London Market Update: Blue Chip Stocks Stay Flat During M&A Activity, Lacking US Momentum
London’s FTSE 100 had a bit of a mixed bag on Thursday, staying relatively flat, but a jolt of merger and acquisition (M&A) activity livened things up on an otherwise quiet day due to a holiday in the US.
Exciting news of bids for Direct Line, Renewi, and Loungers gave these companies a real boost. Reports also indicated that the takeover of the Royal Mail owner is gaining momentum.
Here’s how the main indices fared: the FTSE 100 gained 0.1% to 8,281.22 points, the FTSE 250 rose 0.7% to 20,748.44, and the AIM All-Share dipped 0.1% to 730.91.
While the Cboe UK 100 was slightly lower at 831.61, the Cboe UK 250 saw a 0.9% increase to 18,248.71, and the Cboe Small Companies gained 0.6% to 15,789.72.
Financial markets in New York were closed for Thanksgiving, but over in Europe, the CAC 40 in Paris ended 0.5% higher and the DAX 40 in Frankfurt saw a rise of 0.8%.
There was some interesting news out of France where a major concession by Prime Minister Michel Barnier aimed to resolve a standoff over the budget. This move was prompted by concerns in the financial markets and the risk of his minority government collapsing.
On the economic front, consumer confidence in the eurozone saw a slight improvement in November according to data from the European Commission. This is good news and may indicate some stabilization in industrial activity.
In currency markets, the pound was trading at USD1.2677, down from USD1.2687, and the euro stood at USD1.0549, down from USD1.0579. Against the yen, the dollar was at JPY151.50, up from JPY150.71.
The London Stock Exchange saw some exciting takeover action, especially with Direct Line. Their shares surged by 41% after Aviva made an unsuccessful bid for the company. Renewi also saw action with a new takeover proposal valued at over GBP700 million.
Overall, it was a day of mixed fortunes for the UK stock market, with a bit of drama in the M&A space keeping things interesting.
