The FTSE 100 was on the verge of making history on Friday as London’s leading index edged towards its all time highs.

Investors will be closely watching the index to see if the 7,877 closing high is breached today. The highest intraday level for the FTSE 100 is 7,903.

Although the FTSE 100 is poor representation of the UK economy, better than expected UK GDP figures have helped sentiment and sent the index through 7,800 to trade at 7,827 at the time of writing.

UK GDP

Fears of a UK technical recession receded on Friday after the economy expanded 0.1% in November as the services sector performer better than expected. The World Cup also boosted activity as football fans flocked to pubs for England games.

“The UK economy is doing its best to avoid falling into a technical recession with another month of growth in November. We’ll have to wait for the final quarter figures for 2022 – out next month – to confirm whether it has managed to do that,” said Ed Monk, Associate Director, Personal Investing at Fidelity International.

3 key messages from the just released UK GDP numbers
With a 0.1% expansion, growth surprised on the upside (consensus forecast was -0.2%);
Services continued to power growth (manufacturing contracted);
Judging from certain GDP components, the labor market remains relatively tight

— Mohamed A. El-Erian (@elerianm) January 13, 2023

UK Banks

UK Banks were among top risers on Friday as investors reacted to the upbeat economic data and banking results from the US.

Lloyds shares were up 2% and approaching the key psychological level of 50p and Natwest was up 2.2%.

JP Morgan, Bank of America, Wells Fargo and Citigroup are all set to report on Friday. Those received at the time of writing were were broadly inline with estimates but Wells Fargo shares were down 4% pre-market on a $3.3bn Q4 operating loss.

JP Morgan’s EPS was better than expected.

Morses Club shares were trading a whopping 220% higher at 1.5p as their potential delisting was questioned after major shareholder sold their stake in the company.

The doorstep lender had yesterday announced a proposal to delist from AIM. For the proposals to go ahead, 75% of shareholders are required to vote for the delisting. Yesterday, the company said they had the backing of 51% of shareholders.

However, the announcement today that JO Hambro Capital Management had sold their entire stake in the company will change the dynamics dramatically and raises the question whether the 75% threshold will be met.

Morses Club shares have suffered dearly since the beginning of the pandemic and the board say delisting will provide better access to private capital.

Belluscura, the portable oxygen unit manufacturer and distributer, announced a substantial expansion of their distribution channels and sharply higher sales in a trading update on Friday.

By the end of 2022, Belluscura had shipped or received orders for 2,850 X-PLOR units and shipped 1,226 units, dramatically higher than the 377 shipped in the same period last year.

The company said adjusted EBITDA loss was expected to be inline with expectations for the year.

Following the update, Belluscura shares had jumped over 4% to 46p in early trade on Friday, before reversing as the session progressed.

Belluscura cash balances stood at $1.8m while inventory and inventory deposits combined with cash balances total $11.8m.

“During the year we have made considerable progress. We have enhanced our production, quality accreditation and supply chain, positioning us well to deliver on the demand we are seeing for our devices, as we expand our distribution partners and geographical reach,” said Robert Rauker, CEO of Belluscura.

“Market reception for the next generation X-PLOR and Nomad App has been extremely positive, with an encouraging level of forward orders.”

Belluscura distribution expansion

Belluscura took the decision to take manufacturing in-house last year due to high demand. This has helped achieve a lower production cost with 536 X-PLOR units produced in-house so far. There have been zero returns due to defects.

Manufacturing is set is ramp up in 2023 as demand increases and Belluscura launches the DISCOV-R oxygen units. DISCOV-R are lighter in weight than competitors and have the ability to deliver more oxygen.

The company are expanding their distribution network through an agreement with VGM Group which has yielded 17 new agreements in the last 3 months.

A South African deal with MedHealth Supplies attracted over 1,000 orders and sold out the first shipment within 48 hours.

Tekcapital portfolio company

Belluscura was established by Tekcapital (LON:TEK) who identified the need to help the millions of people suffering from breathing-related diseases such as Chronic Obstructive Pulmonary Disease.

Tekcapital developed Belluscura ready for an AIM listing in 2021. Tekcapital retains a 12% holding in Belluscura.

