

On the downside, JD Sports Fashion faced a 2.5% decline after Barclays downgraded the shares and adjusted the price target downwards.

The downgrade followed the retailer's recent acquisition of US rival Hibbett for $1.1bn.

Outside the FTSE 350, Petrofac experienced a notable downturn, plummeting by 29.33%.

The company announced a delay in the publication of its full-year results and indicated the possibility of converting a significant portion of its existing debt to equity, prompting concerns among investors.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,147.03 0.09%
FTSE 250 (MCX) 20,084.79 1.31%
techMARK (TASX) 4,595.72 1.00%

FTSE 100 - Risers

Entain (ENT) 818.20p 4.34%
Anglo American (AAL) 2,750.00p 4.05%
Smith (DS) (SMDS) 351.60p 3.41%
Frasers Group (FRAS) 820.50p 3.08%
Beazley (BEZ) 657.50p 3.06%
Prudential (PRU) 742.60p 2.60%
Phoenix Group Holdings (PHNX) 496.20p 2.31%
St James's Place (STJ) 444.80p 2.16%
Smurfit Kappa Group (CDI) (SKG) 3,500.00p 2.10%
Airtel Africa (AAF) 112.10p 2.09%