LONDON: Britain’s FTSE 100 touched record highs on Wednesday as gains in home builders and energy shares offset a slump in wealth managers, which came under pressure from concerns about AI disrupting their business models.
The blue-chip FTSE 100 rose 1.1 percent at a record close of 10,472.11 points.
The FTSE 350 Index of home builders rose 3.1 percent after a report said the Labour government was weighing plans for a new version of the Help to Buy scheme to support flagging demand for new homes. Shares of Vistry Group, Bellway and Persimmon rose in the range of 4.2 percent-5.4 percent.
“The mainstream housebuilders, especially those with high exposure to the South and South East are likely to be the major winners,” RBC analysts including Anthony Codling noted.
Energy stocks rose 3.6 percent as oil climbed on supply worries tied to US–Iran tensions and signs of stronger demand from falling crude inventories. BP and Shell climbed 5.4 percent and 2.9 percent respectively.
The FTSE 250 dipped 0.2 percent, having touched a four-year peak on Tuesday, as sharp declines in British wealth managers weighed on the mid-cap index.
Shares of Aberdeen Group, Quilter, IG Group and AJ Bell fell in the range of 2.8 percent to 7.9 percent, tracking losses in their US peers after wealth management startup Altruist introduced AI-enabled tax-planning features, fuelling fears over disruption to incumbents.
FTSE 100-listed St. James’s Place tumbled 13.4 percent.
London Stock Exchange Group closed up 0.2 percent after media reports said activist investor Elliott Management has built a stake and is engaging with the financial data and analytics group to improve its performance.
In a busy day for corporate updates, investors were also digesting US payrolls data showing the economy began 2026 on firmer footing, with January jobs rising more than expected and the unemployment rate edging down to 4.3 percent.
A preliminary reading of UK’s fourth-quarter GDP is due on Thursday, while December jobs data will be released next week.
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