(Sharecast News) - UK stocks fell sharply on Thursday as investors took profits following the recent rally, as optimism regarding a potential US-Iran peace deal began to fade.
The FTSE 100 finished 1.6% lower at 10,276.95, pulling back sharply after a 2.2% jump the previous session.
Having rallied strongly over the past two sessions, bouncing back from their sharp selloff at the beginning of the week, there's been some evidence of profit-taking today. Investors appear to be expressing some caution and taking some risk off the table as yesterday's euphoria on hopes of a quick end to the US/Iran war start to fade," said David Morrison, senior market analyst at Trade Nation.
Sentiment got a boost on Wednesday, with stock markets surging and oil prices plunging following reports the US and Iran were close to agreeing on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.
Trump's tone soured somewhat since then, however, with the US president saying that a deal with Tehran was a "big assumption" and that if it does not agree, US bombing will resume "at a much higher level and intensity than it was before".
Nevertheless, oil prices kept falling on Thursday. Brent crude was down 2.4% at $98.81 a barrel by the close in London, extending losses after a 7.8% plunge the previous session, and is set to finish below the $100 mark for the first time since 23 April.
On home shores, meanwhile, local elections were in focus. Matt Britzman, senior equity analyst at Hargreaves Lansdown, said "expectations of a bruising result for Labour look firmly baked in". He added: "A poor showing would pile more pressure on Starmer, leaving investors to weigh whether political pressure starts to translate into a different fiscal direction for the UK."
Flutter slumps after results; JD Sports surges
Flutter Entertainment tumbled as it cut its guidance for full-year revenue and adjusted EBITDA, partly due to unfavourable sports results, and announced the departure of Amy Howe, chief executive of its US business.
Relx and Admiral were weaker as they traded without entitlement to the dividend.
Centrica slumped as the British Gas owner cautioned that full-year retail EBITDA was expected to be towards the lower end of its guidance range of 500m to 800m. It also announced the acquisition of the Severn Combined-Cycle Gas Turbine power station from the Calon Energy Group for about 370m.
BAE Systems was weaker even as the weapons maker reiterated annual guidance of 9% - 11% earnings growth as regional wars continued to boost its order book.
On the upside, JD Sports surged despite a warning that current-year profits would be lower as it continued to wrestle with muted market growth due to a weaker spending outlook for consumers and uncertainty caused by the Iran war.
Autotrader shares motored ahead following a Sky News report that activist investor Palliser Capital has started building a stake the classifieds company.
Hiscox rose as the insurer posted a 10.2% jump in first-quarter contract written premiums, pointing to accelerating momentum in the retail segment.
InterContinental Hotels rose as it posted better-than-expected first-quarter revenue per available room and backed its expectations for the full year. Global RevPAR grew 4.4%, ahead of expectations for a 3.3% increase.
Precious metal miners Fresnillo and Endeavour outperformed as gold and silver prices rose 1.2% and 5.5% respectively on the back of a weaker US dollar.
Meanwhile, Helios Towers jumped as it raised its 2026 guidance after a strong first quarter, as tenancy growth drove double-digit increases in revenue and adjusted EBITDA.
Market Movers
FTSE 100 (UKX) 10,276.95 -1.55%
FTSE 250 (MCX) 22,882.72 0.22%
techMARK (TASX) 5,911.28 -0.81%
FTSE 100 - Risers
Fresnillo (FRES) 3,663.00p 7.60%
JD Sports Fashion (JD.) 73.00p 7.35%
Hiscox Limited (DI) (HSX) 1,634.00p 5.42%
Autotrader Group (AUTO) 520.80p 4.12%
Lion Finance Group (BGEO) 11,580.00p 3.49%
Antofagasta (ANTO) 3,898.50p 2.10%
InterContinental Hotels Group (IHG) 148.05p 1.72%
Burberry Group (BRBY) 1,230.20p 1.52%
Pershing Square Holdings Ltd NPV (PSH) 4,176.00p 1.51%
International Consolidated Airlines Group SA (CDI) (IAG) 396.20p 1.38%
FTSE 100 - Fallers
Relx plc (REL) 2,462.00p -6.21%
Admiral Group (ADM) 3,165.00p -5.41%
Centrica (CNA) 198.70p -5.32%
BAE Systems (BA.) 1,991.80p -4.68%
Smiths Group (SMIN) 2,522.00p -3.00%
Imperial Brands (IMB) 2,752.50p -2.93%
Shell (SHEL) 3,119.00p -2.88%
Land Securities Group (LAND) 585.50p -2.82%
Mondi (MNDI) 785.00p -2.75%
Severn Trent (SVT) 3,133.00p -2.67%
FTSE 250 - Risers
Helios Towers (HTWS) 232.20p 14.17%
Pan African Resources (PAF) 156.22p 5.21%
Endeavour Mining (EDV) 4,916.00p 5.09%
Pagegroup (PAGE) 139.80p 5.07%
Telecom Plus (TEP) 1,092.00p 4.80%
Hochschild Mining (HOC) 664.00p 4.57%
Johnson Service Group (JSG) 136.95p 4.38%
TBC Bank Group (TBCG) 4,698.00p 4.26%
Raspberry PI Holdings (RPI) 718.50p 3.98%
4Imprint Group (FOUR) 3,820.00p 3.86%
FTSE 250 - Fallers
Victrex plc (VCT) 596.00p -3.09%
QinetiQ Group (QQ.) 433.10p -2.80%
Supermarket Income Reit (SUPR) 82.65p -2.54%
Barr (A.G.) (BAG) 619.00p -2.37%
Harworth Group (HWG) 136.20p -2.30%
Drax Group (DRX) 865.00p -2.28%
Clarkson (CKN) 4,828.00p -2.26%
Grainger (GRI) 161.30p -2.12%
C&C Group (CDI) (CCR) 112.40p -2.09%
Chemring Group (CHG) 507.00p -2.03%
77.70 (0.76%)
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