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Britain's main index saw a slight increase on Monday, buoyed by stocks in the aerospace and defence sectors due to heightened U.S. pressure on Europe to increase its defence budgets. This came as Assura reached its highest value in over a year after turning down a $2 billion acquisition offer. The FTSE 100 gained 0.2% at 1037 GMT, recovering from a 0.4% dip on Friday, while the FTSE 250 saw a similar rise of 0.2%. In addition, shares of banks like NatWest and Barclays rose by more than 3%. In an interview, Bank of England Governor Andrew Bailey indicated that inflation is decelerating, and an anticipated rise in price growth later this year is not expected to result in sustained inflationary pressures within the economy. The central bank lowered its benchmark interest rate from 4.75% to 4.5% on February 6, while signalling a cautious and gradual approach to any future adjustments in borrowing rates. On another note, the recent surge in asking prices for newly-listed homes in Britain has lost momentum ahead of an increase in property purchase taxes. Investors are also preparing for key data releases this week, including inflation and retail sales figures for January. Among specific stocks, Assura saw a 15.3% increase after the healthcare property developer dismissed a £1.56 billion ($2 billion) proposal from KKR and the Universities Superannuation Scheme. Conversely, shares of John Wood Group dropped 17.2% to a new record low, following a 55% decline from the previous session due to a forecast of negative cash flow for the coming year..

Single Stock Stories & Broker Updates:

• Shares of Assura, a UK-based healthcare real estate investment trust, surged 17.3% to 45.76p after the company rejected a £1.56 billion ($1.96 billion) takeover bid from KKR and the Universities Superannuation Scheme. KKR is currently assessing its options and contemplating whether to re-engage with Assura’s board. Meanwhile, the Universities Superannuation Scheme has stated that it does not intend to make an offer for Assura, either alone or as part of the consortium. Over the past year, the stock has risen approximately 8.8%.

• Defence firm BAE Systems surged by 6.6%, leading the FTSE 100 as defence stocks across Europe rallied. The UK's aerospace and defence index experienced the largest sectoral increase, climbing by 3.4%. On Monday, French President Emmanuel Macron is set to host European leaders, including Britain's Prime Minister Keir Starmer, for an urgent meeting regarding the Ukraine conflict. Starmer expressed his willingness to deploy peacekeeping troops in Ukraine ahead of the Paris discussions focused on achieving a ceasefire.

• Petra Diamonds, a UK diamond mining company, experienced a significant drop in its shares by 13.8%, reaching 25 pence, making it the largest percentage loser on the FTSE smallcap index, which saw a slight increase of 0.07%. The company has appointed Vivek Gadodia and Juan Kemp as joint CEOs amid a deepening of losses for the first half following Richard Duffy's resignation. Petra Diamonds reported a loss of $69 million in the six months ending December 2024, up from an $11 million loss the previous year. Under Duffy's leadership, the company's stock plummeted by approximately 97%. Additionally, the stock has fallen by 55.7% in 2024.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8400

• Primary support 8400
• Below 8400 opens 8225
• Primary objective 8839
• Daily VWAP Bullish
• Weekly VWAP Bullish

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