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British stocks initially faced pressure on Wednesday due to a stronger pound, which approached a near one-month high, weighing on the export-heavy FTSE 100 index. However, the FTSE 100 recovered to gain over 0.5%, supported by specific sectors. The healthcare sector rose 1.1%, driven by a 5.5% surge in GSK following better-than-expected fourth-quarter results. Precious metal miners were the top-performing sector, climbing 2.5% as gold prices hit a record high with a 1% jump. Ferrexpo extended losses, falling 8.6%, after a 157 billion hryvnia ($3.77 billion) civil claim was filed against its Ukrainian unit. Conversely, Grainger gained 3.8% after reporting 15% growth in net rental income for the four months through January. Investors remained cautious ahead of Thursday’s Bank of England decision, with markets fully pricing in a 25-basis-point rate cut. In January 2025, the S&P Global UK Composite PMI climbed to 50.6, up from 50.4 the previous month, marking a recovery from a 14-month low. The services sector PMI for January was 50.8, down from 51.1 in December, while the manufacturing PMI improved to 48.3 compared to 47.0.
Single Stock Stories:
GSK shares increased by 4.5% to 1,442p, making it the leading percentage gainer on the FTSE 100 index. The British pharmaceutical company has raised its sales target for 2031 to over 40 billion pounds, up from the previously anticipated 38 billion pounds. It exceeded Q4 earnings expectations with a core EPS of 23.2p compared to IBES estimates of 19.01p, driven by strong performance in its HIV and oncology segments. The company reported Q4 sales of 8.12 billion pounds ($10.15 billion), surpassing IBES forecasts of 7.75 billion pounds. GSK also announced a share buyback program worth 2 billion pounds and set a sales growth target of 3%-5% for 2025, aligning with analysts’ expectations for approximately 3.5% growth, based on a company-prepared consensus. However, GSK’s stock has dropped around 12% over the past year.
Grainger Plc’s shares increased by as much as 3.3% to 216p, making it one of the top percentage gainers on the FTSE 250 index. The UK’s largest publicly listed provider of private rental properties reported a 15% rise in total net rental income for the four-month period ending in January. The company anticipates a 50% growth in earnings in the medium term thanks to its build-to-rent investment initiatives. GRI has noted that a favourable regulatory environment and continued governmental backing for the build-to-rent sector have bolstered its positive outlook. However, the stock experienced a decline of approximately 15% in 2024.
Shares of Grainger Plc increased by as much as 3.3% to 216p, positioning it among the top percentage gainers on the FTSE 250 index. The UK’s largest publicly traded provider of private rental homes reported a 15% surge in total net rental income for the four-month period ending in January. The company anticipates a 50% growth in earnings in the medium term, driven by the execution of its build-to-rent investment strategy. GRI noted that a favourable regulatory environment and the UK government’s steady support for the build-to-rent sector have bolstered its prospects. The stock dropped approximately 15% in 2024.
Broker Updates:
Shares of Future Plc rose by as much as 4.7% to 979.5p, making it one of the top percentage gainers on the FTSE 250. The UK-based publishing company reported continued improvement in its business-to-consumer segment, particularly in U.S. digital advertising and e-commerce, while noting resilience in its magazines division. Future Plc stated it remains on track to meet market expectations for FY25. Peel Hunt analysts highlighted the positive trends in U.S. digital advertising, e-commerce, and audience stabilisation as promising signs. They also noted that the recent appointment of Kevin Li Ying as the new CEO adds certainty to the business. The stock has already gained 17% in 2024.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8400
Primary support 8400
Below 8400 opens 8225
Primary objective 8600
Daily VWAP Bullish
Weekly VWAP Bullish
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