FTSE 100 rebounds with positive session after two days of losses
The blue-chip index rose after new data showed growth in the UK’s services sector slowed last month.
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Your support makes all the difference.The FTSE 100 ticked up on Wednesday, rebounding from two consecutive days of losses.
The blue-chip index rose 25 points to 8257 on Wednesday, a 0.18% rise, with healthy gains for finance firm St James’s Place, as well as pharma companies AstraZeneca and GSK.
Fallers included B&M, JD Sports and British Gas owner Centrica, which said the year’s performance so far has been in line with expectations against a more normalised trading environment.
The rise came as new data showed growth in the UK’s services sector slowed last month as inflation in the sector dropped to its lowest for three years.
The S&P Global UK services PMI survey scored 52.9 in May, down from 55.0 in April. The reading was in line with predictions by economists but represents the slowest rate of expansion since November last year.
Miners and banks did their best to draw in the storm clouds but they only mustered up a light drizzle rather than a proper soaking
Dan Coatsworth, investment analyst at AJ Bell, said: “The FTSE 100 had a see-saw session but managed to close the day higher.
“Miners and banks did their best to draw in the storm clouds but they only mustered up a light drizzle rather than a proper soaking.
“Pharma giants AstraZeneca and GSK came to the rescue and kept the blue-chip index in positive territory.”
Sterling fell against the dollar, down 0.021% at 1.276 US dollars as markets closed in London. It was 0.14% up against the euro, at 1.1753 euros.
Elsewhere in Europe, Germany’s Dax moved upwards, finishing 0.89% up, while France’s CAC 40 ended up 0.87%.
Stateside, the S&P 500 had a strong start at 0.68% up as markets closed in London, while the Dow Jones was up 0.16%.
In company news, budget retailer B&M said it is planning to roll out hundreds of new stores across the UK, after seeing its yearly sales grow as cash-squeezed consumers hunted for deals.
B&M European Value Retail, which sells a range of household products, DIY, food and clothing, said the past year was a turning point in its ambitious expansion plans.
Total group revenues jumped by a tenth in the year to the end of March, compared with the previous year, the company reported.
But shares fell 6.5% after it gave less clarity than expected on its outlook and “volume-led growth”.
Centrica said its household supply arm will be back to a “sustainable” level of profit in 2024, two years earlier than planned, as energy markets begin to return to normal.
The energy giant, which is holding its annual general meeting (AGM) on Wednesday, cheered a “more normalised external environment” as energy markets recover after the crisis and price shock caused by Russia’s war with Ukraine.
Centrica said its retail supply and optimisation businesses would hit their “medium-term sustainable adjusted operating profit” range in 2024, two years ahead of target.
Shares fell 4.8% because shareholders believe the normalised market environment will lead to smaller profits.
The price of a barrel of Brent crude oil was up 0.35% to 76.52 US dollars as markets were closing in London.
The biggest risers on the FTSE 100 were St James’s Place, up 18p to 520p, Smith & Nephew, up 32.8p to 1028p, Rentokil, up 11p to 435p, Ocado, up 8.5p to 362.2p, and GSK, up 35.5p to 1650.5p.
The biggest fallers on the FTSE 100 were B&M, down 39.8p to 506.6p, Centrica, down 6.85p to 135.4p, JD Sports, down 6p to 126.3p, Sainsburys, down 4.6p to 274p, and Lloyds, down 0.9p to 54.74p.