Latest News

London Markets: FTSE 100 climbs, led by energy and utility companies as power prices rise

Surging oil prices drove the heavily weighted energy sector higher in London on Monday, helping to boost the FTSE 100, while shares of National Grid also rose, amid surging electricity prices.

The FTSE 100

climbed 0.7% to 7,081.92, after last week’s 1.5% decline, the biggest weekly percentage fall since the week ending August 20, 2021. The pound

was flat at $1.3831.

U.S. crude prices

rose around 1% and international benchmark Brent crude

climbed 0.6%. That helped lift shares of BP


and Royal Dutch Shell


by 1% or more each. U.S. natural gas prices

surged 3%, as winds in the North Sea slowed down, hampering wind-driven electricity.

The continent and U.K. have been dealing with natural gas shortages and higher electricity prices for weeks, with problems for wind-energy a fresh headache. Shares of National Grid


rose 2%, while SSE

shares rose 1.5%.

Elsewhere, shares of AB Foods

fell 2.4%, leading the FTSE 100 ‘s decliners after the British multinational food processing and retailing company lifted its full-year adjusted operating profit expectations, as Primark and its AB Food business are expected to exceed management’s previous expectations.

But Primark sales growth eased in the fourth quarter amid measures to keep the delta coronavirus variant under control in the U.K., Spain and elsewhere.

“Even though lockdown measures are now (hopefully) a thing of the past, Associated British Foods-owned Primark still saw volatile trading over the summer because of people being told to self-isolate. There remains a real risk of further disruption if there is an autumn flare-up of Covid as more people interact in society and the Delta variant still rages,” said AJ Bell investment director Russ Mould, in a note to clients.

Elsewhere, at least one London-listed company was getting a lift as retail investors on Reddit comment boards appeared to take fresh interest in the metal that has been seeing a surge in prices over the past week. Shares of U.K.-listed microcap, Berkeley Energia
a clean energy group with uranium mining operations climbed 6%.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News