[Thursday Markets Survey: UK Economy Resilient as FTSE Gains and Burberry Leads]
The FTSE 100 closed up 0.2% and the FTSE 250 edged higher by 0.1% early Thursday. Office for National Statistics (ONS) data indicated that the UK economy grew 0.7% in the third quarter, accelerating beyond earlier forecasts.
The ONS reported that economic expansion reached 0.7% in Q3, up from 0.5% in Q2—the fastest pace in over two years. Forecasts from the Office for Budget Responsibility had anticipated between 0.2% and 0.3% earlier in the week. While services expanded by 0.9%, the construction sector contracted by 0.7%. ONS chief economist Grant Fitzner highlighted “private sector wages easing and inflation picking up” as key drivers.
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Burberry leads the FTSE 100, surging 8.01% to 1,181p after half-year results revealed an adjusted operating profit of £62m, compared with £19m a year earlier. The company also reported a fifth consecutive quarter of comparable sales growth.
3i rose 3.63% following the results and the announcement of a purchase program up to £750m.
Rolls-Royce gained 2.73% after announcing a £1.5bn share buyback and reiterating full-year guidance. Barratt Redrow topped the charts at 3.38%.
Miners lagged behind, while spot gold slid 1.6% to $3,925. Endeavour Mining fell 8.82% and Fresnillo down 3.10%.
ICG underperformed, dropping 2.97%.
In the FTSE 250, B&M climbed 16.77% after strong half-year results. Chief executive Tjeerd Jegen noted “Back to B&M Basics is starting to deliver.”
Michael Page rose 5.61% and Hays 5.38%.
Dr. Martens fell 15.30% after first-half revenue declined 9.2% at constant exchange rates. WH Smith lost 7.49% following full-year results showing flat like-for-like sales in the first ten weeks of the new year. Volex edged down 6.88% and Lancashire slipped 7.67%.
Wizz Air reported a half-year net profit of €108.1m, down from €323.5m, driven by revenue growth of 13.8%. BAE Systems raised its free cash flow outlook to approximately £3bn from over £2bn, leaving sales and earnings forecasts unchanged.
Oil prices remain largely unchanged today, with Brent trading at $92.78 (January contract) and WTI down 0.2% at $86.40 (December contract).