The FTSE 100 reversed early losses on Monday, with defensive stocks drawing traders’ attention as geopolitical risks mount.

London’s leading index was trading 0.1% higher at 10,213 at the time of writing after touching lows of 10,151 earlier in the session.

“After finishing the previous week with heavy losses, the FTSE 100 made an uncertain start on Monday as the list of market worries continues to build,” said Dan Coatsworth, head of markets at AJ Bell.

“Hopes that a resolution between the US and Iran might be in sight continue to ebb away and that’s reflected in oil prices ticking higher. Meanwhile movements in government bonds imply a lasting and potentially worsening inflationary impact from the crisis.”

Relations between the US and Iran took a turn for the worse over the weekend as the UAE reported attacks on nuclear facilities, casting fresh doubt over a lasting ceasefire agreement.

“After a weekend of drone strikes on energy infrastructure in the Middle East and Russia, Asia-Pacific equity markets have started the week in the red,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“Since the Iran conflict began, concerns about energy supplies have been especially acute in the Far East, which is heavily dependent on oil imports. But the prospect of a prolonged period of elevated oil prices is weighing more broadly this morning.

“Brent crude has climbed by around $2 this morning to above $111 a barrel, adding to last week’s steep gains. An escalation in drone attacks between Ukraine and Russia is a reminder that it’s not only Middle Eastern oil exports being disrupted by conflict. Russia remains the world’s second-largest exporter and, while restrictions on exports to countries such as India have been temporarily lifted, those waivers are set to expire soon.”

Higher oil prices translated into gains for BP and Shell, which were 2.2% and 1.9% higher, respectively.

Utilities bounced back from a poor week last week, driven by concerns about bond yields. Centrica was the FTSE 100’s top riser, up 2.8%. National Grid was 2.3% higher.

But higher oil prices are bad for almost every other sector. This, combined with ongoing concerns about US and UK bond yields, culminated in another selloff of cyclical stocks.

Housebuilders were all lower, with Barratt Redrow the heaviest hit, at a loss of 2.9%. Barratt Redrow is the worst FTSE 100 performer of 2026 so far.

Miners and banks were lower as investors shunned riskier sectors.

3I Group was the FTSE 100’s top faller after RBC cut their price target to 2,000p

Tap Global Group (LON: TAP) recently launched the Tap Earn app and it has reached $3.5m of assets under management. The app offers a yield of up to 7% on supported stablecoin holdings, up to 3.5% on Ethereum and up to 2.5% on Bitcoin. Tap Earn is available across all the company’s markets and will generate revenues for the company by converting passive customer balances into generating income. The share price increased 28.1% to 2.05p.

Richard and Charlotte Edwards have increased their shareholding in Pacsco (LON: PACS) from 14.6% to 22.5%. The share price rose 25.8% to 0.755p.

Ariana Resources (LON: AAU) is selling a 13.6% stake in the Zenit gold mining joint venture in Turkey to the majority shareholding for $19.5m – $17.2m after tax. Ariana Resources retains a 9.9% stake in Zenit, which could generate dividends, and has $29m in cash. The cash will be invested in the Dokwe project in Zimbabwe and the cash will fund the project up to the definitive feasibility study. The share price gained 8.11% to 2p.

Staffing firm Staffline (LON: STAF) has issued a trading statement indicating growth in the UK and Ireland thanks to market share gains. Growth is higher than expected but Zeus is being cautious and maintaining its forecast 2026 pre-tax profit of £8.7m. The share price improved 6.62% to 39.45p.

FALLERS

US private equity firm TA Associates has decided not to bid for wound care provider Advanced Medical Solutions (LON: AMS). It was suggested that the offer could be around 280p/share. The share price dropped 17.8% to 203p.

Surveillance systems supplier Synectics (LON: SNX) says trading is in line with expectations in the first five months of the year. New contracts have been won in the leisure and infrastructure sectors, although energy sector projects have been delayed. There will be a second half weighting to the results. The energy sector demand will need to recover to meet full year forecasts. The business restructuring continues. Bob Holt is stepping down from the board to focus on Earnz (LON: EARN). The Synectics share price fell 14.6% to 175p.

