Britain’s FTSE 100 ended higher on Friday and logged its fourth straight weekly gain, boosted by shares of big British banks, while Dechra surged following news of talks for a takeover deal.
The blue-chip FTSE 100 closed 0.4% higher at a one-month high, boosted by banks like HSBC Holdings Plc and Barclays Plc, which tracked investor optimism in the United States after three big U.S. lenders reported strong quarterly earnings.
The broader bank sector surged 2.6%, hitting its highest in a month.
“It doesn’t surprise me that the biggest UK banks tended to take their cue from JPMorgan and other earnings in the U.S.,” said Steve Sosnick, chief strategist at Interactive Brokers.
“Being the two big leaders, investors are heartened that large banks are still faring well.”
Mid-cap name Dechra Pharmaceuticals Plc, jumped 33.1%, recording its biggest one-day percentage gain in over two decades after the veterinary pharmaceuticals maker said it had entered into talks with private equity group EQT for a possible offer in a 4.63 billion pounds ($5.80 billion) all-cash deal.
The healthcare index housing the stock gained 0.2%.
Oil and gas stocks also advanced 0.5% tracking strength in crude oil prices.
FTSE 100 logged a 1.6% week jump, with gains in industrial miners boosting the resource-rich index, while investors have also taken interest in sectors considered insulated from a recession such as consumer staples and pharmaceuticals.
HSBC said its planned sale of its French retail banking business could fail due to capital concerns on part of the buyer. But the lender was up 3.0% with the broader sector.
AO World Plc soared 11.8% after the online electricals retailer said it expected its annual profit to be around the top end of its forecast.
888 Holdings surged 20.9% after the bootmaker forecast a higher adjusted core profit for 2023.
Bucking the trend, Superdry tumbled 16.7% after the struggling fashion brand said a potential equity raise of up to 20% was among funding options being considered.
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