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Markets

Britain's FTSE lifted by defence stocks and Smiths Group

Published Updated

imageLONDON: Britain's top equity index climbed on Tuesday, boosted by engineer Smiths Group and defence stocks, which rose as France stepped up its military response to last week's attacks in Paris.

The blue-chip FTSE 100 index advanced 1.8 percent to 6,259.37 points, going into the middle of the trading session.

Engineering conglomerate Smiths Group surged 9.6 percent, topping the FTSE 100, after robust first-quarter results and a change in its pension plan funding that should bolster its cash flow.

Companies dealing in the defence and military industries also rose as France carried out new air strikes on Islamic State bases in northern Syria, following last Friday's attacks in Paris claimed by the Islamist group which killed more than 120 people.

Rolls Royce, which slumped last week after a profit warning, rose 4.2 percent while BAE Systems gained 1.9 percent.

"I'm keen on BAE at the moment, and I see the FTSE going up to 6,300 or 6,330 points soon," said Roderic Owen-Thomas, derivatives trader at JNF Capital.

Supermarket retailer Sainsbury also gained 3.1 percent after industry data by Kantar Worldpanel showed that the supermarket's sales rose by 1.5 percent in the third quarter, while its rival Tesco also rose after Citigroup upgraded its rating on Tesco to "buy" from "neutral."

However, budget airline operator easyJet fell 4.1 percent despite reporting an 18 percent jump in annual profit.

Analysts said concern that tourist numbers may fall following the attacks in Paris weighed on easyJet shares.

Other tourism stocks recovered following an initial sell-off on Monday after the Paris attacks.

Carnival rose 2.4 percent, TUI gained 2.2 percent, Intercontinental Hotels Group advanced 1.2 percent and International Consolidated Airlines Group rose 2.3 percent.

Copyright Reuters, 2015

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