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UK stocks dropped on Friday, with the FTSE 100 falling 0.13% and set for a 2% weekly loss, its worst since December, while the midcap index faced a third consecutive weekly decline. Investor sentiment remained weak despite U.S. President Trump suspending tariffs on Canada and Mexico. Burberry plunged 6.3%, dragging the personal goods sector down 5.1% amid concerns over European luxury markets. A bond selloff tied to Germany's spending plans eased, but UK 10-year bond yields stayed at a monthly high. Oil and gas gained 0.3% as crude prices rose, while Just Group tumbled 14.6% on disappointing results, and Schroders fell 5% after announcing cost-cutting plans. The aerospace and defense sector, though down 0.4% on the day, was set for a 9% weekly gain on expected European defense spending. UK house prices unexpectedly dipped 0.1% in February, per Halifax data.

Single Stock Stories & Broker Updates:

• Whitbread, owner of Premier Inn, drops 3% to 2,456p, the lowest since Nov 2022, after J.P. Morgan downgrades from "overweight" to "neutral" due to weak consumer spending among lower-income households in the UK. The price target has been reduced from 4,400p to 3,000p. Stock is rated "buy" on average with a median price target of 3,600p. WTB down ~15% YTD.
• Eurocell shares rise 2.04% to 150p following the acquisition of Alunet for £29m. The deal is expected to enhance 2025 earnings. In FY24, Eurocell reported revenues of £43m and EBITDA of £4.5m, with a 30.53% stock increase in 2024.
• British energy firm Hunting's shares rose 2.1% to 292.5p after acquiring Organic Oil Recovery technology for $17.5 million. The acquisition is expected to enhance margins and support the company's 2030 strategy. HTG will pay a 15% royalty on revenue for 15 years. However, Hunting stock is down about 2.2% in 2024.
• Avacta's shares rose 10% to 39.94p; the company plans to sell its pathology solutions unit, Launch Diagnostics, for £12.9 million ($16 million) to become a pure-play biotech firm. The unit will be bought by Duomed Belgium NV, a subsidiary of Palex Healthcare. Post-divestment, cash runway is expected to extend into Q1 2026. The stock is down 25.84% year-to-date as of Thursday's close.
• Shares of Just Group fell 16.7% to 135.8p, making it one of the top losers in London. The British financial services group reported a 34% decline in FY24 IFRS pre-tax profit at 113 million pounds, below expectations. Jefferies analysts stated FY24 tangible net asset value was 2.7% lower than expected. The stock is on track for its worst day since July 2016 and is down 14% YTD.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8950

• Primary support 8700
• Below 8700 opens 8600
• Primary objective 9050
• Daily VWAP Bearish
• Weekly VWAP Bullish

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