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The primary stock indexes in the UK advanced slightly on Monday following strong gains in November; gains were capped by declines in homebuilders and precious metal mining companies. House prices in the UK increased in November at the quickest yearly rate since November 2022, as per information from mortgage provider Nationwide, highlighting the strength of the property market despite elevated borrowing expenses. The S&P Global Purchasing Managers' Index for UK manufacturing dropped to 48.0 in November, falling short of the initial estimate of 48.6, which signals a continued decline in factory activity in Britain. Investors are now looking forward to BoE Governor Andrew Bailey on Wednesday for additional insights into the central bank's monetary policy direction.

Single Stock Stories:

• Shares of Spirent Communications rise 5.1% to 178.6p, making it the top gainer on the FTSE midcap index. The company has agreed to a 1.6-bln-pound buyout offer from Keysight Technologies, which has received approval from French and German authorities. Keysight plans to divest Spirent’s high-speed ethernet and network security businesses, with the deal expected to close in the first half of its fiscal year ending April 30, 2025. SPT has risen ~44% YTD.

• Shares of Condor Gold PLC rose 26% after receiving two non-binding takeover proposals from Calibre Mining Corp and Metals Exploration PLC. CNDR notes no certainty of a firm offer or its terms. MTL is in advanced discussions with Condor's board, while Calibre does not intend to make an offer. As of the last close, Condor stock is down ~5.88%, Calibre Mining up ~83.82%, and Metals Exploration up ~116.15% YTD.

Broker Updates:

• UK homebuilders Persimmon and Vistry saw their shares decline after a brokerage downgraded their ratings. Persimmon fell by 2.3%, while Vistry dropped 2.5%, making them the biggest percentage losers on the FTSE 100 index. Persimmon's stock has reached its lowest point since November 2023. RBC has lowered both companies' ratings to "underperform" from "perform," citing concerns from Persimmon's Q3 remarks regarding construction costs and changes in building regulations that could impact fiscal year margins. Vistry has issued two profit warnings in the past two months, and with provisions and cost assessments still unaudited, there are potential risks ahead. The brokerage has also reduced its target price for Persimmon to 1,275p from 1,475p, and for Vistry to 500p from 825p. Additionally, Morgan Stanley has cut Persimmon's target price to 1,600p from 1,721p. In other news, UK house prices in November experienced their fastest annual increase in over two years. So far this year, Persimmon's shares are down approximately 12%, while Vistry's have decreased around 30%.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8225

• Primary support 8000
• Below 8000 opens 7855
• Primary objective 8600
• Daily VWAP Bullish
• Weekly VWAP Bullish

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