The sun has finally risen for the FTSE 100 after a bleak start to the summer.
Britain’s blue-chip share index yesterday posted a weekly gain, its first in six weeks.
Investors have been encouraged in recent days by news that inflation is returning to the Bank of England’s 2 percent target rate and increased hopes of a UK interest rate cut in August.
The weekly gain was only a modest 1.1 percent, or 91 points, as the rally lost steam on the fifth day. The FTSE 100 closed 0.4 per cent, or 34.74 points, lower at 8,237.72.
The FTSE 250 index, however, managed to record a more impressive weekly advance of 1.6 per cent, even though the mid-cap index finished down 0.3 per cent, or 56.37 points in the last session of the week, at 20,442.35.
More optimistic outlook: Britain’s blue-chip share index posted weekly gain, first in six weeks
JP Morgan Cazenove is now becoming more positive on the UK water sector, having been cautious since 2022. Analysts at the US firm said they believe share prices of listed water companies now reflect headwinds for the sector and suggest that the market is underestimating certain positive aspects.
United Utilities gained 1.6 per cent, or 16.1 pence, to 1,009 pence, as JP Morgan upgraded its rating to overweight, while Severn Trent added 0.9 per cent, or 23 pence, to 2,464 pence after that its rating was raised to neutral.
Positive comments and a price target increase from JP Morgan were also the boost to ITV’s profits, rising 4.7 per cent, or 3.6p, to 80.3p. But a downgrade by Morgan Stanley dragged FTSE 100-listed value retailer B&M down 1.7 per cent, or 8.1p, to 469p.
Royal Mail owner International Distribution Services (IDS) saw its shares fall 1.4 per cent, or 4 pence, to 319 pence, below Daniel Kretinsky’s agreed takeover offer of 370 pence per share, while government authorization is still pending.
Informa rose 0.02 per cent or 0.2p to 860p as the information publisher and events organizer praised double-digit revenue growth so far this year and said it is on track to deliver results by 2024 at the upper end of the guidance.
Ocado rose 0.4 per cent, or 1.4p, to 311.4p. Recent market debutant Raspberry Pi continued to attract interest following its fizzing debut, adding 0.4 per cent or 1.4p, to 373.5p. And JLEN Environmental rose 1.7 per cent, or 1.5p, to 88.2p, after the company raised its dividend outlook, despite the value of its net assets declining in a difficult year for the renewable energy investment sector.
Among small caps, Crimson Tide rose 49.3 per cent, or 87.5p to 265p, after revealing that Ideagen has proposed a potential £21m cash offer for the enterprise software company . The news came as Crimson Tide also said it had rejected a revised stock offering proposal from Checkit, which announced a first offer in early June.
Gulf Keystone gained 6.4 per cent, or 9.1p, to 150.9p as it told investors it will pay £12m as an interim dividend, in an upbeat annual general meeting statement. But on the negative side, Strategic Minerals fell 16.7 percent. or 0.03p, to 0.15p after reporting a big loss for the year to the end of 2023.