(Reuters) – London’s benchmark index hovered near record highs on Wednesday, buoyed by gains in real estate stocks, while investors geared up for data from the region later in the week.
The blue-chip FTSE 100 held its ground at 8,779.94 points, after rising to a record earlier in the session. The midcap FTSE 250 advanced 0.5% by 1108 GMT.
The real estate sector gained 1.2%, while the home construction sector rose 1.7%.
Prudential rose 4.6% after the British insurer said it was evaluating the potential listing of India’s ICICI Prudential Asset Management Company, involving a partial divestment of its shares.
Shares of Barratt Redrow rose 5% to their highest since July 2023 after the British homebuilder issued an upbeat annual profit forecast and announced a share buyback.
A scenario with lower interest rates boosts demand for new homes by reducing borrowing costs.
On the flip side, the oil and gas sector was the biggest drag on the index, losing 0.8% as oil prices fell 1%. [O/R]
Precious metals and mining sector lost nearly 1% as gold prices retreated from an all-time high hit in the previous session. [GOL/]
Industrial metal miners dipped 0.6% as aluminium prices lost ground. [MET/L]
Among other stocks, London-listed shares of Georgia’s TBC Bank jumped 10.5%, after the bank hiked its dividend payout.
Investors await UK’s GDP estimates for December, the preliminary figures for the fourth quarter, and the industrial and manufacturing output for December, all of which will shed light on Britain’s economic landscape.
Markets also await a speech by Bank of England policymaker, Megan Greene, at 1500 GMT.
Across the pond, markets are gearing up for the January U.S. consumer price data to gain insights into the U.S. Federal Reserve’s monetary policy outlook. This will be followed by Fed Chair Jerome Powell’s second day of testimony before Congress.
(Reporting by Sanchayaita Roy and Pranav Kashyap in Bangalore; Editing by Mrigank Dhaniwala)