Oil and gas company Sintana Energy (LON: SEI) has raised $11.5m at 22.5p/share. This will fund the company’s work programme for two years, including the share of the costs of the Chevron-operated Nabba-1 exploration well. Cash was $8.2m at the end of March 2026. NAV will be diluted by 11% to 38p/share. The share price declined 9.43% to 24p.

Ethernity Networks (LON: ENET) chief executive sold 6.86 million shares, reducing his stake to 3.65%. The share price slipped 7.69% to 0.0012p.

North Yorkshire Council has rejected the planning application for an appraisal well at the Cloughton gas discovery, where Europa Oil and Gas (LON: EOG) has a 40% interest. The council’s planning officers had recommended approval. Options are being assessed. The share price dipped 6.9% to 1.35p.

Europa Oil & Gas shares fell on Monday after a setback at its Cloughton gas appraisal well in North Yorkshire, with the Local Planning Authority refusing planning permission despite a clear recommendation from the council’s own planning officers to approve it.

Europa Oil & Gas shares were down 8% at the time of writing.

The firm said the decision goes against the guidance of the council’s own planning officers, and 13 independent experts who produced separate reports supporting the application, all of which fed into the officers’ approval recommendation.

Europa has flagged its strong disagreement with the basis of the refusal and is now weighing its options. The company is confident that planning permission will be approved on appeal, which now appears to be the likely next step.

Europa Oil & Gas has operations across the UK and assets in West Africa. Much of the firm’s focs of late has been on North Yorkshire so today’s announcement will come as a disappointment for investors.

Alternative Income REIT has responded to a proposal from its largest shareholder, Glenstone REIT, regarding a possible cash offer for the rest of the issued share capital announced on Friday.

Glenstone has a stake of around 24% in Alternative Income REIT and

Alternative Income REIT notes that the approach is not evaluable, as it lacks a price, range, or terms, so the ball is now firmly back in Glenstone’s court to put forward a proposal capable of proper consideration.

It’s not Glenstone’s first approach as they attempt to recover their investment in Alternative Income REIT. In November 2025, Glenstone put forward a 66.5p-per-share cash proposal, representing a 20.8% discount to NAV and 11.3% below the prevailing share price. This, as one would imagine, was unequivocally rejected as fundamentally undervaluing the company.

A more recent letter from Glenstone added further requests, including a managed wind-down, an additional board seat, access to confidential information, and a potential transfer of the listing to TISE. The Board has declined to release commercially sensitive data without a properly evaluable offer on the table, and reaffirmed the Main Market as the appropriate venue.

Notably, Alternative Income REIT directors pointed to AEW UK REIT’s offer at a 3% discount to NAV, saying this is ‘capable of recommendation’ and providing a level at which they think an offer should be made.

Anglo American has agreed to sell its Australian steelmaking coal portfolio to Dhilmar Limited for up to US$3.875bn in cash, marking a major step in the group’s portfolio simplification ahead of its planned merger with Teck.

The consideration comprises US$2.3bn payable upfront at completion, with a further price-linked earnout of up to US$1.575bn. The proceeds will be used to reduce net debt, helping shore up the balance sheet as Anglo restructures around its preferred copper, iron ore and crop nutrients core.

With this deal, Anglo completes its exit from Australian steelmaking coal, taking aggregate cash proceeds from the segment to up to US$4.9bn, including the earlier US$1bn sale of its Jellinbah interest.

Duncan Wanblad, CEO of Anglo American, said: “Our agreement for Dhilmar to acquire our steelmaking coal business in Australia is testament to the high quality of these assets and our people. Dhilmar’s leadership brings considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada. We will work together with the Dhilmar team and with our workforce, local communities, government, customers, and partners to ensure a successful transition.

“This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck. Through this transaction, we will complete our exit from steelmaking coal, delivering aggregate cash proceeds of up to US$4.9 billion, given the prior completion of the sale of our interest in the Jellinbah mine for approximately US$1 billion.”

Mercantile Ports and Logistics (LON: MPL) has appointed former US government and CIA administrator Marty Martin to the board and Karanpal Singh has stepped down. The company believes that Marty Martin will help with the ongoing legal process in relation to try to regain control of the Karanja Terminal & Logistics subsidiary. Mercantile says it can repay the related debt, but the proposal was rejected by the consortium of banks. They prefer an alternative plan from Adani Ports and Special Economic Zone Limited and that has been approved by the courts. The company has appealed and a further hearing is due on 8 June. The share price jumped 324% to 1.8p.

