London close: Stocks finish November on flat note

(Sharecast News) - London's equity markets ended just above the waterline on Friday, as investors processed a raft of UK economic data and developments in the corporate sector. The FTSE 100 index managed gains of 0.07% to close at 8,287.30 points, while the FTSE 250 added 0.04%, settling at 20,771.57 points.

In currency markets, sterling was last up 0.1% on the dollar to trade at $1.2700, while it advanced 0.02% against the euro, changing hands at €1.2022.

"European stock indices had a mixed session on the last day of the month, awaiting Monday's outcome of France's political debacle, amid quiet Thanksgiving trading," said IG senior analyst Axel Rudolph.

"Euro area inflation rising as expected to 2.3% did not help prop up the euro which saw its worst monthly loss in over a year.

"EUR-USD dropped by around 3% in November amid fears of US tariffs, weak Eurozone growth and political instability in France and Germany."

Rudolph noted that next week's US non-farm payrolls would be "closely watched" by market players.

"While the West Texas Intermediate crude oil price rose by around 0.70%, the Brent oil price flatlined, widening the spread between the two.

"Despite gingerly regaining some of Monday's sharp losses, gold and silver prices end the week and month in negative territory, in case of gold on the back of an eight week bullish spell."

UK retail footfall drops, housing market shows signs of resilience

In economic news, retail footfall across the UK fell sharply in November, with poor weather and weak consumer confidence weighing on activity.

The British Retail Consortium reported a 4.5% year-on-year decline, with high street footfall down 3.7% and shopping centres seeing a 6.1% drop.

Retail parks also slipped 1.1%, reversing October's 4.8% rise.

The figures, covering the four weeks to 23 November, excluded Black Friday, which this year fell later in the month.

Helen Dickinson, chief executive of the BRC, called the fall "disappointing".

"A later-than-usual Black Friday and low consumer confidence meant customers were hesitant to hit the shops," she said.

"Some northern cities also suffered particularly badly due to Storm Bert, which caused travel disruption towards the end of the month."

In contrast, the UK housing market showed signs of resilience.

Property marketing platform Zoopla reported that lower mortgage rates spurred a recovery, with house prices rising across all regions in October.

Average prices edged 1% higher year-on-year to £267,200, and buyer demand surged 25% compared to last year.

"The housing market has returned to growth in 2024, with more sales and higher house prices compared to 2023," Zoopla said.

"The sales market has performed better than we expected a year ago, thanks to faster growth in household incomes and lower mortgage rates."

Mortgage approvals also hit a two-year high, with Bank of England data showing 68,303 approvals in October, well above forecasts.

Net borrowing rose to £3.4bn, supported by declining mortgage rates, which fell to their lowest level since May 2023.

"First, quoted mortgage rates fell markedly between May and October," said Matt Swannell, chief economic advisor to the EY Item Club.

"Second, forward-looking buyers will have been keen to set purchases in train before the temporary increase in stamp duty thresholds expires at the end of March.

"Market pricing has been volatile over the past couple of months."

Zoopla anticipated a 2.5% rise in house prices next year, driven by steady rates and rising incomes.

On the continent, inflation dynamics presented a mixed picture, with euro area inflation ticking higher to 2.3% annually in November, up from 2.0% in October, according to Eurostat.

Monthly prices fell 0.3%, driven by lower service costs, but energy prices increased.

In Germany, retail sales fell 1.5% in October, a steeper decline than expected, while import prices continued to drop.

French inflation also edged up, with the harmonised index of consumer prices rising 1.7% year-on-year, in line with forecasts, marking a rebound from September's three-year low.

Anglo American jumps, Georgian banks sink on EU negotiation withdrawal

On London's equity markets, Anglo American surged 4.35%, buoyed by an upgrade to "buy" from "hold" by Jefferies, which also raised its price target for the mining giant to 2,850p from 2,500p.

Similarly, IMI climbed 2.75% following an upgrade to "buy" from Bank of America Merrill Lynch.

