The FTSE 100 was higher on Monday, with oil companies providing support for the index as Brent Crude traded above the $100 mark
London’s leading index was 0.4% higher at 10,310 at the time of writing.
“The FTSE 100 ticked higher at the start of the week as its material weighting towards energy continued to offer some ballast during the Iran conflict,” says AJ Bell investment director Russ Mould.
“Oil prices were higher again and Asian markets were lower as fighting in the Middle East rumbles on. By the time markets opened in Europe, oil was a little off its highs for the session. Over the weekend, Iran’s foreign minister Abbas Araghchi said the strategically important Strait of Hormuz was only closed to the US, Israel and its allies.”
It is probably too early to call a bottom, but the FTSE 100 is showing signs of building a base around the 10,250 level, having found support there a couple of times in recent trading sessions. Perceptions of how damaging any response by central banks to manage inflation will likely dictate whether this level holds.
The majority of FTSE 100 shares were higher at the time of writing, led by SEGRO, which reacted well to news that it has reached an agreement for a new data centre in the South East of England.
The UK’s public markets lack ‘AI enablers,’ and although SEGRO is just providing the facility to host the data centre, it does offer interesting exposure to the rapidly growing AI industry.
Andrew Pilsworth, Managing Director of Data Centres and Strategic Partnerships at SEGRO, said that the update allowed SEGRO to “demonstrate further progress in our strategy to execute on the 2.5GW+ opportunity in our powered land bank.
“The critical mass of data centres we have built up at Slough over the last 20 years, together with the Simplified Planning Zone status we have secured there were integral to enabling us to work with an existing customer to expand its campus, while allowing SEGRO to profitably utilise a relatively small 3.5 acre plot.”
SEGRO shares were 2.6% higher at the time of writing.
CRH
The mild optimism in London’s market on Monday was dealt a blow from the news that CRH would cancel its London listing and add to the growing list of companies that are leaving the UK’s markets.
“Having already shifted its primary listing to the US, building materials specialist CRH is to now turn its back completely on London,” Russ Mould said.
“The development, though not seismic, is another sign of London’s diminished status in the roster of global markets. Companies who switch their main listing to the US often pledge to keep a presence in London, but CRH’s actions suggest that is no longer a given.”