Retailers lead gains in London stocks, weaker pound boosts
London stocks rose, led by retailers, with the FTSE 100 up 0.23% and FTSE 250 up 0.82%. Kingfisher surged 15.2% after raising its profit forecast. The weaker pound boosted exporters, while surveys indicated a slowdown in UK business activity. Serco gained 4.4% on a US Air Force contract, and Smiths Group reported strong profits. However, the healthcare sector declined, with Oxford BioMedica down 9.2%. GSK shares fell 0.7% amid production ramp-up requests for leucovorin.
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FTSE 100 up 0.23%, FTSE 250 rises 0.82%
Kingfisher surges on raising full-year profit forecast
Serco rises on $972 million US Air Force contract
Sterling dips after gloomy PMI surveys
Sept 23 (Reuters) - London stocks edged higher on Tuesday, led by retailers, while a weaker sterling further boosted the exporter-heavy FTSE 100 index.
The benchmark FTSE 100 (.FTSE) rose 0.23% at 0959 GMT while the domestically focused FTSE 250 (.FTMC) gained 0.82%.
An index of retailers’ stocks (.FTNMX404010) rose about 3%, boosted by a 15.2% surge in Kingfisher (KGF.L) after the home improvement retailer raised its full-year profit outlook after a better-than-expected first half. Its shares were on track for their highest single-session percentage gain since 1986.
Other major retailers also advanced, with JD Sports Fashion (JD.L) rising 1.6%, Frasers (FRAS.L) up 2.3%, and Howden Joinery (HWDN.L) gaining 3.5%.
The pound weakened, giving a further lift to export-oriented firms, after a survey showed British business activity slowed in early September.
Meanwhile, a separate survey showed on Tuesday that British firms have reported a loss of momentum and confidence ahead of possible new tax increases in Finance Minister Rachel Reeves’ next budget in November. It also showed another drop in hiring.
Last week, the Bank of England held its benchmark rate at 4% and said it is monitoring for signs that inflation pressures are waning before it reduces borrowing costs again.
Among other stocks, Serco Group (SRP.L) was among the top gainers in the FTSE 250, up 4.4%, after a unit of the British outsourcing firm secured a contract to provide training and simulator services to the U.S. Air Force.
Engineering firm Smiths Group (SMIN.L) reported profit and revenue above market estimates, helped by strong demand for upgraded baggage-screening detectors and a recovery in the semiconductor market. Its shares hit an all-time high in early trading but later fell 0.8%.
The broader healthcare sector (.FTNMX201030) declined 1.3% with Oxford BioMedica’s (OXB.L) 9.2% loss after the British cell and gene therapy manufacturer reported its half-year results.
Eyes were also on GSK (GSK.L) as U.S. President Donald Trump’s administration asked drug companies to be prepared to ramp up production of leucovorin, a form of folic acid, as a treatment for some autism patients. GSK previously manufactured leucovorin and sold it under the name Wellcovorin.
Shares of the drugmaker fell 0.7% in early trading.