Spire Healthcare Group rose 2.73% on reports that India's Narayana Health was in talks to acquire a controlling stake in the company.

The Economic Times suggested Narayana is aiming to secure at least 51% of Spire's shares through an open offer, with the possibility of taking the company private if it reaches 75% ownership.

"Australia's Ramsay Health tabled a £1bn bid in 2021 but the target's shareholders voted it down," said Dan Coatsworth, investment analyst at AJ Bell.

"Spire's valuation has weakened considerably since mid-2023 and that looks to have put it on the radar of Indian private hospital group Narayana Health.

"Market chatter suggests Narayana is in talks to buy a controlling stake in Spire, sending shares in the UK stock up."

TI Fluid Systems added 1.85% after confirming it had agreed to a £1.03bn takeover by Canadian automotive parts maker ABC Technologies.

Backed by private equity fund Apollo, ABC will pay 200p per share in cash.

The announcement followed Thursday's 5.7% rally in TI Fluid shares.

On the downside, BAE Systems fell 5.5% after Bank of America Merrill Lynch downgraded the defence contractor to 'underperform'.

Georgian banks also suffered steep losses, with Bank of Georgia Group dropping 6.21% and TBC Bank Group down 5.9%.

The declines came as the Georgian government announced it was suspending negotiations to join the European Union, a move that unsettled investors in the region.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,287.30 0.07% FTSE 250 (MCX) 20,771.57 0.04% techMARK (TASX) 4,682.23 -0.54%

FTSE 100 - Risers

Anglo American (AAL) 2,520.50p 5.42% IMI (IMI) 1,820.00p 3.29% Rolls-Royce Holdings (RR.) 558.60p 2.38% Next (NXT) 10,080.00p 2.21% Antofagasta (ANTO) 1,702.50p 1.82% Glencore (GLEN) 379.95p 1.66% B&M European Value Retail S.A. (DI) (BME) 346.90p 1.28% Fresnillo (FRES) 646.00p 1.25% Smurfit Westrock (DI) (SWR) 4,324.00p 1.24% Smith & Nephew (SN.) 997.00p 1.20%

FTSE 100 - Fallers

BAE Systems (BA.) 1,227.00p -4.88% JD Sports Fashion (JD.) 101.80p -1.55% Berkeley Group Holdings (The) (BKG) 4,148.00p -1.47% Prudential (PRU) 641.80p -1.38% Vodafone Group (VOD) 70.88p -1.14% Severn Trent (SVT) 2,697.00p -1.06% United Utilities Group (UU.) 1,119.50p -0.89% Centrica (CNA) 127.40p -0.86% Intertek Group (ITRK) 4,716.00p -0.84% Rentokil Initial (RTO) 393.80p -0.81%

FTSE 250 - Risers

Dr. Martens (DOCS) 69.00p 5.10% Direct Line Insurance Group (DLG) 234.80p 4.63% Raspberry PI Holdings (RPI) 368.90p 4.45% SDCL Energy Efficiency Income Trust (SEIT) 51.20p 2.81% Spire Healthcare Group (SPI) 225.50p 2.73% Future (FUTR) 901.50p 2.50% Quilter (QLT) 149.90p 2.46% Johnson Matthey (JMAT) 1,359.00p 2.18% Aston Martin Lagonda Global Holdings (AML) 106.00p 1.92% Premier Foods (PFD) 195.60p 1.88%

FTSE 250 - Fallers

Bank of Georgia Group (BGEO) 4,685.00p -6.21% TBC Bank Group (TBCG) 3,030.00p -5.90% W.A.G Payment Solutions (WPS) 81.00p -3.57% QinetiQ Group (QQ.) 415.20p -3.49% NextEnergy Solar Fund Limited Red (NESF) 69.10p -2.68% Travis Perkins (TPK) 760.50p -2.12% Ninety One (N91) 159.40p -1.91% North Atlantic Smaller Companies Inv Trust (NAS) 3,760.00p -1.83% Wood Group (John) (WG.) 52.90p -1.76% Pennon Group (PNN) 603.00p -1.71%