London open: FTSE nudges higher; BAE Systems, Rolls-Royce rally
By Michele Maatouk
Date: Monday 17 Feb 2025
(Sharecast News) - London stocks were a touch firmer in early trade on Monday, but defence firms powered ahead amid expectations of an increase in spending.
At 0845 GMT, the FTSE 100 was up 0.1% at 8,739.40, with trading expected to remain quiet as US markets will be closed for Presidents Day.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "The struggle to maintain momentum last week looks set to bleed into early trading on Monday, with the FTSE 100 broadly flat at the open.
"Investors are keeping a close eye on US-led peace talks for the Ukraine war, especially since EU and Ukrainian officials were excluded from the discussions. On top of that, President Trump's threat to impose tariffs on European car imports starting April 2 is adding to the uncertainty, leaving traders cautious about the broader market outlook."
On home shores, the latest data from Rightmove showed that house price growth slowed in February as the stamp duty deadline loomed, but activity remained "robust".
House prices rose 0.5% on the month following a 1.7% increase in January. On the year, house prices were up 1.4% in February, down from 1.8% growth the month before.
The average price of a home stood at £367,994 this month, versus £366,189 in January.
Rightmove said price growth was muted for this time of year as new sellers lowered price expectations due to the looming stamp duty deadline and high competition.
It said the average number of available homes for sale per estate agency branch remained at a 10-year high, reducing sellers' pricing power.
Colleen Babcock, property expert at Rightmove, said: "New sellers are showing some pricing restraint after a fast start to the year, being mindful of both the high level of seller competition, and in England also of the looming stamp duty deadline and extra costs for some buyers. Agents report that some of the steam is coming out of new sellers' price expectations to fit the changing market conditions, which is a sensible reaction to attract buyer interest, and it will also help to support activity levels.
"The upcoming stamp duty deadline in England remains a key talking point, and while some movers may not be affected at all, others will be more severely impacted. We've previously suggested reforms such as regional variations in stamp duty charges to try and address some of the inequities in the current system. With the predicted conveyancing log-jam likely to cause some buyers to miss the deadline and end up paying more tax through no fault of their own, it would seem justifiable for the government to announce a short extension before the end of March."
In equity markets, defence firm BAE Systems was the top gainer on the FTSE 100, closely followed by Rolls-Royce, as European officials called for an emergency summit on the Ukraine war.
Richard Hunter, head of markets at Interactive Investor, said: "The possibility of increased military spending has underpinned the sector for some time, with the group being one of the preferred plays in the meantime, with Rolls-Royce also seeing the renewed interest lifting its shares by almost 2% and building on a gain of more than 90% over the last year."
Assura surged as it confirmed it has received four takeover proposals from US private equity firm KKR, the most recent of which valued the company at £1.56bn, and all of which have been rejected.
Moneysupermarket jumped as the price comparison site reported a rise in full-year profits and announced a share buyback programme of up to £30m.
Ukraine-based iron ore miner Ferrexpo was also a high riser amid the prospect of a potential Russia-Ukraine peace deal.
Market Movers
FTSE 100 (UKX) 8,739.40 0.08%
FTSE 250 (MCX) 20,977.47 0.31%
techMARK (TASX) 4,759.57 0.16%
FTSE 100 - Risers
BAE Systems (BA.) 1,293.50p 5.33%
Barclays (BARC) 301.60p 2.38%
Rolls-Royce Holdings (RR.) 636.20p 1.86%
Schroders (SDR) 376.80p 1.40%
Prudential (PRU) 734.00p 0.99%
CRH (CDI) (CRH) 8,602.00p 0.96%
Barratt Redrow (BTRW) 455.80p 0.80%
NATWEST GROUP (NWG) 431.50p 0.79%
HSBC Holdings (HSBA) 876.40p 0.77%
St James's Place (STJ) 1,109.00p 0.64%
FTSE 100 - Fallers
Flutter Entertainment (DI) (FLTR) 23,180.00p -1.90%
British American Tobacco (BATS) 3,058.00p -1.04%
Spirax Group (SPX) 7,840.00p -0.95%
Rentokil Initial (RTO) 420.70p -0.94%
Entain (ENT) 737.80p -0.89%
SSE (SSE) 1,495.00p -0.83%
United Utilities Group (UU.) 986.80p -0.78%
SEGRO (SGRO) 726.00p -0.74%
Croda International (CRDA) 3,223.00p -0.71%
Unite Group (UTG) 873.50p -0.68%
FTSE 250 - Risers
Assura (AGR) 45.90p 17.69%
Ferrexpo (FXPO) 107.00p 11.00%
Mony Group (MONY) 201.40p 6.06%
Discoverie Group (DSCV) 617.00p 4.93%
Primary Health Properties (PHP) 96.20p 4.85%
Chemring Group (CHG) 327.50p 3.97%
CMC Markets (CMCX) 227.50p 3.64%
Petershill Partners (PHLL) 276.00p 3.37%
QinetiQ Group (QQ.) 378.80p 2.82%
Cranswick (CWK) 5,120.00p 2.71%
FTSE 250 - Fallers
Wood Group (John) (WG.) 26.70p -7.93%
IP Group (IPO) 45.00p -7.79%
Hochschild Mining (HOC) 198.60p -1.68%
Raspberry PI Holdings (RPI) 682.00p -1.37%
Indivior (INDV) 779.00p -1.33%
Target Healthcare Reit Ltd (THRL) 82.50p -1.32%
Endeavour Mining (EDV) 1,732.00p -1.14%
HarbourVest Global Private Equity Limited A Shs (HVPE) 2,665.00p -1.11%
Wizz Air Holdings (WIZZ) 1,639.00p -1.03%
Burberry Group (BRBY) 1,179.00p -0.88%ferr
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