LONDON, Sept 30 ― London's FTSE 100 ended higher yesterday, as AstraZeneca boosted healthcare stocks on completing a takeover deal to sharpen its focus on rare-disease drugs.

AstraZeneca rose 4.2 per cent and was the top boost to the blue-chip FTSE 100 after the pharmaceutical company said its newly acquired Alexion division would buy the remaining equity in Caelum Biosciences in a deal that could be worth up to US$500 million (RM2.1 billion).

The FTSE 100 rose 1.1 per cent to mark its best day in a week. HSBC Holdings advanced 2.1 per cent and led the banking sub-index 1.7 per cent higher, while Investec, Natwest Group and Lloyds rose between 0.7 per cent and 2.2 per cent.

The blue-chip index has risen 10.1 per cent so far this year on highly accommodative central bank policies and optimism around steady Covid-19 vaccination drives. But in September, it is set to record its worst month since January this year as inflation and economic slowdown worries weighed on investor sentiment.

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“To counter the threat posed by rising prices they (central banks) face the prospect of dialling down economic support at a time of mounting uncertainty over the recovery,” said Russ Mould, investment director at AJ Bell.

The benchmark UK 10-year bond yield slipped on Wednesday but has gained nearly 50 basis points in the past eight trading sessions, as signs of a more persistent inflation pattern raised bets of a sooner-than-expected interest rate hike. Banks generally perform better in a higher interest rate environment.

Britons have reported a first worsening in their financial situation in more than a year as inflation pushes up the cost of living, a survey showed.

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The domestically focussed mid-cap index advanced 0.1 per cent, with travel and leisure stocks among the top gainers.

Among stocks, clothing retailer Next Plc rose 3.9 per cent after raising its full-year profit guidance.

Upper Crust owner SSP Group fell 5.4 per cent over a slow recovery as sales remained at half of the pre-pandemic levels.

Morrisons gained 1.4 per cent on report that a US$9.5-billion fight for the British supermarket will be decided at an auction on Saturday. ― Reuters