London’s FTSE 100 index has surged to record intraday highs over two consecutive sessions, buoyed by a string of better-than-expected corporate results.
The blue-chip index reached a high of 10,979.24 on Thursday, pushing past its previous closing peak set in late February.
The index lost momentum during afternoon trading, however, closing the session at 10,897.27, down 11.14 points from Wednesday’s close.
That still leaves the index close to its previous closing record of 10,910.55, which was set on February 27.
The FTSE 100 had been knocked sharply lower when the US and Israel launched strikes against Iran on February 28, sending oil and energy markets into turmoil.
Since then, the index has been steadily recovering, with higher oil prices lifting heavyweights including BP (BP.L) and Shell (SHEL.L), while defence stocks have benefited from increased global spending pledges.
Engine maker Rolls-Royce provided a significant boost on Thursday after delivering an earnings guidance upgrade, sending its shares up 6% on the day.
Fellow defence giant BAE Systems also raised its full-year outlook, which pushed its stock up 2% and added further momentum to the broader index.
Shell delivered better-than-forecast second quarter results, though it was unable to hold on to early session gains as trading progressed.
Kathleen Brooks, research director at XTB, noted that “in contrast to the turmoil in tech-heavy spaces, the FTSE 100 has surged to a record high, and is higher by 4.5% in the past month.”
Brooks added that “its mix of energy stocks, defence names and consumer staples are attractive in the current environment,” highlighting the index’s relative resilience.
She also pointed out that indicators suggest there could be “further upside for the UK index as investors rotate away from global tech names.”
European indices also posted gains on Thursday, and Wall Street moved higher in early trading despite ongoing volatility in the technology sector.
Concerns over an AI bubble bursting have weighed heavily on Wall Street’s technology stocks in recent months, creating a sharp divergence with London’s more defensively positioned index.
Not all companies fared well, however, with pest control group Rentokil Initial seeing its market value plunge by more than a fifth after warning of weaker residential demand in North America, its biggest market.
Rentokil kept its full-year outlook unchanged, but shares still tumbled 21% as investors reacted sharply to the softer trading update.