London close: FTSE ends flat after lacklustre session; IPF surges on takeover

(Sharecast News) - London stocks ended an unsurprisingly lacklustre session flat on Monday, with little to move markets in the lull between Christmas and New Year.

The FTSE 100 closed steady at 9,866.53.

Corporate news was scarce, as expected, but International Personal Finance surged after saying it had accepted a takeover offer from BasePoint Capital in a deal worth �543m. IPF shareholders will get 235p a share in cash, a 31% premium to the closing price when talks between the two specialist lenders started in July.

Chair Stuart Sinclair said: "The IPF board has been considering its options to ensure that the market value better reflects the business's opportunities and prospects, having consistently traded at a substantial discount to comparable international businesses over the past ten years.

"Whilst the board continues to believe in the strategy and long-term prospects of IPF on a standalone basis, we recognise that the acquisition allows IPF shareholders to monetise their entire investment for cash at a fair price. We believe that the business will benefit from BasePoint's ownership and its commitment to fulfil IPF's purpose of building a better world through financial inclusion."

On the downside, defence firms Babcock and Rolls-Royce fell after US president Donald Trump said a deal to end the war in Ukraine was "closer than ever", although "thorny" questions remained. Following talks with Ukrainian President Zelensky in Florida, Trump said a draft agreement to end the war was nearly "95% done".

Elsewhere, Hargreaves Lansdown said three of its five "shares to watch in 2026" were Marks & Spencer, Novo Nordisk and Nvidia.

Darren Nathan, head of equity research at HL, said clothing and homeware retailer M&S goes into 2026 looking to rebuild after a tough year.

"A cyberattack hit online sales, mainly in Fashion, Home & Beauty, but bosses expect systems to be back to normal by spring," he noted. "The Food division keeps winning customers, and if spending on digital and margins pays off, profits could bounce back."

Nathan said Danish pharmaceutical firm Novo Nordisk had a rough 2025 as supply was tight, rivals pushed harder, and pricing came under pressure in diabetes and obesity care.

"Even so, demand is still huge," he said. "More factory capacity, stronger action against illegal copy drugs and the recent approval of its oral weightloss pill could lift confidence."

Finally, he said US tech giant Nvidia remains a key name in the AI buildout. "Competition is rising, and some big buyers want more than one supplier, but the firm's fast pace of new chips and strong position in advanced computing keep it central to big tech spending."