UK shares edged up on Wednesday as investors analysed a fresh batch of corporate earnings, but caution prevailed ahead of the annual budget statement later in the day.
The blue-chip FTSE 100 was up 0.3%, as of 0923 GMT. Market participants will remain squarely focused on Finance Minister Jeremy Hunt’s presentation of the pre-election annual budget, due at 1230 GMT, where he is expected to provide tax cuts despite the economy facing its biggest debt burden since the 1960s.
“There is positivity that there’s going to be fiscal steps to aid the suffering in the UK economy,” said Daniela Hathorn, a senior market analyst at Capital.com “But at the same time, and this is what the Bank of England has been trying to do, is making sure that enabling consumers to have more purchasing power doesn’t spike up inflation.”
Rate-sensitive real estate companies and real estate investment trusts added more than 1.3% each. ConvaTech jumped 6.7% to the top of FTSE 100 after the medical products and technologies firm raised it mid-term outlook for revenue growth, lifting the medical equipment and services index up 2.8% to lead sectoral gains.
Ashtead, commodity stocks drag FTSE 100 to near three-week lows
London Stock Exchange Group added 3% after a consortium of investors sold about 1.9 billion pounds ($2.42 billion) worth of shares in the London bourse owner.
Legal & General slid 2.8%, leading losses on the FTSE 100, after the life insurer missed expectations for 2023 operating profit amid tough market conditions, dashing residual hopes of a share buyback.
The mid-cap FTSE 250 added 0.6%, led by a 14.8% jump in Premier Foods after the food products maker suspended its pension deficit payments.
Among other stocks, London-listed shares of Antofagasta slid 1.6% after Barclays and RBC Capital Markets downgraded the Chilean miner, while British Airways owner IAG gained 4.3% on a JP Morgan rating upgrade.
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