Britain's top equity index rose on Tuesday as a possible counter-bid lifted shares in the London Stock Exchange, offsetting drops for Barclays, Ashtead and Glencore. The bluechip FTSE 100 index rose 0.9 percent to 6,152.88 points, its highest in about two months.
Shares in the London Stock Exchange (LSE) hit record highs, rising 7.2 percent after Intercontinental Exchange said it was considering a counter-offer for LSE, which is already in merger talks with Deutsche Boerse. "Mergers and acquisitions activity is aiding sentiment and giving the FTSE a boost," said London Capital Group's head analyst, Brenda Kelly.
The rise in LSE offset the negative effects of an 8.1 percent slump for Barclays after the British bank reported lower profit, cut its dividend and announced a restructuring entailing the sale of its Africa business. "Overall, these are disappointing results, particularly the lowering of the dividend and financial targets," Nicolas Ziegelasch, head of equity research at Killik & Co, said of Barclays' results.
Shares in equipment rental company Ashtead dived by 8.8 percent, with analysts citing concerns over a slowdown in the company's main US market. Glencore also dipped, with the mining and trading company's drop in full-year earnings serving to end a share-price rally that had lifted the stock by more than 40 percent in the past month. The FTSE 100 remains 1.4 percent down since the start of the year and 14 percent below an April 2015 record high, hit by concerns over the global economy.
Comments
Comments are closed.