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London open: Stocks gain after US rally; Bodycote jumps
London stocks rose in early trade on Monday following solid gains on Wall Street at the end of last week.
At 0855 GMT, the FTSE 100 was up 0.3% at 7,484.78.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “It’s a warmer to start to the week for the FTSE 100 and European indices, with stocks largely gaining ground. Even the sprinkle of cold scepticism about the prospects for interest rate cuts isn’t acting as much of a dampener to the red-hot enthusiasm, which helped Wall Street gain fresh new highs on Friday.
“The Nikkei also scaled fresh heights, as the positive vibes spilled over into the tech sector, with the Japanese index appearing to suck in investor appetite for Asian shares, amid a continued aversion towards China.
“The FTSE 100 is largely sitting on the sidelines of the tech rally, given the lack of star names in the index. However, retail stocks have started on the front foot, as speculation has swirled about the potential for tax cuts in the UK Budget in March. It seems to have inspired a bit of confidence that respite is on the way for the retail sector. It’ll be a difficult trade off however, given that more money in consumers’ pockets is aimed at boosting demand for goods and services, just at the time when the Bank of England is trying to trample down inflation, which is still double the target. Nevertheless, there seems to be a little uplift in appetite for a raft of high street and luxury names, which have suffered due to concerns about aspirational shoppers tightening their belts.”
In equity markets, Bodycote rallied as the thermal processing specialist said it would start a $60m share buyback programme after spending less than planned on acquisitions.
Caterer Compass Group nudged lower after saying it has agreed to buy rival CH&CO in a £475m deal.
Endeavour Mining lost ground as it said it achieved production guidance in 2023 and pointed to a further 18% output growth this year, as it promised to increase shareholder returns once its two ongoing growth projects are wrapped up.
In broker note action, Segro was boosted by an upgrade to ‘buy’ from ‘neutral’ at Citi, while Sage was knocked lower by a downgrade to ‘underweight’ from ‘equalweight’ at Barclays.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Barclays Plc | +2.94% | +4.14 | 145.18 |
| 2 |  |
Melrose Industries Plc | +2.53% | +14.60 | 592.00 |
| 3 |  |
Segro Plc | +2.12% | +17.60 | 846.20 |
| 4 |  |
Lloyds Banking Group Plc | +2.00% | +0.86 | 43.52 |
| 5 |  |
Carnival Plc | +1.94% | +23.50 | 1,233.00 |
| 6 |  |
Itv Plc | +1.91% | +1.14 | 60.88 |
| 7 |  |
Pearson Plc | +1.88% | +17.80 | 965.40 |
| 8 |  |
Auto Trader Group Plc | +1.66% | +11.80 | 724.60 |
| 9 |  |
Crh Plc | +1.63% | +88.00 | 5,500.00 |
| 10 |  |
Smith & Nephew Plc | +1.59% | +17.50 | 1,116.50 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Gsk Plc | -1.87% | -29.20 | 1,534.40 |
| 2 |  |
Mondi Plc | -1.13% | -16.00 | 1,395.50 |
| 3 |  |
Glencore Plc | -0.99% | -4.10 | 408.20 |
| 4 |  |
Rio Tinto Plc | -0.99% | -53.00 | 5,326.00 |
| 5 |  |
Sage Group Plc | -0.87% | -10.00 | 1,142.00 |
| 6 |  |
Sse Plc | -0.85% | -15.00 | 1,742.00 |
| 7 |  |
Smurfit Kappa Group Plc | -0.75% | -22.00 | 2,898.00 |
| 8 |  |
Unilever Plc | -0.73% | -27.00 | 3,684.00 |
| 9 |  |
Flutter Entertainment Plc | -0.48% | -75.00 | 15,620.00 |
| 10 |  |
Bp Plc | -0.43% | -1.90 | 443.90 |
Monday newspaper round-up: Homeowners, UK stock market, Compass
Homeowners in England and Wales who sold their property in 2023 netted an average profit of £102,000 despite house prices falling last year, according to new data. The data, issued by estate agent Hamptons, shows that while 2023 was challenging for the UK property market, years of strong price growth meant those who sold a home last year typically banked a sizeable profit or had a decent sum to put towards their next purchase. – Guardian
The UK’s fruit and flower growers face an “existential threat” from new post-Brexit border checks that could damage business and affect next year’s crops, the country’s biggest farming body has said. The National Farmers’ Union (NFU) warned that changes to import rules in April, which will impose checks at the border for nearly all young plants coming into the country, could cause long delays and result in plants being damaged or destroyed. – Guardian
Britain’s stock market is tipped to outperform US and EU benchmarks this year as money managers across the City predict a bounceback for the unloved assets. British equities will deliver 9pc returns over 2024, Goldman Sachs has predicted, beating projected returns from the S&P 500, leading eurozone markets and Japanese stocks. – Telegraph
Soaring energy and raw material prices since Russia’s invasion of Ukraine are set to have increased losses at British Steel. Britain’s second biggest steelmaker warned in its delayed accounts for 2021, which were published only last week, that the war in eastern Europe had led to a period of “significant volatility in both the levels of the absolute price and cost, but also the level of steel margins”, which had contributed to the company making “significant losses” in 2022. – The Times
All eyes in the City this morning will turn to Compass and its share price after a report that the catering company is set to strike a multimillion-pound deal for a rival. The world’s largest catering group is said to be closing in on a £400 million-plus acquisition of CH&Co, according to Sky News. It would be Compass’s largest British purchase in years. – The Times
