Market update: FTSE 100 ends month on a high, upgrade lifts Hiscox
09:54 , Graeme EvansA stronger month for the FTSE 100 index today ended on a positive note after gains for Unilever, Shell and other heavyweights drove a 0.6% improvement.
The rise of 50.94 points to 8767.39 left London’s top flight up by about 3.5% for May, representing the first monthly advance since February.
Calmer conditions after the tariff turmoil seen in early April have pushed the top flight back within sight of the record high of 8871 set in early March.
Today’s advance came despite fresh uncertainty over US trade levies after a US appeals court last night overturned an earlier ruling that they were unlawful.
Wall Street futures were slightly lower following the latest twist, while in Asia the Nikkei 225 and Hang Seng index surrendered the strong gains seen yesterday.
On London’s risers board, BT Group lifted 3p to 176.95p while Shell advanced 21.5p to 2463p amid a recovery for the Brent Crude price at $63.65 a barrel.
Unilever lifted 39p to 4717p and fellow consumer goods giant Reckitt Benckiser rose 86p to 5032p, with the latter boosted by UBS’s unchanged price target of 7700p.
Positive broker commentary also supported the insurer Hiscox, which added 2% or 22p to 1275p after Exane BNP raised its recommendation to Outperform with a 1400p target.
M&G shares led the top flight after the savings and investment business unveiled a strategic partnership that will see Japan’s Dai-ichi Life take a 15% stake.
As asset management partner for Dai-ichi Life in Europe, M&G expects the alliance will deliver $6 billion of new business flows.
The shares jumped 6% or 12.5p to 236.9p, their highest level in over a year.
Gas firms given £8m penalties for missing leak targets
08:47 , Graeme EvansThree gas distribution companies are to pay a combined £8 million in penalties after they failed to attend some gas emergency reports on time.
Regulator Ofgem said Cadent Gas, Scotland Gas Networks and Southern Gas Networks will pay into its voluntary redress fund, which provides money for projects that support vulnerable energy consumers.
The penalties relate to missed targets between 2022 and 2023.
Ofgem’s rules require companies which manage the gas network to attend reports of suspected gas leaks within one or two hours, depending on the incident, in 97% of cases.
Southern Gas Networks will pay £5.8 million, Cadent will pay £1.5 million and Scotland Gas Networks £700,000.
NatWest set for final Treasury sale of shares
08:36 , Graeme EvansThe government’s last-remaining NatWest shares are reportedly set to be sold today, drawing a line under one of the banking industry’s biggest bailouts.
The holding stood at 83% when NatWest, then trading as Royal Bank of Scotland, was rescued in a £45.5 billion bailout in 2008.
Sky News reported yesterday that the Treasury is preparing to offload its remaining stake of roughly 0.1% on Friday. It said that a statement could follow today or Monday morning.
The shares were today unchanged at 523p, having risen by 65% in the past year.
FTSE 100 opens higher, M&G shares up 8%
08:12 , Graeme EvansM&G shares have jumped 8% or 17.3p to 241.7p, fuelled by the disclosure that Japan’s Dai-ichi Life is taking a 15% stake as part of a strategic alliance.
The FTSE 100 index is 24.21 points higher at 8740.66, having fallen in the previous two sessions.
Stocks in positive territory during a quiet morning for corporate news include Tesco, Rolls-Royce and Lloyds Banking Group.
Broker upgrades boosted the shares of Lloyd’s of London insurers Hiscox and Beazley, up 40p to 1293p and 15p to 946p respecitvely.
Rio Tinto and Glencore are lower amid pressure on the mining sector.
M&G unveils strategic tie-up, targets $6bn new business
07:21 , Graeme EvansSavings and investment business M&G today unveiled a strategic partnership that will see Japan’s Dai-ichi Life take a 15% stake in the FTSE 100 company.
As asset management partner for Dai-ichi Life in Europe, M&G expects the alliance will deliver $6 billion of new business flows over the next five years.
As well as accelerating its expansion in European private markets, the move opens new potential sources of business flows across Asia.
Dai-ichi Life intends to acquire a shareholding of about 15% in M&G as part of the deal, giving it the right to appoint a director to the board.
M&G chief executive Andrea Rossi said: "The strategic partnership with Dai-ichi Life Holdings and the associated c.15% investment is recognition of M&G's strengths and clear confidence in our leadership, strategy and long-term prospects."
FTSE 100 seen higher, Asia stocks struggle
07:01 , Graeme EvansAsia markets have given up yesterday’s strong gains, reflecting tariffs uncertainty after a US appeals court overturned an earlier ruling that the levies were unlawful.
The Nikkei 225 is down by 1% and the Hang Seng index off 1.4%, while futures trading is pointing to a flat start on Wall Street later today.
The Dow Jones Industrial Average closed last night 0.3% higher, with the S&P 500 and Nasdaq Composite up 0.4% after falling back from much higher territory.
The FTSE 100 index, which was largely unmoved by the tariff developments in trading yesterday, is forecast to open about 0.3% higher at 8752
The pound is at $1.348 while Brent Crude is trading at $63.18 a barrel.
