London close: FTSE gains as Micron results lift mood; 3i Group surges

(Sharecast News) - London stocks enjoyed their highest close in two months on Thursday, led higher by 3i Group after a well-received update on the performance of its largest portfolio holding, and as solid results from Micron Tehnology lifted the mood.

The FTSE 100 ended 0.7% firmer at 10,529.89. Meanwhile, Brent crude was up 1.2% at $74.61 a barrel and West Texas Intermediate was 1.5% firmer at $71.42.

Oil had been lower earlier in the session as shipping through the Strait of Hormuz picked up, but prices fell late in the day following a Wall Street Journal report that Iran is pushing to make billions of dollars from the strait as the regime positions itself to manage the global oil artery it severed at the start of the war.

According to the WSJ, which cited officials familiar with the matter, Tehran estimates that charging for security, safety and environmental services in the strait would bring in $40bn a year in revenue for states involved. The idea, if implemented, would bring Tehran cash flow and control that it didn't command before the war, the WSJ noted.

Dan Coatsworth, head of markets at AJ Bell, said: "It was a solid day for UK shares as the FTSE 100 pushed ahead amid keen investor interest in banks, pharmaceuticals and industrial stocks.

"Investors celebrated Micron's storming results as it benefited from strong demand for memory chips in a supply-constrained market, meaning it has been able to charge more for its goods. On the flipside of the equation is the companies having to fork out more for vital components, including Apple which announced meaty price hikes."

Investors were also mulling the latest US PCE reading, which showed that inflation hit its highest level in May since April 2023. The PCE price index rose to 4.1%, up from 3.8% in April. Core PCE rose to 3.4% from 3.3%.

The PCE is the Federal Reserve's preferred gauge of inflation.

In equity markets, 3i Group surged to the top of the FTSE 100 as it hailed 3.3% like-for-like sales growth at Dutch discount retailer Action in the year to date and said it was set for a quarter of profit growth. Action is 3i's largest portfolio holding

EasyJet flew higher after it rejected a fresh �4.9bn approach from US suitor Castlelake but agreed to enter discussions. This was Castlelake's fourth approach.

Entain rose as it agreed to sell a 20% stake in its Central and Eastern Europe business to joint venture partner EMMA Capital for around �425m (�366m) as it begins a phased exit.

Moonpig advanced as the online greeting cards and gift retailer backed its outlook for 2027, reported a rise in full-year profit and revenue and lifted its dividend.

Raspberry Pi was boosted by Micron's earnings, while ITV gained after Sky agreed to buy its broadcast and streaming unit, according to Reuters.

On the downside, Experian, United Utilities and Metlen Energy all fell as they traded without entitlement to the dividend.

Domino's Pizza was knocked lower by an initiation at 'underweight' by JPMorgan.

Market Movers

FTSE 100 (UKX) 10,529.89 0.65%

FTSE 250 (MCX) 23,161.41 0.26%

techMARK (TASX) 5,833.49 0.10%

FTSE 100 - Risers

3i Group (III) 2,534.00p 11.48%

Barratt Redrow (BTRW) 294.00p 4.63%

Antofagasta (ANTO) 3,793.00p 3.92%

Abrdn (ABDN) 240.40p 3.62%

Persimmon (PSN) 1,128.50p 3.30%

SSE (SSE) 2,419.00p 3.02%

Hiscox Limited (DI) (HSX) 1,861.00p 2.82%

Barclays (BARC) 521.30p 2.78%

Entain (ENT) 569.60p 2.74%

Anglo American (AAL) 3,702.00p 2.49%

FTSE 100 - Fallers

London Stock Exchange Group (LSEG) 8,028.00p -3.04%

Flutter Entertainment (DI) (FLTR) 7,220.00p -2.88%

ICG (ICG) 1,670.00p -2.40%

BT Group (BT.A) 191.85p -2.14%

Lion Finance Group (BGEO) 11,000.00p -2.14%

United Utilities Group (UU.) 1,299.00p -1.96%

Experian (EXPN) 2,505.00p -1.80%

BAE Systems (BA.) 1,792.00p -1.78%

The Sage Group (SGE) 796.20p -1.51%

IG Group Holdings (IGG) 1,858.00p -1.48%

FTSE 250 - Risers

Vistry Group (VTY) 274.20p 6.78%

Genuit Group (GEN) 291.00p 6.75%

easyJet (EZJ) 574.20p 6.53%

AEP Plantations (AEP) 160.40p 5.53%

Raspberry PI Holdings (RPI) 767.50p 4.92%

Oxford Nanopore Technologies (ONT) 121.30p 4.57%

Harworth Group (HWG) 126.40p 4.46%

Shawbrook Group (SHAW) 343.50p 4.25%

Rank Group (RNK) 101.60p 4.21%

Telecom Plus (TEP) 773.00p 3.48%

FTSE 250 - Fallers

Ceres Power Holdings (CWR) 509.00p -10.62%

Partners Group Private Equity Limited. (EUR) (PEY) 6.92p -7.73%

Serco Group (SRP) 223.60p -4.28%

Domino's Pizza Group (DOM) 182.90p -3.94%

CMC Markets (CMCX) 449.50p -3.54%

Ocado Group (OCDO) 172.80p -2.98%

TR Property Inv Trust (TRY) 307.50p -2.84%

Man Group (EMG) 289.60p -2.36%

THG (THG) 29.60p -2.25%

Harbour Energy (HBR) 222.20p -2.20%