Signage is seen outside the entrance of the London Stock Exchange in London, Britain. Aug 23, 2018. REUTERS/Peter Nicholls/File Photo
Aug 11 (Reuters) – Britain’s domestically focused mid-cap index closed at a record high on Wednesday after aerospace supplier Meggitt sky-rocketed on a new $9.7 billion takeover offer, while the FTSE 100 ended at an 18-month peak on gains in major financial stocks.
The mid-cap index (.FTMC) surged 0.8% to a record high of 23,756.83 points, with Meggitt (MGGT.L) serving as the biggest boost after it said it received a preliminary proposal from U.S. rival TransDigm Group (TDG.N).
Meggitt’s shares climbed 16.1% to a record high after the offer, days after it agreed on a bid from Parker-Hannifin (PH.N). read more
The blue-chip FTSE 100 (.FTSE) rose 0.8% to finish at 7,220.14 points, its highest level since Feb 2020. Financial stocks and export-oriented sectors such as mining and consumer staples were the biggest boosts.
Avast (AVST.L) was among the top gainers on the FTSE 100, up 3.1%, after U.S. based NortonLifeLock Inc (NLOK.O) agreed to buy the company for $8.6 billion in cash and shares to create a leader in consumer security software. read more
Positive earnings, cheap interest rates and re-opening optimism have pushed the FTSE 100 up 11% this year. But it has lagged its peers in the developed world, due to its lower exposure to technology firms, which had thrived during the COVID-19 pandemic.
Food delivery company Deliveroo (ROO.L) dropped 6.1% after it said there was no material impact from the wider reopening of restaurants in its biggest market, Britain, in the second quarter. read more
“The pandemic has clearly offered a structural growth opportunity for Deliveroo, but the longer-term outlook depends on how demand holds up in a post-pandemic world,” said Susannah Streeter, senior analyst at Hargreaves Lansdown, in a note.
Among the gainers, British motor insurer Admiral (ADML.L) rose 3.9% after it reported a 76% surge in first-half earnings and announced a 27.1 pence special dividend.
Provident Financial (PFG.L) jumped 10.2% to a seven-month high after its half-yearly adjusted profit surged.
Reporting by Shashank Nayar and Ambar Warrick in Bengaluru; Editing by Amy Caren Daniel and Barbara Lewis
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