June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

FTSE lifted by defence stocks and Smiths Group

Published 17/11/2015, 17:18
© Reuters. A man walks through the lobby of the London Stock Exchange in London
UK100
-
C
-
EZJ
-
TSCO
-
BAES
-
RR
-
SMIN
-
CCL
-
HG
-
ICAG
-

By Sudip Kar-Gupta

LONDON (Reuters) - Britain's top equity index climbed on Tuesday, boosted by engineer Smiths Group (L:SMIN) and defence stocks, which rose as France stepped up its military response to last week's attacks in Paris.

The blue-chip FTSE 100 index closed up 2 percent at 6,268.76 points. The FTSE, nevertheless, remains down 4.5 percent since the start of 2015 and 12 percent below a record high reached in April.

Smiths Group surged 10.2 percent, topping the FTSE 100, after robust first-quarter results and a change in its pension plan funding that should bolster its cash flow.

Companies dealing in the defence and military industries also rose as France carried out new air strikes on Islamic State bases in northern Syria, following last Friday's attacks in Paris claimed by the Islamist group which killed more than 120 people.

Rolls Royce (L:RR), which slumped last week after a profit warning, rose 5.1 percent while BAE Systems (L:BAES) gained 2 percent.

"I'm keen on BAE at the moment, and I see the FTSE going up to 6,300 or 6,330 points soon," said Roderic Owen-Thomas, derivatives trader at JNF Capital.

Sainsbury also rose 2.1 percent after industry data from Kantar Worldpanel showed an increase in third-quarter sales at the supermarket, while rival Tesco (L:TSCO) rose after Citigroup (N:C) upgraded it to "buy" from "neutral."

However, budget airline operator easyJet (L:EZJ) fell 4.1 percent despite reporting an 18 percent jump in annual profit, while mining stocks also fell as the price of copper touched its lowest level in more than six years. [MET/L]

Analysts said concern that tourist numbers may fall following the attacks in Paris had weighed on easyJet shares.

© Reuters. A man walks through the lobby of the London Stock Exchange in London

Other tourism stocks recovered following an initial sell-off on Monday after the Paris attacks, with Carnival (L:CCL), TUI, Intercontinental Hotels and International Consolidated Airlines Group (L:ICAG) all ending higher.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.