London close: FTSE 100 rises for second day as defensives shine

(Sharecast News) - London's blue chips rose for the second day on Friday, settling above the 10,600 mark for the first time in eight sessions, though gains were modest as sell-offs across global equity markets dampened sentiment.

The FTSE 100 finished up 0.3% at 10,600.37, ending the week around 1% higher after rising in four of the past five days.

The UK index was bucking trends seen across global markets, owing to its minimal exposure to the technology sector, with major indices posting moderate losses across Europe and the US, while Asian stocks tanked overnight as chipmakers dropped.

"The session had a familiar shape. Middle East escalation continued to dominate the macro backdrop, supporting energy and utilities while weighing on rate-sensitive financials and consumer-facing names exposed to tourism and discretionary spending," said Patrick Munnelly, partner of market strategy at Tickmill Group.

"The result was a narrow, sector-driven market rather than a broad move in either direction."

Sentiment was also hit by simmering geopolitical tensions in the Middle East, which kept oil prices elevated and added to inflation worries and fears of interest rate rises this year.

Brent crude jumped 3.0% to $86.73 a barrel as US troops boarded a vessel in the Strait of Hormuz as part of its renewed blockade of the waterway and crippled another trying to run the gauntlet.

Defensives on the rise

Defensive stocks were on the rise as the global tech sell-off prompted investors to seek safe havens. Utilities Severn Trent, National Grid, United Utilities and SSE were all higher, along with tobacco stocks British American Tobacco and Imperial Brands and telecoms group BT.

Shell and BP were also high risers amid firmer oil prices, with the latter supported by the news that it has agreed terms for ConocoPhillips to buy a 42% interest in its Iraq oil fields.

On the downside, Burberry slumped despite reporting a 5% rise in first-quarter sales driven by strong performances in the Americas and China which offset a decline in Europe and the Middle East due to the Iran war.

GSK also fell after the pharma company announced it was stopping the development of a refractory chronic cough drug after unsuccessful results from a late-stage clinical trial.

Market Movers

FTSE 100 (UKX) 10,600.37 0.27%

FTSE 250 (MCX) 23,604.83 -0.47%

techMARK (TASX) 5,917.03 -0.13%

FTSE 100 - Risers

National Grid (NG.) 1,257.00p 3.33%

British American Tobacco (BATS) 4,669.00p 3.32%

Severn Trent (SVT) 3,066.00p 2.89%

BAE Systems (BA.) 1,880.00p 2.51%

SSE (SSE) 2,488.00p 2.43%

Shell (SHEL) 3,236.00p 2.41%

Kingfisher (KGF) 304.20p 2.39%

BT Group (BT.A) 197.95p 2.33%

Imperial Brands (IMB) 2,870.00p 2.32%

Associated British Foods (ABF) 2,052.00p 2.29%

FTSE 100 - Fallers

Burberry Group (BRBY) 1,049.00p -6.38%

Flutter Entertainment (DI) (FLTR) 7,714.00p -4.62%

Scottish Mortgage Inv Trust (SMT) 1,359.00p -3.58%

Autotrader Group (AUTO) 498.30p -3.51%

Antofagasta (ANTO) 3,491.00p -2.70%

St James's Place (STJ) 1,080.00p -2.57%

3i Group (III) 2,576.00p -2.53%

Anglo American (AAL) 3,400.00p -2.44%

Pershing Square Holdings Ltd NPV (PSH) 3,814.00p -2.21%

GSK (GSK) 1,916.50p -2.02%

FTSE 250 - Risers

Ocado Group (OCDO) 165.20p 3.77%

Harbour Energy (HBR) 233.40p 3.37%

Chemring Group (CHG) 557.00p 3.15%

RIT Capital Partners (RCP) 2,575.00p 3.00%

Supermarket Income Reit (SUPR) 88.05p 2.98%

Hays (HAS) 54.50p 2.83%

Foresight Environmental Infrastructure Limited (FGEN) 88.20p 2.80%

Bridgepoint Group (Reg S) (BPT) 322.60p 2.74%

Pagegroup (PAGE) 163.90p 2.25%

Partners Group Private Equity Limited. (EUR) (PEY) 7.50p 2.18%

FTSE 250 - Fallers

W.A.G Payment Solutions (EWG) 97.70p -9.54%

Raspberry PI Holdings (RPI) 668.00p -8.18%

Edinburgh Worldwide Inv Trust (EWI) 249.00p -4.60%

Seraphim Space Investment Trust (SSIT) 151.20p -4.30%

CMC Markets (CMCX) 701.00p -3.97%

Allianz Technology Trust (ATT) 674.00p -3.58%

THG (THG) 30.68p -3.52%

Fidelity China Special Situations (FCSS) 251.00p -3.46%

Ceres Power Holdings (CWR) 367.60p -3.42%

Fidelity Emerging Markets Limited Ptg NPV (FEML) 1,368.00p -3.25%