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UK shares were mixed on Wednesday, reversing gains from the previous session, as investors questioned whether the optimism over extensive stimulus measures in China was excessive. The blue-chip FTSE 100 was rotating around the flatline into the close. It rose 0.3% in the previous session, amid a global rally after China released their biggest set of stimulus measures since the COVID-19 pandemic. However, the optimism faded as market observers questioned whether the scope of proposed measures was extensive enough to address deep-rooted issues in China and spark a sustained resurgence in consumer and industrial demand. Even China's central bank reducing its medium-term loan rate on Wednesday did little to lift sentiment again.

In single stock stories, Rightmove, the UK's largest real estate portal, has rejected a sweetened $8.1 billion takeover bid from Australian property listing firm REA Group, stating that the increased offer was still "unattractive". Rightmove's shares have fallen by as much as 1.8% to 670.40p, making it one of the top percentage losers on the FTSE 100 index. Analysts see a "low likelihood" of the deal going through, citing valuation concerns against the backdrop of Rightmove's high growth potential and the complex structure of the proposal. REA has until September 30 to make a formal offer for Rightmove or walk away.

Rentokil Initial, a British pest-control company, sees its shares rise 2.9% to 371.2p as Trian Fund Management, led by activist investor Nelson Peltz, appoints a nominee to the company's board. Trian holds around a 2.6% stake in Rentokil. Brian Baldwin, Trian's head of research, will join the board and serve on the nomination and remuneration committees. The stock is down approximately 16% so far this year.

Directa Plus, a UK-based supplier of graphene-based products, has reported that its full-year revenue forecast is expected to be around 7 million euros, significantly lower than the market's expectation of around 17 million euros. The company's share price has fallen by 34.4% to 10.5p, and the stock has declined by approximately 55% year-to-date. The company's half-year revenue decreased to 3.4 million euros from 4.6 million euros last year due to delayed commencement of some large contracts, and its loss before tax widened to 2.48 million euros from 1.91 million euros last year.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8225

• Primary support 8100
• Primary objective 8600
• Daily VWAP Bearish
• Weekly VWAP Bearish

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