The FTSE Finish Line - Friday, March 14

By Patrick Munnelly of Tickmill

Friday, March 14, 2025 12:34 PM EDT

Cutout paper illustration representing scheme and Stocks inscription

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British stocks experienced an increase on Friday, propelled by advancements in the defence and mining sectors, following a volatile week characterised by uncertainty regarding U.S. tariffs. The FTSE 100 index increased by more than 1%. The index is projected to decline by 1% for the week, indicating a second consecutive weekly decrease. This trend is attributed to fluctuations resulting from ongoing discussions regarding U.S. tariff policies and disappointing quarterly earnings, which have negatively impacted equity markets. Mining companies for precious and industrial metals experienced increases of 2.7% and 2.6%, respectively, leading sector gains following spot gold prices exceeding the notable $3,000 threshold for the first time.

The ONS reported a 0.1% month-on-month contraction in the UK economy for January, falling short of the anticipated 0.1% growth. December experienced a notable 0.4% month-over-month increase; however, the three-month average of +0.2% provides a more comprehensive view. Comparing this to the Bank of England's projections is complex because of the elevated baseline for Q4, but overall GDP levels are largely in line with expectations despite a divergent trajectory. The OBR's forecast of 0.5% quarterly growth in Q1 seems unlikely. Manufacturing experienced a decline of 1.1% month-over-month, primarily due to reduced vehicle production. Additionally, construction decreased by 0.2% month-over-month, and services showed limited growth, with only six out of fourteen sub-sectors reporting an increase.

Single Stock Stories & Broker Updates:

Shares of Vanquis Banking fell 22.4% making it the biggest loser on the FTSE small cap index. In FY24, VANQ reported an adjusted pretax loss of £34.8 million, compared to a profit of £17.3 million in 2023. FY net interest income was £420 million, down 5% from 2023. Impairment charges rose by 15% to £191 million versus £165.5 million in 2023. Overall, the stock has decreased approximately 65.56% in 2024.
Shares of Life Science REIT rose 8% LABS is conducting a strategic review, considering a sale of its portfolio or entire business, but is not currently in talks with potential buyers. Analysts at Jefferies noted slow leasing activity and occupancy levels. The company has suspended future dividends until the review is complete and is negotiating fee reductions with Ironstone Asset Management. The board expects to announce revised fees soon, and the stock is up ~2.11% YTD.
Shares of Travis Perkins fell 12.6% to a near 16-year lowafter announcing a delay in the publication of its FY 2024 financial results, originally set for March 18, due to the aud
itor needing more time. The board confirmed that 2024 adjusted operating profit aligns with prior guidance. Overall, the stock is down approximately 12.02% in 2024.
Bakkavor shares surged 18.9% to a near 6-1/2-year high, becoming the top gainer on the FTSE 250. The company rejected two proposals from Greencore, with the revised offer valuing it at 1,139 million pounds ($1.47 billion). GNC's second proposal was 85p in cash plus 0.523 Greencore shares per Bakkavor share. The stock is up ~21.92% YTD.
Shares of Tesco and Sainsbury dropped on Friday, attributed to Asda's profit warning. Tesco shares fell 5.6%, and Sainsbury dropped 5.3% to 241.8. Asda plans to offer prices 5%-10% lower than competitors, impacting profitability due to necessary investments in pricing and product availability. Citi analysts caution this could create challenges for Tesco and Sainsbury, as Asda's strategy may force them to defend their market share.