FTSE Continues To Extend Its Record Break Run Aided By M&A News

Black and Gray Laptop Computer

Image Source: Pexels

On Monday, Britain's FTSE 100 continued its record-breaking rally, driven by increases in Anglo-American following reports of a potential improved buyout offer from BHP Group, and AstraZeneca's advancements in certain treatments. The blue-chip FTSE 100 reached an all-time high of 8,185.69 points, rising 0.4% and marking gains in eight of the last nine sessions. The positive momentum carried over from Wall Street's Friday rally, particularly in mega-cap growth stocks. Anglo-American surged 2.5% after reports of BHP Group considering a better offer following the rejection of its initial $39 billion proposal. AstraZeneca also saw a 1.1% increase after making progress in developing two breast cancer treatments.

On the negative side of the ledger JD Sports Fashion Plc in the UK is leading the FTSE 100 index lower after Barclays downgraded its rating. The company's shares fell by 2.3% to 117.40p, making it the top percentage loser on the index. Barclays analysts reduced their rating on the fashion retailer from 'overweight' to 'equal weight' and also lowered the target price from 165p to 140p. This downgrade comes after JD Sports' proposal to acquire American athletic fashion retailer Hibbett for about $1.08 billion, which Barclays analysts criticised, stating that it would have been better for the company to focus on rebuilding their track record before making such a significant acquisition. Including today's losses, the stock is down approximately 29% year-to-date.

Frasers Group, a UK-based company, experienced an increase in its stock value by approximately 2% to 811.5p following the announcement of a new share buyback program. The company, which specialises in apparel and sportswear retail, has disclosed its plan to initiate the buyback program in collaboration with Jefferies International Ltd. The total value of the buyback is expected to be capped at 80 million pounds ($100.1 million). Despite the recent increase in stock value, the company's stock is still down by approximately 10% year-to-date.

FTSE Bias: Bullish Above Bearish below 8050

  • Below 7900 opens 7800
  • Primary support 7775
  • Primary objective 8120 - TARGET HIT NEW PATTERN EMERGING
  • 5 Day VWAP bullish
  • 20 Day VWAP bullish

(Click on image to enlarge)

More By This Author:

Daily Market Outlook - Friday, April 26
FTSE Prints New Record Highs Boosted By Blue Chip Earnings Beats
Daily Market Outlook - Thursday, April 25
How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.