London’s leading share index has bounced back from a two-month low on Friday as investors’ appetite for risk was bolstered by strong corporate updates.
The FTSE 100 rose 53.26 points, or 0.7 per cent, to 7,344.37. Airtel Africa was the biggest riser, gaining 8¾p, or 7.8 per cent, to 118½p after the African mobile phone masts operator increased its interim dividend following a strong first half.
A profit upgrade from Pearson pushed the education group 17¼p, or 1.9 per cent, higher to 936¾p, while Frasers Group’s shares rose 11p, or 1.4 per cent, to 806p on the sale of its Missguided brand and intellectual property rights to the Chinese fast-fashion group Shein for an undisclosed sum.
The online estate agent Rightmove gained 12p, or 2.5 per cent, to 491p, boosted by Berenberg tipping it as a buy, and the precious metal miner Fresnillo gained 6¼p, or 1.1 per cent, to 556p on hopes of increased demand for metal due to increase stimulus in China, despite the gold price falling below $2,000 an ounce.
With the war between Israel and Hamas dominating headlines, investors moved into BAE Systems, Britain’s biggest defence company, whose shares advanced 22p, or 2 per cent, to £11.06. Other defensive favourites such as tobacco and consumer goods groups were also in demand. Shares in British American Tobacco were 47½p, or 2 per cent, higher at £24.50½, while the consumer goods company Reckitt improved 84p, or 1.5 per cent, to £55.36 and the healthcare company Haleon added 4¼p, or 1.3 per cent, to 325½p.
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Among a handful of fallers was NatWest, which gave up 2p, or 1 per cent, to 180¼p on the back of a double downgrade from Jefferies.
In the FTSE 250, up 151.55 points, or 0.9 per cent, at 17,017.84 on the approach to midday, shares in Ascential jumped 58¼p, or 27 per cent, to a seven-month high of 274p after the owner of the Cannes Lions festival said it had agreed to sell its digital commerce and consumer research units for a combined enterprise value of £1.4 billion.
