LONDON: British equities kicked off the week on an upbeat note, boosted by gains in pharma and biotech shares following the US FDA’s approval of AstraZeneca’s lung cancer drug, while Currys soared on takeover interest from JD.com and Elliot FTSE .
The blue-chip FTSE 100 index climbed 0.2% to a near seven-week high, while the mid-cap FTSE 250 index edged 0.1% higher.
Trading volumes were low globally as US markets were shut for a public holiday.
AstraZeneca topped the benchmark index with a 3.2% jump after a combination of the drugmaker’s cancer drug Tagrisso with chemotherapy to treat a type of lung cancer was approved by the US Food and Drug Administration.
A surge in the biopharmaceutical giant’s shares propelled the pharma and biotech sector to an 11-day high.
Currys had its best day on record after soaring 36.4%. Chinese e-commerce group JD.com said it was evaluating a takeover of the British electricals retailer, laying the ground for a bidding war after the group rejected a rival 700 million pound ($883 million) deal.
“The bid battle for Currys has begun as multiple parties throw their hat in the ring,” said AJ Bell investment director Russ Mould.
“Currys is the last big UK electricals chain with a physical store estate which makes it a unique asset on the domestic stock market.”
Both of the UK’s main stock indexes snapped a two-week losing streak last week amid investors optimism about an early interest rate cut from the Bank of England after domestic economic data signalled slowing inflation.
Among sectors, industrial metal miners were the top losers, falling 1.3% as copper prices slipped after China’s central bank held key rates on medium-term loans steady.
Meanwhile, the price of homes being put up for sale in Britain has risen in annual terms for the first time in six months, according to an industry survey.
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