LONDON, Jan 26 — London’s FTSE 100 rose today with heavyweight mining, energy and banking shares leading gains ahead of the outcome of a Federal Reserve meeting, while Playtech dropped after a report of potential breakup with Australia’s Aristocrat Leisure.
The blue-chip FTSE 100 rose 1.7 per cent with Royal Dutch Shell, BP, Glencore and HSBC Holdings the top boosts to the index.
The banking sub-index rose 2.7 per cent, tracking higher yields amid expectations of rising interest rates.
Global shares steadied after sharp losses earlier this week as investors awaited any hints about faster tightening of monetary policy from the Fed later in the day.
The FTSE 100 has gained 1.3 per cent so far this year, significantly outperforming a 4.4 per cent drop in the wider European stock aggregate, helped by cheap valuations, strong banking and energy gains and a lower exposure to technology stocks.
“There is a lot of global rotation out of growth into value stocks and the FTSE 100 is full of value stocks and that is one of the key reasons why the FTSE has outperformed and we expect this trend to carry on,” said Keith Temperton, sales trader at Forte Securities.
The domestically focussed mid-cap index was up 1.7 per cent with travel and leisure stocks leading the gains.
“UK stocks have everything in its favour right now with strong commodity prices and the higher interest rate environment only to provide added support,” Temperton said.
Britain’s Pets At Home jumped 4.8 per cent after pet supplies retailer raised its profit outlook for fiscal 2022.
Hungary-based carrier Wizz Air added 3.2 per cent even after it posted a third-quarter operating loss and said the fourth quarter loss was likely to be slightly higher, before an expected improvement in spring.
Gambling software maker Playtech fell 3.6 per cent and was the top loser on the mid-cap index after it once again backed a buyout by Aristocrat Leisure, following a report that the London-listed company was exploring a breakup if the deal does not go through. — Reuters
