London’s stock markets delivered a mixed performance on Monday, while defence stocks were bolstered following a major announcement from Prime Minister Keir Starmer.
Trading volumes remained subdued with American exchanges shut for a bank holiday in the US. The Ftse 100 edged higher by 27.34 points, gaining 0.3 per cent to finish at 10,473.69, supported by strength in banking and defence shares.
Mid-cap stocks fared less well, with the FTSE 250 shedding 51.80 points to close 0.2 per cent lower at 23,375.47. The AIM all-share index also dipped marginally, falling 0.44 points or 0.1 per cent to 811.41.
Paris’s CAC 40 rose 0.2 per cent, while Frankfurt’s DAX 40 retreated 0.5 per cent. Canadian markets were also closed on Monday for Family Day, further contributing to the quieter trading conditions.
The Ftse continues to be in the green
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NatWest emerged as the top performer on the blue-chip index, surging 4.8 per cent after commencing its previously announced £750million share buyback scheme. The banking group plans to complete the programme by January 15 next year.
Monday’s rally also represented a recovery for NatWest, which had dropped 4.1 per cent on Friday following the publication of its annual financial results. The lender’s shares climbed 27.60p to reach 607.80p, making it the biggest riser among Ftse100 constituents.
Other notable gainers on the leading index included Melrose Industries, which added 25.00p to close at 667.00p, and Babcock International, rising 47.00p to 1,346.00p.
BAE Systems also advanced, finishing 61.00p higher at 2,029.00p. Defence contractors enjoyed a strong session following remarks from Prime Minister Keir Starmer urging Britain to accelerate its military spending commitments.
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GETTYSpeaking at an event in London, Mr Starmer highlighted the ongoing Russian threat, noting the approaching fourth anniversary of the Ukraine conflict. The Prime Minister explained: “That means on defence spending, we need to go faster.”
Mr Starmer has already pledged to raise defence expenditure to 2.5 per cent of gross domestic product (GDP) next year, with a target of three per cent following the subsequent general election.
It is understood the Labour Government may now be considering bringing forward the three per cent commitment to 2029, the BBC reports. Melrose Industries responded with a 3.9 per cent gain, while Babcock International rose 3.5 per cent and BAE Systems climbed three per cent.
Pinewood Technologies suffered the heaviest losses on the Ftse 250, with shares collapsing 33 per cent after Apax Partners abandoned its pursuit of the company. The London-based private equity firm confirmed on Friday it would not proceed with a formal bid, citing “prevailing challenging market conditions”.
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Late last month, Pinewood had disclosed discussions with Apax over a potential cash offer of 500 pence per share, following several earlier approaches.
AJ Bell analyst Dan Coatsworth observed that the stock had fallen beyond simply reversing its earlier takeover-related gains.
“Investors are now worrying why a big-name bidder has suddenly walked away, and whether Pinewood is going to be lumped with the multitude of other stocks that have struggled this year due to AI disruption-related fears,” he noted.
Pinewood maintained it “remains very confident in the positive long-term prospects for the group”.
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