London close: Stocks erase early gains after late oil price rally

(Sharecast News) - UK stocks were rangebound on Friday, finishing the week in subdued fashion after erasing gains by the close of play, with markets flatlining at a five-week high with all eyes focused on geopolitical developments in the Middle East.

The FTSE 100 finished more or less flat for the second straight day, slipping just 2.95 points (-0.03%) to finish at 10,600.53, after hitting an earlier high of 10,657.56 (+0.50%).

Limiting upside late on was another tick-up in oil prices, with Brent crude - having spent most of the day treading water - rising 1.4% to $97.25 a barrel in the final hour of trade.

"Despite coming off by more than 10% during the week, crude prices remain elevated - close to $100 per barrel - as ongoing Middle East tensions, including Israeli strikes in Lebanon and the continued closure of the Strait of Hormuz, keep supply risks elevated in spite of a US-Iran two-week ceasefire announcement," said Axel Rudolph, chief technical analyst at IG.

Donald Trump on Friday criticised Iran's handling of the oil flow through the Strait of Hormuz, saying on Truth Social that Tehran was doing a "very poor job, dishonourable some would say" in allowing shipments through the channel. "That is not the agreement we have!" he said.

Trump also wrote a post highlighting reports that Iran is charging fees to tankers going through the Hormuz Strait. He said: "They better not be and, if they are, they better stop now!"

"The situation remains fragile, with shipping still largely halted, Saudi output reduced by around 600,000 barrels per day following attacks, and key infrastructure damaged, while diplomatic efforts continue with further talks scheduled," Rudolph said.

Investors were also digesting a key inflation report from the US released in the afternoon session, which showed that inflation surged to 3.3% year-on-year in March. The figure, up from 2.4% in February and January, marked the highest level since May 2024 and "supports current expectations of a rate cut from the Federal Reserve by year end", according to Kathleen Brooks, research director at XTB.

Convatec provides a boost

Convatec was the high riser on Friday, one day after it held a capital markets day, where it unveiled how it plans to achieve its recently increased organic growth guidance. Shares fell slightly on Thursday after the medical products and technology company outlined its new 'Accelerate' strategy, but pushed to a one-month high a day later as investors dug through the details. Sentiment was helped by positive broker commentary following the event, with Bank of America, Berenberg, Jefferies and Deutsche Bank all reiterating their 'buy' recommendations.

Consumer-focused stocks gained across the board, continuing their strong performance over the past week as the macroeconomic outlook improved, with Kingfisher, Burberry, AO World and Trustpilot among those sharply higher.

Banks were also broadly higher, with Standard Chartered, NatWest, HSBC and Barclays putting in solid gains.

Copper miner Antofagasta was also in demand as copper prices gained 2.1% to $5.8840 a pound, heading back towards the record highs of $6+ seen in February.

Metlen Energy and Metals fell for the second straight session after posting a 48% drop in annual profits due to project delays.

Defence companies BAE Systems and Babcock were tracking lower as investors continued to digest developments in the Middle East with optimism about a potential peace deal eroding the demand outlook for weapons and military equipment.

Market Movers

FTSE 100 (UKX) 10,600.53 -0.03%

FTSE 250 (MCX) 22,351.02 0.65%

techMARK (TASX) 5,840.01 -0.13%

FTSE 100 - Risers

Convatec Group (CTEC) 234.00p 4.46%

Antofagasta (ANTO) 3,788.00p 3.02%

Kingfisher (KGF) 308.20p 2.70%

Burberry Group (BRBY) 1,157.40p 2.12%

ICG (ICG) 1,673.00p 2.07%

Croda International (CRDA) 2,967.00p 2.06%

IMI (IMI) 2,818.00p 2.03%

Halma (HLMA) 4,163.00p 1.96%

Coca-Cola HBC AG (CDI) (CCH) 4,478.00p 1.93%

Fresnillo (FRES) 3,596.00p 1.90%

FTSE 100 - Fallers

Metlen Energy & Metals (MTLN) 32.28p -8.81%

Melrose Industries (MRO) 526.20p -4.01%

BAE Systems (BA.) 2,194.00p -3.31%

Compass Group 11 (CPG) 27.57p -1.85%

Babcock International Group (BAB) 1,257.50p -1.76%

Hiscox Limited (DI) (HSX) 1,577.00p -1.68%

SEGRO (SGRO) 695.40p -1.33%

The Sage Group (SGE) 817.60p -1.23%

BP (BP.) 574.10p -1.12%

Pearson (PSON) 997.00p -1.04%

FTSE 250 - Risers

Wizz Air Holdings (WIZZ) 992.50p 7.18%

AO World (AO.) 95.00p 6.98%

Trustpilot Group (TRST) 226.00p 6.60%

Foresight Group Holdings Limited NPV (FSG) 383.00p 4.79%

Aston Martin Lagonda Global Holdings (AML) 42.10p 4.73%

Greencoat UK Wind (UKW) 105.30p 4.26%

Tate & Lyle (TATE) 359.30p 4.24%

Foresight Environmental Infrastructure Limited (FGEN) 72.00p 3.45%

Hochschild Mining (HOC) 652.00p 3.33%

Spire Healthcare Group (SPI) 152.40p 3.25%

FTSE 250 - Fallers

Ceres Power Holdings (CWR) 307.00p -4.84%

B&M European Value Retail (BME) 174.50p -4.64%

Gamma Communications (GAMA) 826.20p -3.41%

Ocado Group (OCDO) 187.60p -2.57%

The Schiehallion Fund Limited NPV (MNTN) 1.90p -2.44%

GB Group (GBG) 187.60p -2.34%

Avon Technologies (AVON) 1,732.00p -2.15%

QinetiQ Group (QQ.) 477.10p -1.95%

AJ Bell (AJB) 520.00p -1.89%

Close Brothers Group (CBG) 413.40p -1.85%