The FTSE 100 rose on Friday in a volatile week of trading that ultimately saw Londons leading index post strong gains for the week.
The FTSE 100 was up 1.3% at 7,191 going into the close on Friday. The FTSE 100 closed last week 6,987.
The Russia invasion of Ukraine, and subsequent sanctions on Russia, continued to drive volatility in commodity prices which was responsible for much of the swings in FTSE 100 shares.
The FTSE 100’s miners and oil majors were among this week’s top performers.
UK GDP
Although the strength of the UK economy has little impact on the earnings of FTSE 100 companies, investors would have been encouraged by a 0.8% increase in activity in January.
The economy enjoyed a boost at the start of 2022 as consumer spending in retail and dining increased as consumers emerged from an Omicron-induced slow down in December.
UK GDP grew 0.8% with growth across all sectors, with services up 0.8%, production up 0.7% and construction up by 1.1%.
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown said, “The economy shook off the shackles of Omicron in January with sectors across the board bursting back to health, pushing output 0.8% above its pre-pandemic level.”
However, there were concerns the economy could slow as a result of higher inflation and energy prices due to the Ukraine conflict.
“The conflict in Ukraine has caused already hot commodity prices to heat up again, with households and businesses already feeling the temperature. As lockdown savings dwindle, and higher tax and energy bills are set to land, it’s set to put downward pressure on growth in the months to come,” said Streeter.
Pearson Takeover
Pearson shares soared on Friday, up almost 20% to 778.6p following a takeover approach by US Apollo for the education publishers. Pearson was the FTSE 100 top riser after they said the bid ‘significantly undervalued’ the company and planned to deliver their strategy.
Polymetal rose 12.3% to 169.4 as the beleagered stock continued to see interest from optimistic buyers hopeful for a comeback for the company as the war in Ukraine continues to cast doubt over the Russia-focussed gold miner.
Berkeley Group shares were up nearly 2% to 3,822p after the group restored confidence by addressing the impact of inflationary pressures. The group said that they were experiencing rising input costs due to inflation, however the increase sales price of their developments and business overseas has kept them on track to meet their annual guidance.
The top fallers included Fresnillo, which dropped 3.7% to 737p as the company’s shares continue to suffer following new labour laws in Mexico and a drop in gold and silver prices.