LONDON: London’s FTSE 100 rose on Thursday as strong profit growth at Shell lifted energy stocks, while upbeat US economic data did little to alter bets on interest rate hikes.
The blue-chip FTSE 100 index closed up 0.26 percent at 10,722.07 points, while the midcap FTSE 250 climbed 0.14 percent.
Shell rose 2.1 percent after the oil major reported its highest quarterly profit since 2022, and increased its share buyback program.
Energy stocks outperformed the broader market, with the sector climbing nearly 1.64 percent despite a dip in oil prices.
Conversely, Haleon slid about 15 percent, its biggest one-day fall in its four years as a publicly listed firm, after the consumer health company cut its organic revenue growth forecast.
An exclusive Reuters report also said Haleon Chief Executive Brian McNamara warned staff of “difficult choices” ahead after the sales miss.
Haleon’s slide dragged the pharma sector 0.46 percent lower, while GSK’s results on Wednesday also disappointed.
Declines in pharma and banks limited the overall rise. Banks were dragged down by a 5 percent fall in Lloyds Banking Group after it reported muted third-quarter results.
Finance minister John Healey’s less-than-feared tax hikes in his budget on banks and gambling firms had sparked a rally in their stocks on Wednesday.
British defence firms BAE Systems and Rolls-Royce gained 2.2 percent and 1.4 percent respectively, extending gains a day after Healey said “reprioritisation” would fill a £4.7 billion (USD6.3 billion) gap in Britain’s Defence Investment Plan.
The US Federal Reserve held interest rates steady on Wednesday, bringing Thursday’s personal consumption expenditure figures under scrutiny.
WPP gained 5.4 percent after the ad group said its turnaround plan was on track after reporting a smaller decline in third-quarter like-for-like revenue.