Investing
FTSE 100 hits one-month high, Countryside soars after takeover approach
Global Banking & Finance Review®
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(Reuters) -UK’s FTSE 100 hit over one-month highs on Monday, as an easing of China’s COVID-19 curbs lifted spirits across Asian and European markets, while Countryside soared after its shareholder made a second approach to buy the homebuilder.
(Reuters) -UK’s FTSE 100 hit over one-month highs on Monday, as an easing of China’s COVID-19 curbs lifted spirits across Asian and European markets, while Countryside soared after its shareholder made a second approach to buy the homebuilder.
The blue-chip FTSE 100 climbed 0.4% to hit its highest level since April 22, while the midcap index jumped 1.3% to hit its highest since May 3.
Asian and European stocks gained on news that Shanghai authorities will cancel many conditions for businesses to resume work from Wednesday, easing a city-wide lockdown that began two months ago.
“A reopening of key economic hubs in China and suggestions that the U.S. Federal Reserve might slow the pace of interest-rate hikes are helping to boost sentiment, at least in the short term,” Russ Mould, investment director at AJ Bell said in a note.
Wall Street closed sharply higher on Friday as signs of peaking inflation and consumer resiliency led to optimism that the Fed will be able to tighten monetary policy without tipping the economy into recession. [.N]
Gains were broad-based in UK stocks, with spirits maker Diageo, consumer giant Unilever, and oil major BP providing the biggest boost to the FTSE 100.
Countryside Partnerships surged 24.8% after Inclusive Capital, which owns about 9.2% of Countryside, said it is looking to engage with homebuilder for a possible takeover offer valuing it at about 1.47 billion pounds ($1.86 billion).
The wider housing index climbed 2.7%.
“The bid is testament to the appeal of the UK housebuilding sector which, regardless of the economic backdrop, should benefit in the long term from supportive supply and demand dynamics,” added Mould.
Ted Baker rose 2.7% after a report said that Juicy Couture owner Authentic Brands is the British fashion chain’s preferred bidder and that the two firms could agree on a 300 million pound ($379.35 million) deal.
Martin Sorrell’s digital advertising group S4 Capital gained 3.4% as it reiterated its full-year outlook, saying it expected robust demand despite forecasts of slowing global economic growth.
(Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, reflecting the performance of the UK stock market.
A takeover approach occurs when a company seeks to acquire another company, often by proposing a purchase of its shares or assets to gain control.
Market sentiment is the overall attitude of investors toward a particular security or financial market, often influenced by news, reports, and economic indicators.
A shareholder is an individual or institution that owns shares in a company, entitling them to a portion of the company's profits and assets.
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