The FTSE 100 was on the front foot going into the Easter weekend as a boost to the commodities sector helped the index ever closer to record highs above 8,000.

Confirmation that the UK entered a recession in Q4 2023 did little to dampen traders’ enthusiasm for UK stocks as the FTSE 100 traded higher by 0.26% at 7,952. The index had hit 7,973 earlier in the session.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, explained that while the economy contracted, key economic indicators were robust: “the ONS snapshot also shows that savings remained relatively high and real household disposable incomes increased in the last quarter of the year, adding to hopes that consumers resilience has been rising and that the recession will have been a super-short one.”

London’s leading index is often little moved by UK-centric economic developments and is more easily led by China, as was the case on Thursday. A strong session in China overnight helped drive early gains in London, particularly in those stocks with exposure to the world’s second-largest economy.

“The FTSE 100 was higher ahead of the Easter weekend, lifted by strength in the resources sector as Chinese markets rallied,” said AJ Bell investment director Russ Mould.

The mining sector was the main driving force behind the gains, but JD Sports was the standout riser, jumping 10% after signalling that the profits warning issued earlier this year has been contained. 

JD Sports has been a powerhouse in the sportswear retailing space, but the stock wobbled earlier this year when it revised down profit targets. However, today’s full year results announcement will go along way to dispelling fears about its growth trajectory. 

“Amid cracks in the athleisure and footwear sector, JD Sports has managed to outperform the market and is upbeat about prospects for the year ahead. That’s quite a different message from other key players in the sector such as Lululemon and Nike which both disappointed with their latest updates as consumers rein in spending and competition heats up,” Russ Mould said.

“JD Sports isn’t completely immune. The marketplace is awash with discounting and a lack of new products to excite shoppers. Interest rates remain high and consumer spending habits are unlikely to show a drastic improvement until we’ve seen several rate cuts by central banks. However, JD continues to open new stores which might help it grow sales at a faster rate than the average peer.”

A major Tekcapital shareholder has increased his stake in the business, the AIM-listed technology investment company announced on Thursday.

James Robert Kight has increased his stake to 8.09% from 7.03%, a holding that is worth circa £1.4m at current prices.

Mr Kight’s stakebuilding follows the move by another major shareholder, Elie Dangoor, to increase his stake to 6.24% in February.

The major shareholders have upped their holdings in Tekcapital after its portfolio company MicroSalt listed in February and quickly got off to a strong start as a listed company. After listing at 43p, MicroSalt shares nearly tripled before easing back. 

Analysts at SP Angel and Kemeny Capital have recently given Tekcapital price targets of 18p and 29.9p, respectively, based on the underlying value of its portfolio companies. SP Angel said they saw a 74p price target for Tekcapital on the delivery of its growth strategy.

Based on today’s share price, the targets would imply at least a 100% upside in Tekcapital’s shares.

AO World joined a number of UK retail companies releasing reasonably positive trading updates ahead of the Easter weekend.

The group said revenues for FY2024 would be £1.04bn – roughly 10% lower than 2023 but in line with the group’s guidance provided in late 2023.

AO World said it saw adjusted profit before tax at the top end of the previously guided £28-£33m range.

“I’m pleased with the clear progress that we’re making after pivoting our focus to profit and cash generation during the 2023 financial year. As we expected at our half year results, we returned to revenue growth in our core business during Q4 and, as a result, we’re entering the new financial year with good momentum,” said John Roberts, CEO and Founder of AO World.

“With net funds on our balance sheet and a clear plan, we remain confident in our ability to deliver on our ambition for 10-20% revenue growth in the year ahead and medium-term profit guidance of 5% adjusted PBT margin.”

JD Sports has released an upbeat FY2024 trading update confirming strong growth in North America, Europe, and Asia helped by new store openings.

The company said FY24 Profit before Tax and Adjusted Items would fall within the previously guided range of £915-935m. Total FY24 sales grew 3.6% to £10.5bn and JD maintained robust gross margins at 47.3%.

JD Sports opened a total of 215 stores globally in the period boosting organic growth across all geographical segments.

The company saw North American organic sales grow 9.3% over the full year while like-for-like sales increased 2.1% in Q4.

Q4 wasn’t great for the UK and Ireland with like-for-like sales down 3.2%. Organic sales grew 1.5% in the full year.

Trading in southern Europe was strong, helping offset weakness in northern Europe as organic sales surged 15.3% higher over the full-year period.

“In our FY24 financial year, we outperformed the sportswear market, reflecting the strength of our business. We achieved like-for-like sales growth of over 4%, organic growth of over 8% and our athleisure fascias achieved organic growth of over 10%,” said Régis Schultz, CEO of JD Sports Fashion.

“We made good strategic progress, opening 215 new JD stores, and focusing our effort on developing JD and enhancing EPS through taking full control of ISRG and MIG. We expect profit before tax for the year to be in line with the guided range given in January.”

JD Sports has previously missed a self-set £1bn profit before tax target and investors will be disappointment to see group guide for £900-980m profit before tax in 2025.

That said, any form of sales growth in the year ahead given the downbeat economic projections in key markets will be welcomed by investors after years of remarkable growth.