The FTSE 100 surged to fresh intraday record highs on Wednesday as pharmaceutical stocks rallied on plans for a US direct-to-consumer sales platform
London’s leading index was trading at 9,420 after reaching a high of 9,424. A close above 9,350 would be a fresh closing record high.
The FTSE 100’s heavy weighting towards pharmaceuticals meant the index shrugged off concerns about the US government shutdown as US and European stocks dipped.
“The US government shutdown has left investors wondering what might happen next, with a minor pullback on European equity markets and weaker futures prices for Wall Street,” says Russ Mould, investment director at AJ Bell.
“The FTSE 100 bucked the negative trend, rising 0.4% thanks to a surge in pharmaceutical stocks.
“AstraZeneca, Hikma and GSK rallied after Donald Trump announced plans to launch a government-run website for consumers to buy drugs directly from manufacturers. It looks like investors are regaining confidence in the pharma sector following recent uncertainty around pricing and tariffs. More clarity on both points is helping to regain investors’ interest.”
AstraZeneca, the FTSE 100’s largest company by market cap, rose over 5% adding a significant number of points to the index. Hikma rose 4%.
JD Sports was also among the risers, with a 3.7% increase.
Housebuilders were fairly flat despite the latest data from Nationwide showing house prices rose at an annual pace of 2.2% in the year to September.
“A sustained upward trend in house prices reflects a resilient and increasingly competitive housing market,” said Nathan Emerson, CEO at Propertymark.
“This increase can be attributed to several key factors, including limited housing supply, strong buyer demand, and favourable lending conditions that continue to support purchasing activity despite broader economic uncertainties.”
Taylor Wimpey was up 0.4% after releasing a trading statement pointing to mild improvements in sales rates for the year to date. They did, however, highlight ‘softer market conditions’ in their second quarter.
Babcock was the top FTSE 100 faller, losing 2.3%.