LONDON: London’s FTSE 100 ended higher on Monday, helped by gains in mining and industrial stocks, while supermarket chain Morrisons was the top gainer on the mid-cap index following a proposed takeover offer.
After falling as much as 0.98% to its lowest since May 19, the blue-chip index retreated to end 0.6% up. Base and precious metal miners, rose 0.9% and 0.2% respectively.
The domestically focused mid-cap index advanced 0.6%.
Morrisons surged 34.6% on hopes US private equity firm Clayton, Dubilier & Rice (CD&R) might raise its proposed offer, despite its initial proposal being rejected.
Meanwhile, a spike in inflation, which surged past the Bank of England’s target in May, further raised concerns among investors that the central bank could pull back its monetary support in a meeting due later this week.
However, the rate-setters look set to remain divided over whether to pull the plug on their 875 billion-pound ($1.2 trillion) government bond purchase programme.
Industrials gained 1%, led by outsourcer Capita, which rose 9% after it said it was on track to post revenue growth for the first time in six years and agreed to sell its 51% stake in Axelos.
Dollar-earning consumer staples stocks, including British American Tobacco, Reckitt Benckiser Group,and Diageo Plc gained between 0.5% and 0.8%.
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