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FTSE 100: London creeps into the green, Currys soars as takeover battle looks likely

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The UK has hit its lowest point on record on the Index of Economic Freedom - and historian, sociologist and economist Dr Rainer Zitelmann warns significant changes are required

London’s FTSE 100 clambered into the green on Monday, boosted by strong performances from Rolls-Royce and Astrazeneca. Elsewhere, Currys soared on news of a bidding war.

The blue-chip index climbed 0.22 per cent to 7,728.50 at the close while the FTSE 250, which is more aligned with the health of the domestic economy, ticked up 0.13 per cent to trade at 19,216.90.

There was little major corporate or economic news to direct markets on Monday morning, with US markets closed for Presidents Day.

“That changes later in the week when the minutes of the latest Federal Reserve meeting are released and ‘the’ AI stock Nvidia unveils its latest quarterly results,” said Russ Mould, investment director at AJ Bell.

“There is little margin for error for the chip specialist given the supercharged surge in its share price which has continued into 2024.”

The biggest news in London was the bidding war brewing over FTSE 250 electrical retailer Currys.

Over the weekend, Currys rejected an unsolicited £700m bid from activist investor Elliot. It argued that the deal “undervalued” the company, but Elliot said they were still considering a possible deal for the retailer on Monday morning.

The hedge fund may face competition from Chinese retail giant JD, which said it was in “very preliminary” stages of evaluating a cash offer.

Shares in Currys soared more than 36 per cent following the news.

On the FTSE 100, luxury carmaker Rolls-Royce rose to the top of the index ahead of its full-year results on Thursday.

It is eyeing a £1.4bn operating profit, while investors will be looking for news on a dividend payout. Shares rose 3.4 per cent.

Astrazeneca was the index’s second-biggest winner after its Tagrisso drug received positive clinical trial results.

In a statement to the market this morning, the pharmaceutical giant said that results from Phase III trial showed a “statistically significant and highly clinically meaningful improvement” in progression-free survival. Shares rose 3.2 per cent.

British gas owner Centrica was the FTSE 100’s biggest faller, dropping four per cent.

Shares in miner Anglo American fell 1.4 per cent after its platinum mining arm reported a huge profit crash. Anglo American said it plans to cut 3,700 jobs across its mining operations, with a particularly large hit expected to come in South Africa.

“It is apparent that further measures to create critical resilience and greater competitiveness are needed to sustain the business,” chief executive officer Craig Miller said in a statement on Monday.