London’s FTSE 100 edged higher on Friday, supported by strong gains in Vodafone and easyJet following major corporate developments.
However, renewed tensions in the Middle East continued to weigh on investor sentiment, limiting broader market gains.
The blue-chip FTSE 100 index rose 0.08% to 10,480.31 points by 1053 GMT.
Meanwhile, the mid-cap FTSE 250 gained 0.1%.
Despite the modest advances, both indexes remained on track to record weekly losses.
Vodafone jumps after a major stake sale agreement
Vodafone emerged as the top performer on the FTSE 100, with its shares rising 12.6%.
The gains came after UAE telecommunications group e& announced that it would sell its stake in the British telecom company to the family investment vehicle of French billionaire Xavier Niel.
The transaction was valued at nearly $6 billion.
The announcement boosted investor confidence and helped lift the broader benchmark index despite cautious market sentiment.
easyJet leads FTSE 250 higher on takeover approach
Shares of easyJet climbed 14.5%, making it the strongest performer on the FTSE 250.
The budget airline said it had agreed in principle to a £5.7 billion ($7.65 billion) takeover approach from Apollo Global.
The proposed deal lifted sentiment across the travel and leisure sector, which rose 1.6% and led sectoral gains during the session.
The takeover news added to the day’s corporate activity, providing support for UK equities even as geopolitical concerns remained in focus.
Mining stocks advance alongside the broader market
Industrial metal miners also posted gains during the session.
The sector rose 0.8%, with Atalaya Mining, Antofagasta, and Rio Tinto advancing between 1.4% and 1.8%.
The gains in mining stocks further contributed to the positive performance of the UK’s main equity indexes.
Middle East tensions cap broader market gains
Despite the rally in several major stocks, investor sentiment remained cautious.
Renewed tensions in the Middle East weighed on markets after Iranian forces attacked US military infrastructure in Gulf states.
The development further undermined a three-week-old ceasefire and increased uncertainty surrounding the direction of the conflict.
The geopolitical uncertainty prevented stronger gains across the broader market, keeping investors cautious despite positive corporate news.
Financial stocks under pressure
Investment banks and brokerages declined 0.8%, making them among the weakest-performing sectors during the session.
St. James’s Place was one of the biggest fallers on the FTSE 100, dropping 8.7%.
The decline followed a report that Sovereign Wealth, one of the money manager’s largest partner firms, was in discussions to join a Swedish wealth management group.
Hays rises after upbeat profit outlook
Recruitment company Hays gained 13.8% after issuing a positive earnings outlook.
The company said it expects its annual operating profit to come in at the top end of market expectations.
According to the company, the improved outlook was supported by ongoing cost-cutting measures and higher consultant productivity.
The update was well received by investors and helped lift the stock sharply during Friday’s trading session.
Political developments remain in focus
On the political front, Andy Burnham moved closer to becoming Britain’s next prime minister after securing overwhelming backing from Labour lawmakers.
The support places Burnham in a strong position to succeed Keir Starmer, adding a political dimension to a session otherwise dominated by corporate deal activity and geopolitical developments.
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