UK stocks end up on earnings bump; Haleon, Howden shine
Reuters
Published Feb 29, 2024 08:48
Updated Feb 29, 2024 17:15
By Shristi Achar A and Johann M Cherian
(Reuters) -UK's FTSE 100 closed higher on Thursday underpinned by a positive batch of earnings from the likes of Haleon (LON:HLN) and Howden, setting the main index up for monthly gains, but a jump in Drax did little to offset monthly losses on the mid-cap index.
Haleon gained 5.6% after the Sensodyne toothpaste maker announced a share buyback plan given firm demand for its products and progress in reducing debt.
"The solid outlook combined with a reducing base of shares and falling interest expense should help to accelerate earnings per share growth in 2024," said Derren Nathan, head of equity research at Hargreaves Lansdown (LON:HRGV).
The FTSE 100 index closed up 0.1%, ending the second month in the year with a 0.2% gain. The exporter-heavy index however, underperformed Europe's STOXX 600 that hit a record high earlier in the month and notched a 1.9% gain in February.
Top gainer on the FTSE 100 was Howden Joinery with a 7.0% surge after the kitchens products supplier said it saw "encouraging" revenue growth in 2024.
The more domestically exposed FTSE 250 closed up 0.2% with Drax Group (LON:DRX), the UK's largest source of renewable electricity, jumping 11.2% after posting a 66% jump in annual profit and raising its dividend.
The mid-cap index underperformed the large-cap FTSE index in February, down 1.2% as worries of domestic slowing growth and uncertainty about the timeline for interest rate cuts hurt risk appetite.
Bucking the broader trend, International Consolidated Airlines dropped 3.6% as concerns over costs, supplies of new jets, and geopolitical risks the British Airways (LON:ICAG) owner's overshadowed strong 2023 results.
London Stock Exchange Group (LON:LSEG) dipped 0.4% after reporting preliminary full-year income largely in line with estimates.
Among others, Man Group rose 1.0% after posting a 17% rise in assets under management, while Ocado (LON:OCDO) gained 4.2% after the online supermarket and technology group said it would make a profit at the pretax level in about five or six years.
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Written By: Reuters
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