London close: FTSE rises as Melrose Industries, Vistry surge

(Sharecast News) - London stocks rose on Tuesday as fresh US sanctions on Iran turned out to be less severe than expected.

The FTSE 100 closed up 0.3% at 10,886.16, while Brent crude was down 3.7% at $88.76 a barrel and West Texas Intermediate was 3.3% lower at $82.23.

Patrick Munnelly at Tickmill Group said: "The FTSE 100 extended its winning streak to a sixth consecutive session on Tuesday, as broader markets cheered a less-disruptive-than-feared global setup following the announcement of wider US sanctions on Iran.

"Investor attention increasingly shifted toward upcoming US CPI inflation data, Federal Reserve Chair Kevin Warsh's scheduled address at the Jackson Hole summit, and chipmaker Nvidia's quarterly earnings report on Wednesday, widely considered a key barometer for the artificial intelligence trade."

In equity markets, Melrose Industries surged as it said the Orange County District Attorney has now closed its criminal investigation into an incident at the GKN Aerospace Garden Grove facility with no charges. Richard Hunter, head of markets at Interactive Investor, said "the decision removes a raft of uncertainty which had been overhanging the shares".

Melrose also announced that will launch a $100m claims programme for residents and businesses affected by the May evacuation, after a chemical tank containing thousands of gallons of methyl methacrylate overheated and forced authorities to clear a wide area for several days.

Next was boosted by an upgrade to 'buy' from 'neutral' at Citi, while Marks & Spencer gained after the same outfit lifted its price target to 470p from 390p.

Jupiter Fund Management rallied after Berenberg initiated coverage of the shares with a 'buy' rating, highlighting a return to positive flows. "While it remains difficult to predict flows with any kind of certainty, with investor sentiment constantly shifting on geopolitical news, we believe that Jupiter has a diverse, attractive range of funds that should deliver growth," it said.

Housebuilder Vistry shot to the top of the FTSE 250 after securing initial funding of £350m as part of the government's £39bn Social and Affordable Homes Programme (SAHP).

Vistry said it was the largest award possible in this phase and significantly in excess of the first award received under the previous programme. It will enable the company to deliver over 3,000 affordable homes, well ahead of what was possible under the first phase of the last programme.

Market Movers

FTSE 100 (UKX) 10,886.16 0.29%

FTSE 250 (MCX) 24,856.05 0.56%

techMARK (TASX) 6,186.00 0.58%

FTSE 100 - Risers

Melrose Industries (MRO) 510.20p 10.43%

AstraZeneca (AZN) 12,476.00p 3.02%

Next (NXT) 15,635.00p 2.36%

International Consolidated Airlines Group SA (CDI) (IAG) 441.90p 2.24%

Anglo American (AAL) 4,203.00p 2.06%

Persimmon (PSN) 1,184.00p 2.02%

Rolls-Royce Holdings (RR.) 1,530.00p 1.99%

Admiral Group (ADM) 4,072.00p 1.80%

Spirax Group (SPX) 7,160.00p 1.78%

Computacenter (CCC) 5,190.00p 1.76%

FTSE 100 - Fallers

Standard Chartered (STAN) 2,140.00p -2.51%

Diageo (DGE) 1,735.50p -2.00%

Compass Group 11 (CPG) 30.80p -1.69%

British American Tobacco (BATS) 4,133.00p -1.45%

Smith & Nephew (SN.) 1,068.00p -1.29%

Relx plc (REL) 2,618.00p -1.28%

St James's Place (STJ) 1,183.00p -1.13%

3i Group (III) 2,904.00p -1.02%

BP (BP.) 528.60p -0.96%

Pearson (PSON) 1,214.50p -0.86%

FTSE 250 - Risers

Vistry Group (VTY) 312.40p 16.31%

Oxford Nanopore Technologies (ONT) 183.00p 9.78%

Ocado Group (OCDO) 246.80p 5.65%

Hays (HAS) 76.20p 5.10%

XP Power Ltd. (DI) (XPP) 1,812.00p 4.50%

Jupiter Fund Management (JUP) 171.40p 4.26%

Keller Group (KLR) 2,972.00p 3.99%

PPHE Hotel Group Ltd (PPH) 1,640.00p 3.93%

Discoverie Group (DSCV) 781.00p 3.03%

Aston Martin Lagonda Global Holdings (AML) 34.72p 2.84%

FTSE 250 - Fallers

Dr. Martens (DOCS) 78.80p -2.72%

WPP (WPP) 392.20p -1.93%

Kainos Group (KNOS) 1,230.00p -1.91%

Playtech (PTEC) 404.60p -1.84%

Grainger (GRI) 175.50p -1.74%

Globaldata (DATA) 82.90p -1.54%

Ninety One (N91) 211.20p -1.40%

ICG Enterprise Trust (ICGT) 1,466.00p -1.35%

Johnson Matthey (JMAT) 2,238.00p -1.32%

Bridgepoint Group (Reg S) (BPT) 316.60p -1.25%