MARKET REPORT: Footsie record-breaking bid knocked off course

The FTSE 100 missed the chance to regain its all-time high this week after turbulent trading and rocky results raised hopes.

The large-cap index gained 0.30 percent, or 23.30 points, yesterday to 7770.59, recouping some of Thursday’s losses, but fell about 1 percent over the week as broader economic woes hit hard. weighs on investor confidence.

The UK’s leading index took off in early January, rising more than 5 percent, coming close to a record high of 7877, but for now the champagne is still on ice.

Among the risers was energy giant SSE, which climbed to the top of the footsie in early morning trading. The British energy company not only raised earnings expectations after price increases, but also recommended an annual dividend of 85.7 pence per share for fiscal 2023 with a further 5 percent increase in 2025 and 2026.

Shares rose 2.9 percent, or 48.5 pence, to 1750.5 pence, a two-month record for the energy giant. Richard Hunter, Head of Markets at Interactive Investor, said: ‘UK markets continued to fly the flag and dodged recession fears for now.

“The FTSE100 was supported by a return to risk-on behaviour, with demand from miners and oil companies in particular.”

Among miners, Rio Tinto rose 1 percent, or 62p, to 6213p, and Anglo American gained 0.1 percent, or 2.5p, to 3566p. Energy giant Shell rose 0.1 percent, or 2.5 pence, to 2,363 pence, and BP rose 0.2 percent, or 1.15 pence, to 475.85 pence.

The top index also managed to shake off weak retail sales, which showed a 1 percent decline in December, while an increase of 0.5 percent was expected. The ONS said December sales volumes were 1.7 percent below pre-pandemic levels in February 2020.

But this didn’t weigh down London-listed retailers. JD Sports was booming and still clearly feeling the aftermath of last week’s news that pre-Christmas profits would top £1bn.

The trainer and tracksuit seller gained 2.8 percent, or 4.25 pence, to 157 pence.

And despite China’s Covid containment and tightening consumer spending, luxury retailer Burberry was another top move, rising 2.4 percent, or 55 pence, to 2,358 pence, as investors appear unfazed by the dismal retail numbers.

Meanwhile, Asos led the FTSE 250 (+0.66 percent, or 128.52 points, to 19702.63) after Bank America said it was now a buyer of the fast-fashion retailer, as well as rival Boohoo. Asos jumped 11.1 percent, or 78p, to 778p, and Boohoo shot up 8.5 percent, or 3.59p, to 46p.

Victoria Scholar, head of investment at Interactive Investor, said: ‘The UK large-cap index has far outperformed the mid-cap FTSE 250 index over the past year, which is much more closely correlated with UK economic and political uncertainty.

“The FTSE 100 is an outward-looking index that has made gains thanks to certain sectors that have benefited from rising energy prices and interest rates.”

But power seemed to be in the hands of brokers yesterday.

Upgrades increased both 3i Group, the private equity firm, and Flutter Entertainment, the gambling giant that owns Paddy Power and Betfair, by 3.3 percent, or 47p, to 1462.5p and 2.5 percent, or 300p, to 12,565p.

But AstraZeneca also faced anger after Stifel analysts warned the pharmaceutical company is facing a tougher year than expected.

The Anglo-Swedish pharmaceutical giant could lose as much as £2.4bn between 2022 and 2023 on sales of Covid-19 products, including vaccines and treatments, the investment bank said. Shares fell 1.9 percent, or 220 pence, to 11,200 pence.