LONDON: A takeover offer for NEX Group sent the shares shooting up by almost a third on Friday, while the FTSE 100 got a boost from energy and financials stocks though it was still headed for a loss on the week.
Financial technology company NEX Group rose 31 percent after saying it received a preliminary takeover offer from CME. Speculation that the offer may trigger a bidding war was likely to support the shares.
"NEX is an important strategic asset and therefore we would not be surprised to see competing interest," said Liberum.
The FTSE 100 was up 0.2 percent by 0924 GMT, but was set for a loss of 1 percent on the week.
"The next stage for UK equities does look a little bit more mired, and no matter what happens to the pound UK stocks could warrant a risk premium as we head into the final (Brexit) negotiations," said Gautam Batra, head of investments at Mediolanum Asset Management.
On Friday, the FTSE was buoyed by strong financials and energy stocks, but several companies suffered big share price falls after results.
Berkeley Group shares fell 5 percent, the worst-performing on the FTSE 100, after the housebuilder said it couldn't increase volumes further due to planning constraints.
"The shares are looking fairly expensive and standing at the highest premium to fair value in the sector," said Shore Capital analyst Robin Hardy.
"We would, at the very least, still look to be taking profit here and, as with the other larger cap house builders, reduce weightings."
Housebuilders Taylor Wimpey, Barratt Development , Persimmon also fell 1.3 to 1.9 percent.
Outsourcing company Mitie fell 4.5 percent to its lowest level since 2005 after it said it sees a tough year ahead, increasing its estimated costs from a turnaround plan.
Peer Capita also tumbled 4 percent.
M&A news also moved Old Mutual. Shares in the Anglo-South African financial services group dipped 1.5 percent after a source said it was selling three businesses in Latin America to China Minsheng Investment Group International for around $300 million.
Shares in pubs group J D Wetherspoon fell 1.9 percent after the company said it expects lower sales growth and higher costs in the rest of the year.
TalkTalk sank to the bottom of the FTSE 250, down 5.9 percent after JP Morgan cut its target price on the stock.
Overall, sentiment has turned more negative on FTSE 100 earnings: analysts have overall been downgrading their earnings expectations in past weeks.
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