FTSE 100 rises

LONDON: London’s FTSE 100 index edged higher on Tuesday powered by healthcare and utility stocks, while investors closely tracked the prospect of more Western sanctions against Russia over the war in Ukraine.

The blue-chip index closed 0.7% higher, with drugmakers AstraZeneca and GlaxoSmithKline rising 1.9% and 3.1%, respectively, to provide the biggest boost to the index.

Jefferies raised its price target on GSK as it was confident about the drugmaker in the long term, provided it successfully implements its ultra-long-acting HIV regimens. SSE, United Utilities and National Grid climb over 3% each to top the FTSE 100 index.

UK stocks were subdued in early trading, dragged down by heavyweight miners and Homebuilders . But by close, the mining index recouped losses to end 1% higher.

The oil and gas index rose 0.6%, tracking volatile crude prices which steadied as growing worries about coronavirus demand destruction offset supply concerns as the European Union proposed sweeping new sanctions against Russia, including a ban on coal imports.

“We’re in choppy waters. You’ve had this rebound in growth names which hasn’t helped the UK in the short term,” said Rupert Thompson, an investment strategist at Kingswood.

“In the six- to 12-month horizon, we think the UK will outperform because we still buy the story that it is super cheap, and that there is going to be a further rotation into value.” The FTSE 100 ended the first quarter with gains, faring better than its European and US peers as surging commodity prices boosted shares of mining and oil majors, while banks gained from the prospect of rising interest rates.

The domestically focussed mid-cap FTSE 250 index edged 0.1% though shares of cybersecurity company Darktrace dropped 5.9% after J.P. Morgan started its coverage with an “underweight” rating.

Telecoms group Vodafone slipped 0.4% as Berenberg downgraded the stock to “hold” from “buy”, while Lloyds Banking Group slid 1.2% after Barclays cut it to “equal weight”.

Go-Ahead rose 2.3% as the transport operator plans to expand its operations and reinstate its pre-COVID-19 dividend policy after a months-long strategic review.