The FTSE 100 rose in early trade on Monday as the UK equity market shared some of the cheer emanating from the English football team after their victory in Mexico overnight.
But gains for London’s leading index quickly faded, and the FTSE 100 was marginally negative at 10,669 at the time of writing.
Seemingly out of nowhere, the FTSE 100 was trading within touching distance of all-time highs at 10,910 this morning, after the index’s defensive nature provided a source of outperformance in recent weeks before more cyclical stocks entered the fray today.
St James’s Place was the top riser as a rally in financial stocks continued into a second week. Prudential rose 1.8%.
AI-related stocks Experian and RELX were also among the top risers, with bargain hunters adding them to their portfolios as last week’s wobble around AI showed signs of stabilisation.
Barratt Redrow extended recent gains on Monday, rising 2% to 289p. Barratts has traded as low as 236p in recent weeks.
IAG was higher in sympathy with Easyjet’s ‘agreement in principle’ for a 690p takeover.
Fresnillo was hit by a decline in silver prices amid concerns about rising interest rates. Halma was the top faller, shedding 2.6%.
ITV’s sale of its broadcasting arm to Sky was the standout FTSE 100 corporate story on Monday. The group has long been under pressure to break up to unlock value in the content business, with many seeing the broadcasting business as a drag on the studios’ business, which is thriving in the new era of streaming.
“ITV’s decision to sell its broadcasting arm to Sky for £1.6 billion marks another significant step in the reshaping of the European media landscape as big players compete in a highly competitive environment,” said Susannah Streeter, Chief Investment Strategist, Wealth Club.
“It comes at a tough time for journalists, producers and crews in the industry who are already reeling from deep cost-cutting programmes at the BBC.
“Traditional broadcasters are having to change tactics fast in the battle for audiences whose attention is increasingly fragmented across streaming platforms, social media and online video, making advertising revenues harder to sustain. By bringing together two of Britain’s biggest broadcasting operations, the deal promises greater scale and opportunities to improve efficiency, while drawing on decades of industry expertise.”