Relief as FTSE rebounds from Monday mayhem
London stocks rebounded in a much-needed rally following a bloodbath on global markets at the start of the week.
The FTSE 100 was up 0.37pc, or 26.64 points, at 7243.22 while the FTSE 250 climbed 0.41pc, or 78.24 points, to 19384.96. European bourses followed suit with Germany’s dax rising 1.15pc and France’s CAC 40 index adding 0.5pc.
However, the rally lost steam on Wall Street with the US markets seeing a more mixed performance despite early gains.
only the S&P 500 edged up, by just 0.2pc, while the tech-heavy nasdaq closed down 0.4pc and the dow Jones Industrial Average fell 0.26pc.
despite the mediocre showing in the US, the uptick in London provided some respite in a bleak year so far for global stock markets, which have been battered by a cocktail of worries including inflation, rising interest rates, new Covid-19 outbreaks in China and the war in Ukraine.
defensive stocks – which are perceived to provide steady earnings and dividends whatever the weather – helped lead the charge higher in London, with tobacco firm Imperial Brands up 1.5pc, or 24p, to 1676.5p while BAT gained 0.1pc, or 4.5p, to 3306.5p.
The two groups were boosted by news that US-based rival Philip Morris, the maker of Marlboro cigarettes, was close to securing a £13bn takeover of nicotine pouch maker Swedish Match, sparking chatter of a potential bidding war.
dividend payers rose as investors sought out better returns following the latest sell-off, with consumer goods giant Unilever adding 1.8pc, or 64.5p, to 3700.5p and housebuilder Barratt Developments up 2.6pc, or 12p, to 471.1p. ‘The narrative has gone from “how can I make money?” to “how can I protect my money?”’ said AJ Bell investment director Russ Mould.
‘Investors are increasingly favouring stocks with generous dividends as the trickle of cash payments is at least one form of positive return on an investment.’
other notable blue-chip risers were engineer Melrose (up 3.8pc, or 4.05p, to 111.65p), industrial software group Aveva (up 1.9pc, or 40p, to 2117p) and packaging giant Smurfit Kappa (up 2pc, or 65p, to 3288p).
Among the fallers, telecoms giant Airtel Africa dropped 2.7pc, or 3.9p, to 140.2p while cybersecurity specialist Avast lost 2pc, or 10.1p, to 499.3p.
Banking stocks gained amid hopes a continued rise in interest rates will boost profits.
HSBC was lifted 0.6pc, or 3p, to 495.7p, Standard Chartered rose 1.4pc, or 7.4p, to 554.4p and Lloyds jumped 0.6pc, or 0.25p, to 42.59p.
NatWest and Barclays enjoyed gains in early trading but both closed down, the former by 0.2pc, or 0.5p, to 203.6p and the latter by 1.6pc, or 2.34p, to 143.64p.
Engineering group Renishaw slipped 3.3pc, or 136p, to 4054p after it flagged rising costs as a result of surging energy prices and hiring more staff. The news overshadowed a strong trading update which saw the firm’s profits jump 47pc year-on-year to £124m in the nine months to the end of March.
Budget carrier Wizz Air revealed it was pondering an expansion into Saudi Arabia after signing an agreement with the kingdom’s investment ministry.
The deal comes as the country looks to triple passenger traffic by 2030 in a bid to boost its aviation and tourism markets. Wizz Air shares, however, edged down 0.7pc, or 21p, to 2881p.
Iron ore miner Ferrexpo rose 2.4pc, or 3.3p, to 140p after it announced a final dividend despite the ongoing crisis in Ukraine. The payment will be around 5p per share, although this was 50pc lower than the sum paid out the previous year.