FTSE 100 Closes Up 0.9%, Lifted by BP

The FTSE 100 index closed up 0.9% at 7,681 points, outperforming peers driven by heavyweight oil giant BP's better-than-expected 4Q earnings and the launch of a large share buyback. Shares of the energy major led the bluechip index, up 5.5%, followed by Weir Group and Prudential, up 4.15% and 3.8%, respectively. Among the worst performers, Pearson shares fell 3% and the telecommunications group BT shares closed down 2.5%.

COMPANIES NEWS:

BP Profit Beat Expectations

BP posted higher-than-expected annual profit, joining other oil-and-gas giants in showing resilience despite volatile energy prices, although results still dropped from the prior-year's record highs.

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React Group Swings to Profit After Benefits from Acquisitions Flow Through

React Group said it swung to a pretax profit after revenue rose on acquisition contributions and strategic business decisions.

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Novacyt's Sale of Taiwan Laboratory Cancelled by Buyer

Novacyt said the sale of its Taiwan laboratory to INEX Innovate has been cancelled, and it will remain part of the group.

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Renishaw's Pretax Profit Fell on Lower Demand

Renishaw reported a lower pretax profit for the half year due to lower demand from semiconductor equipment manufacturers amid a challenging environment, but it remains confident in its organic growth model aiming for high single digit organic growth rates.

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Filtronic Swung to Pretax Loss on Higher Costs; Sees Growth Over Next Two Years

Filtronic said it swung to a pretax loss for the first half of its fiscal year after booking higher costs, and that it expects revenue and profit to be ahead of market expectations for fiscal years 2024 and 2025.

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Virgin Money UK Backs Guidance Citing Momentum at Start of the Year

Virgin Money UK posted a stable net interest margin for its first quarter and said that its deposits rose as it flagged good momentum for the start of fiscal 2024.

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Aston Martin Seeks Candidates to Replace CEO, Bloomberg Reports

-- Aston Martin Lagonda Global Holdings is looking for candidates to succeed Amedeo Felisa as chief executive officer and become its fourth CEO in as many years, Bloomberg reports.

MARKET TALK:

Virgin Money Looks Cheap, But May Need to Invest More

1413 GMT - Virgin Money shares rise 2% to 152 pence after the U.K. banking group reported what it described as strong 1Q results in line with its guidance. The company's trading update ticked the box in terms of consistency with FY23 results and guidance, Jefferies says, reiterating its buy rating and 199p price target. Meanwhile, RBC Capital Markets also reiterates its sector-perform recommendation and 200p target. "We struggle to understand what makes VMUK an attractive investment other than the bank looks cheap, in our view, and it feels like a lot of investment is still required to compete with large U.K. peers," RBC analyst Benjamin Toms writes. ([e-mail])

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European Oil Shares Gain on BP 4Q, Middle East Jitters

1318 GMT - Oil shares rise after upbeat annual results from BP and as crude prices rise amid ongoing Middle East tensions. BP shares gain 6% and other European majors such as TotalEnergies, Shell, Eni and Equinor advance after BP reported better-than-expected fourth-quarter profit and a $1.75 billion share buyback. Brent crude also increases 0.9% to $78.68 a barrel as traders weighed rising geopolitical risks. "Further attacks on Iranian-backed groups by the U.S. and allies over the weekend have raised tensions, alongside Israeli military movements on the Golan Heights sparking concerns of a second front opening up for Israel against Hezbollah," Panmure Gordon analyst Ashley Kelty writes, adding that ceasefire hopes appear to be receding. ([e-mail])

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U.K. Asia-Focused Stocks Rise After China Share-Stimulus Bid

1308 GMT - Asia-focused shares in London gain after Chinese stocks rallied in response to a China state-backed initiative to boost interest in its stock market. Prudential is among the biggest risers on the FTSE 100, up 3%, while HSBC and Standard Chartered also make significant gains after mainland Chinese shares rose 5% and Hong Kong's Hang Seng surged 4%. "A state-owned investment fund indicated it would continue to buy up shares in what looks like a concerted effort to breathe some new life back into Chinese equities after they fell out of favor," AJ Bell investment director Russ Mould writes. "The securities regulator also pledged to encourage more long-term funds to buy shares and to encourage companies to buy back more of their own shares." ([e-mail])

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U.K.'s January Sales Indicate Shifting Consumer Behavior

1203 GMT - U.K.'s January retail sales slowdown reported by BRC shows that while inflation considerably fell from 2022 high, consumers are still carefully considering their budgets before making purchases, AJ Bell head of financial analysis Danni Hewson says in a note. This also reflects a mindset shift as consumers prioritize experiences over products, Hewson adds. "The phrase 'life is for living' has taken on new meaning and trends like 'loud budgeting' are being celebrated on social media," Hewson highlights. Looking ahead, February could bring a positive perspective given that pay packets will have been a bit bigger, giving green light to purchases that have been held back, she notes. "But until interest rates start to fall and mortgages and rental costs are heading one way, retail is likely to keep losing out." ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

02-06-24 1213ET