Footsie record-breaking bid knocked off course
THE FTSE 100 missed the opportunity to reclaim its all-time high this week after turbulent trading and rocky results scuppered hopes.
The large- cap index gained 0.30pc, or 23.30 points, to 7770.59 yesterday, recouping some of Thursday’s losses, but slumped about 1pc over the week as wider economic woes weigh heavy on investor confidence.
The UK’s premier index flew out of the blocks in early January, rising by more than 5pc and putting it within touching distance of a record closing high of 7877 but for now the champagne is still on ice.
Among the risers was energy giant SSE, which climbed to the top of the footsie in early morning trade. Not only did the British power firm raise profit expectations following price hikes, but it also recommended a full-year dividend of 85.7p per share for fiscal 2023 with another 5pc increase in 2025 and 2026.
Shares were up 2.9pc, or 48.5p, to 1750.5p, representing a twomonth high for the energy giant.
Richard Hunter, head of markets at Interactive Investor, said: ‘UK markets continued to fly the flag, dodging the recessionary bullet fears for the time being.
‘The FTSE 100 was buoyed by a return to risk-on behaviour, with the miners and oil majors especially in demand.’
Among miners, Rio Tinto rose 1pc, or 62p, to 6213p, and Anglo American gained 0.1pc, or 2.5p, to 3566p. Energy giant Shell inched up 0.1pc, or 2.5p, to 2363p and BP lifted 0.2pc, or 1.15p, to 475.85p.
The top index also managed to shrug off weak retail sales figures, which showed a 1pc slump in December, against expectations for a rise of 0.5pc. The ONS said December’s sales volumes were 1.7pc below their pre-pandemic level in February 2020.
But this did not weigh the Londonlisted retailers down. JD Sports soared, still clearly feeling the afterglow of last week’s news that profits were set to top £1bn in the pre-Christmas period.
The trainer and tracksuit retailer gained 2.8pc, or 4.25p, to 157p.
And despite Covid curbs in China and tightening consumer spend, luxury retailer Burberry was another top mover, climbing 2.4pc, or 55p, to 2358p, as investors appear unfazed by the downbeat retail figures.
Meanwhile, Asos led the way on the FTSE 250 (up 0.66pc, or 128.52 points, to 19702.63) after Bank America said it was now a buyer of the fast-fashion retailer, as well as rival Boohoo.
Asos soared by 11.1pc, or 78p, to 778p and Boohoo shot up 8.5pc, or 3.59p, to 46p.
Victoria Scholar, head of investment at Interactive Investor, said: ‘ The UK large- cap index has sharply outperformed the mid- cap FTSE 250 index over the last year which has been much more closely correlated to the UK’s economic and political uncertainty.
‘The FTSE 100 is an outwardlooking index which has enjoyed gains thanks to certain sectors which have benefitted from rising energy prices and interest rates.’
But the power appeared to lay in the hands of brokers yesterday.
Upgrades boosted both 3i Group, the private equity firm, and Flutter Entertainment, the gambling giant that owns Paddy Power and Betfair, by a respective 3.3pc, or 47p, to 1462.5p and 2.5pc, or 300p, to 12,565p.
But AstraZeneca also faced the wrath after analysts at Stifel warned that the pharmaceutical firm may have a more difficult year ahead than expected.
The Anglo- Swedish pharma giant could lose as much as £2.4bn in sales of Covid-19 products, including vaccine and treatments, between 2022 and 2023, the investment bank said. Shares fell 1.9pc, or 220p, to 11,200p.