UK's FTSE 100 edges higher as investors assess corporate updates; Burberry rises
UK's FTSE 100 rose 0.1% as investors evaluated corporate updates and economic data. Burberry gained 3.5% after HSBC raised its price target. AJ Bell fell 6.7% due to cost warnings. Precious metal miners dropped 1.4%, while aerospace shares rose amid stalled Russia-Ukraine peace talks. Ofgem approved a £28 billion grid upgrade, impacting utilities shares. British investors sold £3 billion in equities in November, continuing a trend of net selling.
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FTSE 100 up 0.1% , FTSE 250 rises 0.3%
Burberry gains after HSBC raises PT
AJ Bell falls after FY results
Dec 4 (Reuters) - UK’s FTSE 100 ticked up on Thursday, with investors assessing corporate updates and economic data suggesting potential weakness, while Burberry gained after an HSBC price target raise on the luxury goods maker.
The blue-chip FTSE 100 (.FTSE) was up 0.1% by 11:15 GMT on Thursday, while the midcap FTSE 250 (.FTMC) added 0.3%.
S&P Global’s monthly purchasing managers’ index showed British construction activity contracted at its fastest pace since May 2020.
Meanwhile, the pace of job-shedding accelerated last month with the employment index at its lowest since August 2020. The survey’s gauge of optimism struck a nearly three-year low, with cost pressures rising slightly.
On the equities front, personal goods stocks (.FTNMX402040) led sectoral gains, adding 2.8%, with Burberry (BRBY.L) rising 3.5%.
Aerospace and defence shares (.FTNMX502010) were on track to gain for a third straight session after Russia-Ukraine peace talks stalled. Rolls-Royce (RR.L) and BAE Systems (BAES.L) were up more than 1%.
Precious metal miners (.FTNMX551030) dropped 1.4%, tracking bullion prices with Fresnillo (FRES.L) and Endeavour Mining (EDV.L) down more than 1.4% each.
British energy regulator Ofgem said on Thursday it had approved a 28 billion pound investment to upgrade the country’s grid capacity.
Utilities shares (.FTUB6510) fell, led by a 2.1% decline in power generator SSE (SSE.L) , while United Utilities (UU.L) , National Grid (NG.L) and Severn Trent (SVT.L) also came under pressure.
Among individual stocks, AJ Bell (AJBA.L) fell 6.7% after the investment platform warned of added costs and said the budget would add complexity to the individual savings account landscape.
Diageo (DGE.L) fell 0.8% after UBS cut the spirits maker’s price target to 1,850 pounds from 2,250 pounds.
Pharma giant AstraZeneca (AZN.L) fell 0.7%, while lender Barclays (BARC.L) rose 1.2%.
British investors sold equities worth 3 billion pounds in November, marking the sixth consecutive month of net selling, according to data from funds network Calastone.
