London close: FTSE ends up as defensives gain, sentiment recovers

(Sharecast News) - London stocks ended a mostly weaker session in the black on Thursday despite a surge in oil prices, helped by a strong showing from energy names and defensives, as sentiment improved following a report that Iran is drafting a protocol with Oman to monitor transit through the strait of Hormuz. The FTSE 100 closed up 0.7% at 10,436.29. Brent crude was up 6.5% at $107.77 a barrel, while West Texas Intermediate was 11.4% higher at $111.57.

Stocks had kicked the session off with heavy losses and spent most of the day in the red, after Donald Trump said in his first national address since the start of the war that the US would hit Iran "extremely hard" in the coming weeks.

In his speech, which lasted just under 20 minutes, the US President said the war with Iran was nearing completion" but that the US would hit the country "extremely hard" over the next two to three weeks.

"We are on track to complete all of America's military objectives shortly, very shortly," he said.

Trump said negotiations between the US and Iran are "ongoing". However, if no deal is struck, the US will "hit each and every one of their electric generating plants very hard, and probably simultaneously," he said.

The US president also urged countries that get their oil through the Strait of Hormuz to "build up some delayed courage" and get involved to ensure it reopens.

Danni Hewson, head of financial analysis at AJ Bell, said: "The Easter weekend might be looming for investors but there's little cheer to be found as markets remain under pressure after Donald Trump's opaque comments on Iran.

"The prospect of further escalation over the weekend has seen many investors rush to take defensive positions.

"In London, the focus has been on stuff people can't do without even when their cost of living is under pressure."

In equity markets, oil giants BP and Shell gushed higher amid rising oil prices.

Defensive utilities were on the rise, with British Gas owner Centrica and National Grid among the top gainers, while tobacco companies Imperial Brands and British American Tobacco also advanced.

Discount retailer B&M European Value Retail shot up after an initiation at 'buy' by Kepler Cheuvreux.

Lloyds Banking Group ended a touch higher after saying it would with its £1.95bn compensation provision for the motor finance miss-selling scandal after assessing the regulator's final ruling.

However, the lender warned there was still a number of uncertainties, including response rates, operational costs and any litigation.

"The ultimate outcome may also differ dependent upon potential actions by various parties, including legal proceedings and complaints. The group remains committed to ensuring customers receive appropriate and timely redress," it added.

Market Movers

FTSE 100 (UKX) 10,436.29 0.69% FTSE 250 (MCX) 21,642.30 -0.21% techMARK (TASX) 5,794.00 0.94%

FTSE 100 - Risers

3i Group (III) 2,687.00p 3.99% Centrica (CNA) 218.50p 3.07% Shell (SHEL) 3,543.50p 2.90% Tesco (TSCO) 487.00p 2.85% Rentokil Initial (RTO) 488.30p 2.67% BP (BP.) 591.20p 2.64% Whitbread (WTB) 2,398.00p 2.30% Pearson (PSON) 1,009.00p 2.25% National Grid (NG.) 1,323.00p 2.20% British American Tobacco (BATS) 4,407.00p 2.18%

FTSE 100 - Fallers

St James's Place (STJ) 1,211.00p -2.26% Smurfit Westrock (DI) (SWR) 2,941.00p -2.13% Kingfisher (KGF) 282.90p -2.01% Experian (EXPN) 2,592.00p -1.78% Fresnillo (FRES) 3,436.00p -1.72% Standard Chartered (STAN) 1,590.50p -1.55% Rolls-Royce Holdings (RR.) 1,188.50p -1.53% Weir Group (WEIR) 2,886.00p -1.50% Metlen Energy & Metals (MTLN) 33.40p -1.47% NATWEST GROUP (NWG) 575.40p -1.34%

FTSE 250 - Risers

B&M European Value Retail (BME) 184.00p 6.05% Ceres Power Holdings (CWR) 337.40p 5.31% Genus (GNS) 2,540.00p 3.67% Ithaca Energy (ITH) 254.00p 3.67% Bytes Technology Group (BYIT) 291.20p 3.48% Diversified Energy Company (DI) (DEC) 1,292.00p 3.19% Playtech (PTEC) 375.00p 3.16% Aston Martin Lagonda Global Holdings (AML) 38.42p 3.11% AEP Plantations (AEP) 1,800.00p 2.86% The Renewables Infrastructure Group Limited (TRIG) 66.00p 2.48%

FTSE 250 - Fallers

OSB Group (OSB) 513.00p -5.00% Pollen Street Group Limited (POLN) 802.00p -4.52% Taylor Wimpey (TW.) 84.56p -4.52% Pan African Resources (PAF) 147.80p -3.78% Ashmore Group (ASHM) 215.60p -3.66% Hays (HAS) 32.12p -3.37% Hochschild Mining (HOC) 617.00p -3.37% THG (THG) 28.66p -3.31% HGCapital Trust (HGT) 381.00p -2.81% Domino's Pizza Group (DOM) 173.10p -2.59%