London stocks closed higher on Tuesday‘s shortened trading day, buoyed by gains in the retail and mining sectors, while Windward surged 42% following a takeover bid from FTV VIII LP.
The FTSE 100 index closed up 34.27 points, 0.4%, at 8,136.99. The FTSE 250 ended up 152.42 points, 0.8%, at 20,571.51, and the AIM All-Share closed up 4.96 points, 0.7%, at 717.40.
The Cboe UK 100 ended up 0.5% at 816.29, the Cboe UK 250 closed up 0.8% at 18,016.59, but the Cboe Small Companies ended down 0.5% at 15,787.64.
Retailers were in favour as the belated ’Santa Rally’ took hold.
Hopes for a buoyant Christmas sales pushed Next up 1.0%, JD Sports up 0.9% and Marks & Spencer up 0.8%.
Airtel Africa rose 2.7%, continuing to draw strength from Monday’s share buyback announcement.
British Airways owner IAG, which looks set to end 2024 as the FTSE 100’s top performer, ended flat.
The Financial Times said airlines on both sides of the Atlantic are set for their busiest Christmas season as tens of millions of passengers take to the skies.
In the UK, carriers will fly 6.1 million seats between December 20 and January 2, a 5% increase on the previous record set in 2019, the FT said, citing aviation data company Cirium.
Shares in IAG have enjoyed a stellar year, up 94% in the year-to-date, leaving it neck-and-neck with Rolls Royce, the top performing blue-chip in 2023, which has risen 93%.
On the downside, builders were knocked by another profit warning from Vistry.
Shares in Kent-based Vistry plunged 16% after it warned of delays to expected year-end transactions and completions, which are now expected in 2025.
The builder, recently relegated to the FTSE 250, expects 2024 adjusted pretax profit to be around £250 million, down from previous guidance of around £300 million. The company reported adjusted pretax profit of £419.1 million in 2023, so this year’s result will be down 40%.
It cut its profit expectations to £350 million from £430 million in early October, before a further cut to £300 million in November.
Anthony Codling at RBC Capital Markets said: ‘On a day when most are winding down or driving home for Christmas, Vistry delivered a present with a sting in its tail, another profit warning, the third and hopefully final one for this year.’
‘A combination of internal and external factors led to a challenging fourth quarter, and we expect Vistry will be looking forward to seeing the back of 2024, taking some time out and starting afresh in 2025.’
Peel Hunt said 2024 has turned into something of an ‘annus horribilis’ for Vistry.
Analysts at Davy Research downgraded the stock to ’neutral’.
‘With further cracks appearing in the investment thesis as the UK market continues to struggle, we downgrade the stock to neutral, despite there still being some upside to our price target (773 pence). In the short term, earnings volatility is likely to remain high, and we will wait for some stability and clarity in future earnings and strategy before returning to the investment case.’
A report in the FT said UK listed housebuilders are on track to build the fewest new homes for sale in a decade, as planning rules and high mortgage rates hold the market back despite the new Labour government’s push to increase housing supply.
The sector, excluding Vistry which focuses on affordable and rental housing, is forecast to complete just over 50,000 homes this year, the lowest level of output since 2013, according to a FT analysis of figures for seven companies compiled by Investec.
Persimmon fell 2.4%, Barratt Redrow was up 0.4% and Taylor Wimpey declined by 1.5%.
Asia-focused Standard Chartered gained 1.3% on hopes for further stimulus measures in China.
China will raise its deficit in order to boost spending next year, its finance minister said according to state media, as Beijing looks to prop up its struggling economy.
The world’s second-largest economy has for years battled sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt.
Beijing unveiled a slew of aggressive measures this year aimed at bolstering growth – cutting interest rates, cancelling restrictions on homebuying and easing the debt burden on local governments.
Economists have urged more direct fiscal stimulus to shore up domestic consumption and restore China’s economy to full health.
Miners also benefited from the news, with Anglo American up 2.1% and Glencore up 0.4%.
Forex markets were quiet, with currencies trading in tight ranges.
The pound was quoted higher at $1.2555 on Tuesday in London, compared to $1.2525 at the equities close on Monday. The euro stood at $1.0403, up slightly from $1.0399.
Against the yen, the dollar was trading lower at JP¥157.10 compared to JP¥157.12 on Monday.
In European equities on Tuesday, the CAC 40 in Paris was up 0.3% while the DAX 40 in Frankfurt was 0.2% lower.
In New York, stocks were called mostly higher. The DJIA was seen flat, the S&P 500 index was expected to open 0.1% higher, and the Nasdaq Composite by 0.2%.
Amerian Airlines was 3.5% lower in pre-market trading after the US Federal Aviation Administration said the carrier has grounded all flights nationwide.
American Airlines said in a statement: ‘Our teams are working to resolve the issue as quickly as possible, and we apologise to our customers for the inconvenience.’
Back in London, Windward jumped 42%.
The Tel Aviv, Israel-based maritime predictive intelligence company has accepted a takeover offer worth £216 million from the fund group FTV VIII LP.
Windward Chief Executive Ami Daniel said this marks an ‘exciting next step’ in the firm’s evolution.
Elsewhere, Kooth jumped 11% after announcing plans to start a new share buyback.
The London-based provider of digital youth mental health care said it believes its shares are ‘significantly’ undervalued as it unveiled plans for a buy back worth up to £1.5 million.
Kooth also announced the pilot contract with the US state of New Jersey, worth $1.5 million, which has an initial one-year term with services expected to start in mid-January.
Brent oil was quoted at $73.03 a barrel at the London equities close Tuesday, up from $72.09 late Monday.
Gold was quoted at $2,614.31 an ounce at the London equities close Tuesday, higher than $2,611.83 at the close on Monday.
Financial markets are closed in London on Christmas Day and Boxing Day.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
