London close: Stocks rise, but gains limited amid geopolitical uncertainty

(Sharecast News) - London's blue chip index edged higher on Thursday, as a renewed upturn in oil prices pushed heavyweight energy stocks higher, offsetting weaknesses in the travel sector, with all eyes still firmly fixed on the Middle East.

Reports that Lebanon and Israel have agreed to a 10-day ceasefire also helped sentiment in late-afternoon trade. In a post on Truth Social, Donald Trump said that the leaders of the two nations signed off a temporary truce, beginning at 1700 EST (2100 BST).

The FTSE 100 was up 0.3% by the close at 10,589.99. Despite the positive finish, however, UK markets have moved broadly sideways since last Wednesday, trading within a narrow range as investors cautiously await progress in peace talks between the US and Iran.

Hopes for a potential deal between Washington and Tehran continued to build after Trump said the Iran war was "very close to over", claiming the Middle Eastern nation wanted to "make a deal very badly".

A White House official told CNBC that a second round of negotiations was under discussion, though nothing had yet been formally scheduled. The US and Iran were also reportedly in indirect talks about a potential two-week extension to the ceasefire agreement that is due to expire on 22 April.

According to Bloomberg, citing a person familiar with the matter, an extension is being considered to allow more time to negotiate a peace deal, reducing the risk of renewed fighting despite an intensifying standoff over the Strait of Hormuz.

However, Brent crude was up 3.5% at $98.26 a barrel by the close of play in London, edging back towards the $100 level reached at the start of the week, after the US Pentagon chief Pete Hegseth pledged to continue the blockade of Hormuz for "as long as it takes", and that the US was "locked and loaded" to resume attacking Iran's energy infrastructure if necessary.

On home shores, figures from the Office for National Statistics showed the economy grew by more than expected in February, on the back of broad-based growth across the country's dominant services sector. GDP grew by 0.5% in the three months to February, ahead of consensus for a 0.2% uplift. Growth in January was also upwardly revised to 0.3% from 0.2%.

Energy stocks gain, Intertek jumps

Blue chips BP and Shell were rising strongly on the FTSE 100, along with smaller peers Harbour Energy and EnQuest, as the price of oil moved higher.

In contrast, the rising oil price was putting travel names under renewed pressure, with easyJet, IAG and InterContinental Hotels firmly in the red.

Intertek surged after Swedish private equity firm EQT confirmed it had made a takeover proposal to the inspection, product testing and certification company that was rejected.

Entain rallied as the Ladbrokes owner reaffirmed its full-year outlook following robust volume growth through the first quarter.

Supermarket giant Tesco gained as it widened guidance for 2026/27 to reflect increased uncertainty caused by the US-Israel war on Iran but posted a better-than-expected rise in full-year adjusted operating profit and hailed its highest market share for over a decade.

Antofagasta and Convatec both fell as they traded without entitlement to the dividend, with the former also under pressure after Berenberg downgraded the stock from 'buy' to 'hold'.

Market Movers

FTSE 100 (UKX) 10,589.99 0.29%

FTSE 250 (MCX) 22,779.50 0.50%

techMARK (TASX) 5,938.46 0.37%

FTSE 100 - Risers

Intertek Group (ITRK) 4,755.00p 8.98%

Entain (ENT) 620.20p 6.02%

Halma (HLMA) 4,408.00p 5.35%

Pearson (PSON) 1,079.50p 4.91%

Tesco (TSCO) 494.05p 4.70%

The Sage Group (SGE) 903.00p 3.94%

BP (BP.) 584.00p 3.90%

Rightmove (RMV) 450.50p 3.11%

London Stock Exchange Group (LSEG) 9,510.00p 2.81%

Experian (EXPN) 2,810.00p 2.72%

FTSE 100 - Fallers

Antofagasta (ANTO) 3,770.00p -3.08%

Airtel Africa (AAF) 350.40p -2.88%

Rolls-Royce Holdings (RR.) 1,250.20p -2.84%

SSE (SSE) 2,644.50p -2.36%

Babcock International Group (BAB) 1,234.50p -2.30%

International Consolidated Airlines Group SA (CDI) (IAG) 386.20p -2.20%

Convatec Group (CTEC) 236.60p -1.99%

Flutter Entertainment (DI) (FLTR) 8,062.00p -1.68%

BAE Systems (BA.) 2,216.50p -1.55%

Centrica (CNA) 207.70p -1.47%

FTSE 250 - Risers

Morgan Sindall Group (MGNS) 4,808.00p 7.27%

Ceres Power Holdings (CWR) 426.60p 6.23%

Raspberry PI Holdings (RPI) 650.00p 4.59%

Close Brothers Group (CBG) 467.40p 4.52%

Baltic Classifieds Group (BCG) 208.40p 3.48%

IP Group (IPO) 60.40p 3.42%

Baillie Gifford Japan Trust (BGFD) 910.00p 3.41%

GB Group (GBG) 213.00p 3.30%

THG (THG) 37.78p 3.28%

Kainos Group (KNOS) 851.50p 3.27%

FTSE 250 - Fallers

Jupiter Fund Management (JUP) 152.40p -5.69%

easyJet (EZJ) 371.60p -4.96%

Applied Nutrition (APN) 215.50p -4.86%

Ashmore Group (ASHM) 211.40p -4.77%

Dunelm Group (DNLM) 809.00p -4.60%

Impax Environmental Markets (IEM) 433.50p -3.67%

NB Private Equity Partners Ltd. (NBPE) 1,438.00p -3.62%

Rathbones Group (RAT) 2,040.00p -3.55%

Quilter (QLT) 180.10p -3.22%

Wizz Air Holdings (WIZZ) 967.00p -2.96%