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FTSE 100 up 0.2%, FTSE 250 gains 0.1%
UK defence stocks up as Norway picks Britain for frigate deal
Kainos jumps on upbeat annual outlook
Domino’s Pizza rises on new share buyback, reaffirmed forecast
Sept 1 (Reuters) – London equities edged higher on Monday, with precious metal miners and defence stocks leading gains, while some positive corporate updates boosted sentiment.
The blue-chip FTSE 100 advanced 0.2% by 1014 GMT, following its biggest weekly decline in almost five months on Friday. The domestically focussed midcap index rose 0.1%.
Defence stocks were among top sectoral performers after Norway said it had chosen Britain as its strategic partner for the acquisition of new frigates, in a deal worth some 10 billion pounds ($13.51 billion).
BAE Systems rose 1.9%, Babcock advanced 3.2%, while Rolls-Royce gained 1.9%.
Precious metal mining stocks rose 2.9%, tracking gold prices that hit a more than four-month high. Hochschild Mining rose 5.9%, Fresnillo and Endeavour Mining added 2% and 3.1%, respectively.
The FTSE 100 hit a record high in August, as global shares rallied on rising bets on a U.S. rate cut in September, but ended the month on a turbulent note, registering four straight sessions of declines.
Heavyweight banking stocks, which fell on Friday after a think-tank recommended a new tax on lenders as a possible way for finance minister Rachel Reeves to raise revenue, steadied on the day with NatWest, Lloyds and Barclays trading higher.
On the flip side, personal goods led sectoral declines with Burberry down 1.2%.
Among corporate updates, IT software developer Kainos jumped 19.7%, to top the mid-cap index, on an upbeat annual outlook.
Domino’s Pizza Group rose 7.5% on reaffirming its annual earnings forecast and launching a new share buyback.
A survey showed Britain’s manufacturers suffered a fresh setback in August with new orders dropping due to worries about trade tensions abroad and tax increases at home.
Meanwhile, a U.S. appeals court ruled on Friday that most of U.S. President Donald Trump’s tariffs are illegal, although it allowed them to remain in place until mid-October to permit further appeals.
Trump has vowed to take the case to the Supreme Court and trade experts say the administration is preparing alternative plans to be able to proceed with its tariffs.
Trading is expected to be light throughout the day due to a U.S. holiday. (Reporting by Sukriti Gupta; Editing by Mrigank Dhaniwala)