Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

UK mid-caps hit record high on recovery hopes; M&A chatter boosts Meggitt

05/07/2021 | 12:12pm EDT
FILE PHOTO: The London Stock Exchange offices in the City of London, Britain

(Reuters) -Britain's mid-cap index closed at a record high on Friday as hopes of a stronger economic recovery lifted industrial and consumer discretionary stocks, while Meggitt shares soared on a takeover report.

The domestically focused mid-cap FTSE 250 index advanced 1.2%, with industrial stocks, including Easyjet Plc, IMI Plc and Pagegroup Plc, rising between 2.7% and 5.1%.

The blue-chip index rose 0.7%, clocking its best week since April with Melrose Industries adding 1.8% after Morgan Stanley raised its price target on the engineer's shares.

Mining stocks, mainly Anglo American, Glencore Plc and Rio Tinto Plc, provided the biggest boost on the index, gaining between 0.7% and 3.6%.

"The solid rise comes after the BoE upgraded its growth forecasts for the UK. Confirmation of stronger growth from the BoE has added to market confidence that the recovery is firmly on track," said Sophie Griffiths, market analyst, UK & EMEA, OANDA.

"With further easing of lockdown measures later this month, economic growth is likely to accelerate."

Both the indexes have gained 10% year-to-date as investors flocked to energy, materials and banking stocks that are seen benefiting the most from a stronger economic recovery due to speedy COVID-19 vaccine rollouts and government policy support.

St. Modwen Properties surged 20.0% to the top of midcap index after it received a potential takeover offer from private equity firm Blackstone , valuing the property developer at around 1.21 billion pounds ($1.68 billion).

Meggitt jumped 8.3% on a report that U.S. group Woodward Inc was looking to acquire the UK aero-engineer.

Barclays gained 2.5% after activist investor Sherborne sold its 6% stake in the company, disbanding its efforts to overhaul the British bank.

(Reporting by Devik Jain and Shivani Kumaresan in Bengaluru; Editing by Subhranshu Sahu and Steve Orlofsky)

By Shivani Kumaresan and Devik Jain


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / BRITISH POUND (AUD/GBP) -0.16% 0.5457 Delayed Quote.-2.78%
BARCLAYS PLC 0.75% 180.4 Delayed Quote.22.99%
CANADIAN DOLLAR / BRITISH POUND (CAD/GBP) 0.00% 0.583124 Delayed Quote.1.41%
EURO / BRITISH POUND (EUR/GBP) -0.10% 0.85812 Delayed Quote.-3.84%
FTSE MID 250 INDEX 0.55% 22734.13 Delayed Quote.10.96%
GLENCORE PLC 2.88% 329.1 Delayed Quote.41.24%
IMI PLC 0.06% 1702 Delayed Quote.46.09%
INDIAN RUPEE / BRITISH POUND (INR/GBP) 0.00% 0.009678 Delayed Quote.-3.66%
US DOLLAR / BRITISH POUND (USD/GBP) 0.00% 0.708938 Delayed Quote.-3.49%
Latest news "Economy & Forex"
03:41pECOWAS ECONOMIC COMMUNITY OF WEST AFRICAN STATES  : Twenty-Ninth Ordinary Session of the ECOWAS Administration and Finance Committee Closes in Accra
PU
03:29pHundreds take part in funeral of Canadian Muslim family killed in truck attack
RE
03:28p'Intense' Iran nuclear talks resume as Germany calls for rapid progress
RE
02:49pPRESIDENCY OF REPUBLIC OF TURKEY  : President Erdoğan to Visit Belgium and Azerbaijan
PU
02:47pANYTHING YOU CAN DO : G7 rivals China with grand infrastructure plan
RE
01:37pOFFICE OF PRIME MINISTER OF CANADA  : Prime Minister Justin Trudeau meets with Prime Minister of Italy Mario Draghi
PU
01:22pJEFF BEZOS : Bid of $28 million wins a rocket trip to space with Bezos
RE
01:09pBid of $28 million wins auction for seat on blue origin spaceship ride with billionaire jeff bezos
RE
01:04pGerman Green leader wants new policy to aid industry in CO2 reduction
RE
12:57pAmazon raises minimum pay in Germany to 12 euros per hour
RE
Latest news "Economy & Forex"