Lithium Chile has expanded the area of their Salar de Llamara Project by 21,700 hectares to now total 35,500 hectares ahead of transient electromagnetic analysis of the project, and a conditional drill programme later in 2023.

The project has previously returned lithium values of more than 350mg/l and the company now hopes for further positive results in Chile after recent success in their Argentinian exploration campaign.

“Following the success of our exploration program in Arizaro, Argentina, we are eager to commence operations on the vast portfolio of prospective lithium projects the Company owns in Chile,” said Michelle DeCecco, Vice President & COO.

“Recent movements and policy statements from Chiles, Ministry of Mines has increased the interest in Chilean lithium projects; Lithium Chile is in a strong position to capitalize on that interest.”

Elsewhere in Chile, Lithium Chile is pushing ahead with a drill campaign at their Salar de Los Morros project and will undergo rock sampling at Aguas Calientes.

Lithium Chile’s portfolio of lithium assets consists of 111,978 hectares covering sections of 11 salars and 1 laguna complex in Chile and 20,800 hectares in Argentina.

Strong results from FTSE 100 constituents helped drive further gains for the index on Thursday as investors digested updates from Persimmon, Tesco and Whitbread.

UK equities were also buoyed by confirmation of a falling US inflation rate. Headline US CPI for December came in bang in line with expectations at 6.5%. A reduction in the US inflation rate had largely been priced in and the meeting of estimates caused little initial reaction in stocks.

“No nasty surprises today. Inflation is making all the right noises for stock bulls,” said James Bentley, Director of Financial Markets Online.

The FTSE 100 was trading at 7,773, up 0.6%, at the time of writing and continued to break to the highest levels for four years.

The FTSE’s gains were made earlier in the session following upbeat corporate update in sectors with strong links to the UK economy.

Persimmon

Housebuilder Persimmon was storming ahead in afternoon trade, gaining 6.3%, after the company provided an update on trading for the end of 2022, accompanied by a sharp decline in forward sales. The group’s forward sales are down 36% on the same period last year.

The jump in Persimmon shares today suggests the destruction of their share price last year more than priced in a downturn in housing markets, and there is room for a rebound. These sentiments were also evident in Barratt Developments shares which gained 5.5%.

“Persimmon have followed in the footsteps of rival housebuilder Barratt, warning of a material slowdown in demand over the fourth quarter as consumers battle higher mortgage costs. This fed through to lower sales rates, higher cancellations, and a hefty drop in forward orders,” said Matt Britzman, Equity Analyst at Hargreaves Lansdown

“Though, it must be said, a lot of that was largely expected.”

Tesco

Tesco’s held their own during the Christmas trading period by maintaining market share and recording a 7.9% increase in group retail sales. The company will lock in prices on 1,000 products through to Easter to fight off pressures from the discounters, likely at the cost of margins. Tesco shares rose tentatively 0.9% to 254p.

Tesco was the latest in a long line of retail companies to dispel fears about the UK consumer with a strong set of results for the Christmas trading period.

Total UK sales excluding fuel during the festive period rose 7.2% as group retail sales jumped 7.9%. The Booker business unit sales increased 11.7%.

“Tesco has followed in Sainsbury’s footsteps to record an exceptional set of results over the Christmas and third quarter period. The group’s dominant market share has also helped keep tills ringing, despite the growing pressure on household incomes, and the unstoppable rise of the discount supermarkets,” said Sophie Lund-Yates, Lead Equity Analyst at Hargreaves Lansdown.

“The other string to Tesco’s bow is wholesaler Booker, which offers a diverse source of income. Especially as catering trends normalise, the group’s benefitting from the wheels of hospitality turning once more.”

Tesco maintained a strong market share of 27.5% as they take on discounters with value lines, a similar strategy to Sainsbury’s. Tesco have laid down plans to lock prices on 1,000 products through to Easter to help those struggling with rising prices.

The shift to online shopping during the pandemic has proved to be sticky business for Tesco with online sales 59% higher than pre-pandemic levels during the most recent period.

Like all supermarkets, the focus will be Tesco’s margins in upcoming results as they fight to maintain market share while input costs increase.

Tesco shares were marginally higher at 245p at the time of writing.