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London shares saw a slight uptick on Tuesday, driven by retailers, as a weaker pound provided additional support to the exporter-focused FTSE 100 index. An index tracking retail stocks increased by approximately 3%, driven by a 15.2% jump in Kingfisher, as the home improvement retailer upgraded its profit forecast for the full year following a stronger-than-expected first half. The company's shares were poised for their largest single-session percentage increase since 1986. Other significant retailers also saw gains, with JD Sports Fashion climbing 1.6%, Frasers rising 2.3%, and Howden Joinery up by 3.5%. The British pound weakened, providing additional support for export-oriented companies, after a report indicated a slowdown in British business activity in early September. Additionally, another survey released on Tuesday revealed that British businesses have experienced a decline in momentum and confidence in anticipation of potential new tax hikes in Finance Minister Rachel Reeves' upcoming budget in November, along with a further decrease in hiring. Last week, the Bank of England maintained its benchmark interest rate at 4% and stated that it is watching for any signs of easing inflationary pressures before lowering borrowing costs again. The larger healthcare sector fell by 1.3%, primarily due to a 9.2% drop in Oxford BioMedica's stock following the release of its half-year results. Attention was also focused on GSK after the Trump administration urged pharmaceutical companies to be ready to increase production of leucovorin, a type of folic acid used as a treatment for certain autism patients. GSK had previously produced leucovorin, marketed as Wellcovorin.

Kingfisher's shares surged 17.4% to 296.2p, reaching their highest point since May. The home improvement retailer emerged as the top gainer on the FTSE 100, which increased by 0.12%. The company is targeting the "upper end" of its fiscal year adjusted pre-tax profit forecast of £480-540 million ($648-$730 million), compared to £528 million in 2024/25. It reported a first half adjusted pre-tax profit of £368 million, a 10.2% increase attributed to higher retail profits and reduced net finance costs. Chief Executive Thierry Garnier stated, "Our expectations for our markets for the year remain consistent with what we outlined in March, while being mindful of mixed consumer sentiment and political uncertainty." Year-to-date, with the session's gains included, the stock has risen 1.41% compared to the FTSE's nearly 13% increase.

Smiths Group's shares rose by 4% to 2,472p, reaching a record high and becoming the second-largest gainer on the FTSE 100 index. The company reported a fiscal year (FY) headline operating profit of £580 million ($783.35 million), reflecting a year-over-year organic growth of 13.1%. For FY26, the company anticipates organic revenue growth of 4-6% along with margin expansion, while reaffirming its improved medium-term targets. With today's gains included, the stock has increased by 44.27%.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 9000

• Primary support 9000
• Below 8900 opens 8600
• Primary objective 9600
• Daily VWAP Bullish
• Weekly VWAP Bullish

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