Vossloh has launched a recommended bid for Cordel (LON: CRDL). The 12.4p/share cash offer values the transport infrastructure analytics technology provider at £29m. The share price has not been that high since the beginning of 2022. Vossloh is involved in the rail sector and wants to provide digital services as well as move into the US market. Cordel and Vossloh are working together in Europe. The share price soared 94.2% to 11.65p.

Bradda Head (LON: BHL) and Tyfast Energy have signed a memorandum of understanding to develop a domestic US lithium supply chain for next-generation LVO battery anodes. Bradda Head has lithium assets in Arizona and Nevada, and he will assess feedstock and processing pathways. Tyfast will focus material qualification and performance testing. The share price gained 65.1% to 3.55p.

IT managed services provider Tialis Essential IT (LON: TIA) reported 2025 results showing a decline in revenues from £20.8m to £17.7m and pre-tax profit was one-third lower at £800,000. Net debt was reduced to £2.4m. Organic growth will be complemented by acquisitions. Multi-year contracts have been won that will enable a recovery in revenues and profit. A capital restructuring would enable dividends to be paid in the future. The share price rose 59.7% to 53.5p.

FALLERS

Dotlines Global (LON: DOTL) joined AIM last Tuesday after completing the reverse takeover of Main Market company Ikigai Ventures. Dotlines and Audra Solutions were acquired for £55.7m in shares and the enlarged share capital was valued at £57.9m at the issue price of 9.5p/share. Dotline;s Sohoj platform is a digital lifestyle offering for B2C and B2B2C customers with a focus on migrant populations in Malaysia. There are plans to expand the platform into the UK and Saudi Arabia. This generated 2024 revenues of £20.5m and pre-tax profit of £998,000. The latest interim revenues are £10.3m, while pre-tax profit was £713,000. The share price was suspended at 42p and started trading on AIM at 10p. The share price improved to 13.5p, but that was still 67.9% lower than the last Main Market price.  

Telematics company Microlise (LON: SAAS) is focusing on direct business as renewals from OEMs are suffering pressure on pricing and the loss of contracts. Direct annualised recurring revenues were 16% higher, despite delays to some contracts, but this was partly offset by a 13% reduction in the OEM figure. Pre-tax profit slumped from £6.5m to £2.6m. Net cash increased to £16.7m. Capital investment will be sharply higher in 2026 and 2027 and that will use up some of the cash. The final dividend was raised from 1.24p/share to 1.3p/share. Pre-tax profit could recover to £3.3m this year. The share price slipped 31.1% to 42p.

ValiRx (LON: VAL) is raising up to £1.155m at 0.2p/share. That includes a retail offer of up to £150,000. The drug developer is raising the cash to push forward the development of its IP. The share price dropped 24.5% to 0.2p.

Telecoms services provider Maintel (LON: MAI) has raised £3m at 80p/share and a further £2m via a three-year convertible loan note. A retail offer could raise up to £1m. A new bank facility agreement is a condition of the placing. This will dilute current year earnings by 13% to 8.1p/share before any shares taken up in the retail offer. The share price declined 22.9% to 92.5p.

The strength of the AI trade was underscored by AI chipmaker Cerebras’s IPO yesterday, which saw the stock soar 68% in its debut yesterday.

AI infrastructure stocks are rocketing higher, and the chipmaker couldn’t have picked a better time to go public. After listing at $185, Cerebras finished the day at $311, valuing the company at $95 billion.

The company raised $5.5bn to accelerate the growth of its AI chips that are designed to be faster than alternatives.

Cerebras Systems builds high-speed AI infrastructure around its Wafer-Scale Engine 3 (WSE-3), a processor 58 times larger than a leading GPU, delivering inference up to 15 times faster on open-source models while using a fraction of the power.

The company’s customers span corporations, research institutes and governments across four continents, with deployment available on-premises and in the cloud.

Cerebras generated $510m in revenue last year and reported earnings of $238m. The market cap looks eyewateringly high at $95bn, but given the sector’s growth pace, they may justify it in the coming years.