London close: Stocks finish mixed after Reckitt compo blow

(Sharecast News) - London's equity markets finished in a mixed state at the end of a quiet trading session on Friday, after another hotter-than-expected US inflation reading overnight.

Despite the subdued atmosphere, notable gains were seen for International Airlines Group and Vodafone.

The FTSE 100 ended the day with a slight decline of 0.2%, settling at 7,727.42 points, while the FTSE 250 index managed to eke out a modest gain of 0.14%, closing at 19,512.91 points.

In currency markets, sterling was last down 0.13% on the dollar to trade at $1.2736, while it declined 0.2% against the euro, changing hands at €1.1694.

"US consumer sentiment is weakening as gas prices rise, the Empire State index fell sharply, and this week's inflation readings have come in hotter than expected," said IG chief market analyst Chris Beauchamp.

"This isn't the kind of cheery picture that can prop up equity markets looking desperately for a new catalyst to drive a new phase in this rally.

"Aside from the Russell 2000, US markets are broadly lower, and with the Fed meeting now in everyone's sights we could see this extend into the first part of next week at least."

Beauchamp added that the FTSE 100 was ending the session on a quiet note, after moving higher earlier in the day.

"Reckitt Benckiser shares were delivered a late blow this afternoon on news it will have to pay a fine in a US baby formula case.

"The share price slumped to a ten-year low, and the outsize reaction to the fine seems to suggest more litigation could be on the way."

Chinese house prices decline further in February

It was a quiet day on the macroeconomic front, but official data released overnight showed China's property market facing further strain amid a continued decline in house prices.

According to the National Bureau of Statistics, new home prices saw a year-on-year decrease of 1.4% last month, doubling January's 0.7% decline.

It marked the most substantial drop since January last year, and extended the streak of monthly declines to eight in a row.

Calculations by Reuters indicated that month-on-month, new house prices experienced a 0.3% decrease, aligning with the decline seen in January.

"Given the heavy weighting of property in household portfolios, it is of the utmost importance for China to stabilise the property market if it is to restore confidence," said Lynn Song, chief Greater China economist at ING.

"Declining property prices will create a negative wealth effect, acting as a headwind to consumption.

"We anticipate that real estate will remain the main drag on growth in 2024, and this drag is likely to persist over the medium term, as it will take time to work through excess housing inventories."

IAG and Vodafone rise, Reckitt down on baby formula compensation

On London's equity markets, British Airways and Iberia owner IAG soared 6.23% after it received upgrades to 'outperform' from both Raymond James and BNP Paribas Exane.

Vodafone Group also made substantial gains, climbing 5.69%, following news of Swisscom's acquisition of its Italian unit for €8bn, positioning it as Italy's second-largest broadband provider.

Other notable gainers included Mondi and Smurfit Kappa Group, rising by 1.56% and 1.55% respectively, driven by positive analyst upgrades.

British Land and Derwent London also saw increases of 0.99% and 0.39% respectively, benefiting from upgrades to 'buy' at Shore Capital.

Scottish Mortgage Investment Trust advanced 5.12% after announcing plans for £1bn in buybacks over the next two years, while Volution Group added 2.59% after reporting anticipated earnings per share exceeding consensus expectations.

On the downside, Barratt Developments and Redrow experienced declines of 0.73% and 1.28% respectively, following the UK competition regulator's announcement of an initial investigation into Barratt's takeover of Redrow.

Reckitt Benckiser Group faced a drop of 2.06%, amid concerns about baby formula compensation, with an Illinois jury ordering its unit Mead Johnson to pay $60m for negligence related to the death of a premature baby.

Currys slumped 5.07% after Chinese e-commerce giant JD.com announced it would not make an offer for the company.

Bank of Georgia Group also fell by 6.47% despite reporting increased full-year income, while Intertek Group experienced a 2.08% decline following a downgrade to 'sell' from 'hold' at Shore Capital, citing valuation concerns.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 7,727.42 -0.20%

FTSE 250 (MCX) 19,512.91 0.14%

techMARK (TASX) 4,473.22 -0.69%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 158.35p 6.31%

Vodafone Group (VOD) 69.85p 5.69%

Scottish Mortgage Inv Trust (SMT) 824.20p 5.53%

Endeavour Mining (EDV) 1,479.00p 2.35%

Antofagasta (ANTO) 1,949.50p 2.07%

Barclays (BARC) 177.90p 2.01%

HSBC Holdings (HSBA) 598.00p 1.98%

Centrica (CNA) 132.30p 1.97%

Glencore (GLEN) 425.20p 1.91%

Admiral Group (ADM) 2,734.00p 1.90%

FTSE 100 - Fallers

Reckitt Benckiser Group (RKT) 4,486.00p -14.58%

GSK (GSK) 1,649.60p -2.26%

Intertek Group (ITRK) 4,846.00p -2.02%

Flutter Entertainment (DI) (FLTR) 17,115.00p -1.98%

Smith & Nephew (SN.) 1,063.00p -1.89%

British American Tobacco (BATS) 2,340.50p -1.68%

Halma (HLMA) 2,211.00p -1.51%

Sage Group (SGE) 1,213.50p -1.26%

B&M European Value Retail S.A. (DI) (BME) 540.40p -1.21%

Rentokil Initial (RTO) 473.40p -1.11%

FTSE 250 - Risers

FirstGroup (FGP) 187.70p 13.41%

PPHE Hotel Group Ltd (PPH) 1,335.00p 5.12%

Hochschild Mining (HOC) 113.10p 4.14%

Morgan Advanced Materials (MGAM) 277.50p 3.54%

ICG Enterprise Trust (ICGT) 1,240.00p 3.33%

Me Group International (MEGP) 169.60p 3.04%

Elementis (ELM) 137.00p 3.01%

4Imprint Group (FOUR) 6,200.00p 2.82%

Tullow Oil (TLW) 27.96p 2.79%

Centamin (DI) (CEY) 106.50p 2.60%

FTSE 250 - Fallers

Bank of Georgia Group (BGEO) 4,845.00p -6.47%

Helios Towers (HTWS) 79.90p -6.28%

Close Brothers Group (CBG) 335.80p -4.98%

Renishaw (RSW) 4,008.00p -4.34%

Currys (CURY) 56.60p -3.90%

Barr (A.G.) (BAG) 520.00p -3.53%

Kainos Group (KNOS) 1,039.00p -2.99%

Aston Martin Lagonda Global Holdings (AML) 161.20p -2.95%

Ninety One (N91) 168.00p -2.95%

Dunelm Group (DNLM) 1,054.00p -2.86%