London stocks start week on steady note; Melrose shines

7:44 am Monday, November 18th, 2024

(Reuters) – UK’s main stock indexes traded in a tight range on Monday, as caution prevailed ahead of an inflation report due later in the week, while conglomerate Melrose jumped following an upbeat trading update.

In a quiet start to the week, the FTSE 100 index inched up 0.2%, buttressed by gains in precious metal miners as bullion prices rebounded. [GOL/]

Melrose Industries rose 6.4% to levels seen more than three months ago, after the owner of aerospace parts maker GKN Aerospace reported a jump in revenue over the past four months and said it expects to deliver a surge in free cash flow in 2025.

“Historically Melrose bought up industrial businesses and executed a buy, improve, sell model – investors will hope the ‘improve’ bit has been retained,” said Russ Mould, investment director at AJ Bell.

The midcap FTSE 250 that houses more domestically exposed companies dipped 0.1%, ahead of October inflation data expected on Wednesday.

A majority of market participants, as per data compiled by LSEG, have priced in that the Bank of England could leave interest rates unchanged at its last meeting for the year in December, despite signs of the economy in contraction.

The main indexes logged losses in the previous week, with the FTSE 100 clocking its fourth straight week in declines.

Meanwhile, Cerillion added 2.7% after the billing, charging and customer relationship management software solutions provider reported strong annual results.

IQE pared early losses and was last down 3.7% after the British semiconductor wafer maker said it would start a strategic review of its assets and warned that revenue would not grow this year due to a slower-than-expected recovery and weak consumer demand in end markets.

The construction and materials index was among the top sectoral decliners. A monthly report from online property portal Rightmove said asking prices for homes fell over the last month by more than is usual for the time of year.

Also on tap this week are October retail sales figures and November business activity data.

(Reporting by Johann M Cherian in Bengaluru; Editing by Shinjini Ganguli)