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The blue-chip FTSE 100 was impacted by AstraZeneca and GSK’s falls, while data revealed that Britain’s GDP shrank more than predicted in September. As a result, the major UK stock indices were quiet on Friday. Following U.S. President-elect Donald Trump’s announcement that he had appointed Robert F. Kennedy Jr., who has disseminated false information about vaccines in the past, to head the Department of Health and Human Services, shares of pharmaceutical companies AstraZeneca and GSK fell 2.4% and 3.2%, respectively, mirroring declines in U.S. and European vaccine manufacturers. However, a recovery in mining companies from early in the week’s losses helped the FTSE 100 gain 0.3% heading into the close. Finance Minister Rachel Reeves’ hopes of igniting a durable recovery were thwarted when the British economy unexpectedly shrank in September and growth slowed to a crawl throughout the third quarter. In September, GDP decreased by 0.1% on a monthly basis, although analysts had predicted a 0.2% increase.The chilling effect of a budget buildup full of warnings about difficult decisions was demonstrated by the most recent UK GDP numbers. Chancellor Reeves promised Thursday to restructure the rules controlling Britain’s “crown jewel” financial sector, which she said has impeded economic expansion.Single Stock Stories:
Shares of GSK fell 4% to 1,299p, while AstraZeneca dropped 2.5% to 10,038p. GSK shares hit their lowest level since October 2022, and both GSK and AZN were among the top losers on the FTSE 100 index, which declined 0.3%. U.S. President-elect Donald Trump selected Robert F. Kennedy Jr. to lead the Department of Health and Human Services, despite Kennedy’s opposition to COVID-19 restrictions and accusations of spreading misinformation. Shares of U.S. vaccine makers Pfizer and Moderna fell in aftermarket trading following Kennedy’s appointment, and U.S.-listed GSK shares were also down about 2%. GSK and AZN shares have declined by 10% and 5%, respectively, so far this year.
Shares of British commercial property firm LandSecurities Group rise 1.7% to 590p, leading the FTSE 100 index. The company expects fiscal year 2024 EPRA earnings per share to be in line with the 50.1p reported for the previous year, above the company-compiled consensus of 49.3p. The company’s EPRA Net Tangible Assets increased 1.4% to 871p per share as of September 30, above company-compiled analysts’ estimates. CEO Mark Allan stated that “property values have stabilised, with growth in rental values driving a modest increase in capital values, resulting in a positive total return on equity.” The stock is down 17.7% year-to-date as of the last close.
Shares of TT Electronics surge nearly 38% to 109p, reaching a two-month high, as the company rejected two takeover proposals from Volex Plc, a maker of power products and data cables. Volex’s latest cash-and-stock proposal valued TT Electronics at 248.6 million pounds, a premium of 76.7% to TT Electronics’ last close of 79.0p. Volex’s stock dropped 9% to 312.5p, the lowest since May 1, 2024. As of last close, TT Electronics is down around 49.42% year-to-date, while Volex is down approximately 2.04% year-to-date.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8225
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