London close: Blue chips fall for second day as oil prices rise

(Sharecast News) - Stocks in London fell again on Friday as oil prices rose for the first time in four days after the US and Iran exchanged fire in the vital Strait of Hormuz.

Despite the strikes - which each side claimed had been initiated by the other - US president Donald Trump insisted the ceasefire was ongoing and that talks with Iran were going very well. Brent crude rose 1.5% to $101.50 after three straight declines saw it dip below the $100 mark this week for the first time since 27 April.

The UK blue chip FTSE 100 index finished 0.4% lower at 10,233.07, falling for the second straight day to finish the week down 1.4%. However, it still outperformed major indices in Europe with benchmarks in Frankfurt, Paris and Madrid each losing 1% or more.

US markets, meanwhile, were putting in decent gains after a stronger-than-expected non-farm payrolls report, with 115,000 private sector jobs added in April.

"US stock indices powered ahead with several hitting record highs as strong earnings and Friday's positive jobs data offset risks from the war in the Middle East and US consumer sentiment dropping to a record low," said Axel Rudolph, chief technical analyst at IG.

"European markets didn't fare so well, though, with particularly Europe's largest economy and stock market - the DAX 40 - extending Thursday's sharp sell-off amid concerns over high energy prices with Brent crude trading back around the $100 mark amid heightened tensions in the Gulf region."

On home shores, results of the local elections rolled in, with major losses for Labour and gains for Reform, prompting 30-year Gilt yields to stay elevated.

"The election results have fuelled speculation that Keir Starmer might struggle to cling on as prime minister," said Dan Coatsworth, head of markets at AJ Bell. "Bond markets have been spooked by the prospect of political change as the obvious challengers, Angela Rayner and Andy Burnham, might push for greater government borrowing and spending, which could take gilt yields even higher."

Intertek, IAG provide a drag

Intertek slid as it rejected Swedish private equity firm EQT's sweetened offer of £58 a share, saying it "significantly undervalues" the company and its future prospects, and that there was major execution risk given its conditional nature.

IAG also fell after warning that annual profit would be lower than previously expected as rising fuel costs due to the conflict in the Middle East start to bite. Based on the fuel curve as at 5 May 2026, IAG, which also owns Aer Lingus and Vueling, expects fuel costs of around €9bn for the year, up from €7.1bn previously forecast.

Going the other way, BT Group was the top gainer on the FTSE 100 on the back of broker notes from Goldman Sachs and JPMorgan. JPM lifted its price target on BT to 310p from 300p and maintained its 'overweight' rating as it said its analysis suggests we are past peak pain on altnet competition, and that Openreach's line loss should now steadily improve.

Workspace was weaker after saying it had rejected a proposal by activist investor Saba Capital to wind down the company over a 12-month period to address the discount to net asset value.

British Land and Land Securities were both higher. In a research note in which it downgraded shares of Workspace, Barclays said it preferred British Land and Land Securities for London office.

Market Movers

FTSE 100 (UKX) 10,233.07 -0.43%

FTSE 250 (MCX) 22,849.38 -0.15%

techMARK (TASX) 5,924.99 0.23%

FTSE 100 - Risers

BT Group (BT.A) 236.20p 6.59%

Whitbread (WTB) 2,410.00p 3.79%

JD Sports Fashion (JD.) 75.08p 2.85%

Vodafone Group (VOD) 118.65p 2.28%

NATWEST GROUP (NWG) 579.80p 1.51%

British Land Company (BLND) 391.20p 1.50%

Entain (ENT) 548.00p 1.44%

SEGRO (SGRO) 717.20p 1.24%

Croda International (CRDA) 2,845.00p 1.21%

InterContinental Hotels Group (IHG) 149.70p 1.11%

FTSE 100 - Fallers

Lion Finance Group (BGEO) 11,030.00p -4.75%

Babcock International Group (BAB) 1,052.50p -4.32%

Metlen Energy & Metals (MTLN) 36.30p -3.97%

Rolls-Royce Holdings (RR.) 1,219.80p -3.11%

International Consolidated Airlines Group SA (CDI) (IAG) 385.00p -2.83%

Prudential (PRU) 1,135.00p -2.83%

BAE Systems (BA.) 1,933.80p -2.79%

Intertek Group (ITRK) 4,910.00p -2.70%

Fresnillo (FRES) 3,572.00p -2.48%

St James's Place (STJ) 1,182.50p -2.39%

FTSE 250 - Risers

PPHE Hotel Group Ltd (PPH) 1,562.00p 3.86%

Ithaca Energy (ITH) 262.20p 3.64%

Man Group (EMG) 270.20p 3.21%

AEP Plantations (AEP) 1,984.00p 3.01%

Zigup (ZIG) 416.00p 2.97%

Computacenter (CCC) 4,028.00p 2.83%

Wizz Air Holdings (WIZZ) 1,014.00p 2.63%

FirstGroup (FGP) 164.70p 2.49%

Pennon Group (PNN) 538.50p 2.38%

NCC Group (NCC) 140.20p 2.04%

FTSE 250 - Fallers

Chemring Group (CHG) 480.60p -5.21%

Trainline (TRN) 223.40p -4.86%

Trustpilot Group (TRST) 258.60p -4.51%

Ceres Power Holdings (CWR) 717.00p -4.40%

Telecom Plus (TEP) 1,046.00p -4.21%

Hochschild Mining (HOC) 641.00p -4.14%

Avon Technologies (AVON) 1,662.00p -3.60%

W.A.G Payment Solutions (EWG) 105.00p -3.31%

Pan African Resources (PAF) 151.14p -3.25%

Ibstock (IBST) 99.70p -3.20%