The FTSE 100 in London closed marginally higher on Wednesday, reaching a new all-time peak driven by strong performances in the utilities and telecommunications sectors. The index added 0.06%, bolstered notably by a remarkable surge in SSE PLC shares, which climbed 16.84% to 2,307p. This leap marked a significant contributor to the index's upward momentum and underscored investor confidence in the energy infrastructure company.

Noteworthy gains were also seen in Airtel Africa PLC, whose share price rose 2.76% to 312.40p, hitting a record high. The telecommunications firm’s improvement followed a striking financial report revealing a 796.6% increase in its nine-month pre-tax profit, totalling $494 million. This robust earnings update was met with positive market reception, driving the stock up by as much as 9% during the day. Similarly, International Consolidated Airlines Group S.A. increased 2.53% to 392.50p, supported by broader sector optimism.

Conversely, some blue-chip stocks lagged. Experian PLC fell 4.48% to 3,323p, and Auto Trader Group Plc dropped 3.67%, closing at a 52-week low of 702.60p. Taylor Wimpey PLC also experienced a decline of 3.92%, retreating to 101.65p. BT Group was among the decliners, down 2.5%, affected by disappointing revenue figures in the third quarter, reflecting some caution in the telecommunications space despite Airtel Africa’s strong performance.

Market breadth showed a healthy tilt towards advancing stocks, with 1,063 rising shares compared to 673 falling, and 573 remaining unchanged on the London Stock Exchange. This diverse activity reflects selective optimism among investors, who appeared to favour companies demonstrating strong earnings or sectoral growth potential.

Commodity markets impacted investor sentiment as well. Gold futures for December delivery climbed 2.15%, reaching $4,204.70 per troy ounce, continuing its recent streak as a safe haven in the face of uncertainty. In contrast, crude oil saw declines: December Brent futures fell 3.48% to $62.89 per barrel, and US crude for December delivery dropped 3.83% to $58.70 per barrel, reflecting concerns over demand or supply factors in the energy market.

Currency movements were relatively subdued, with GBP/USD steady at 1.31 and EUR/GBP unchanged at 0.88. The US Dollar Index Futures was slightly down by 0.02% to 99.30, indicating a broadly stable but cautiously positioned forex environment.

Economic indicators provided additional context to the market movements. The Bank of England reported a slight rise in net consumer credit borrowing to £1.045 billion in December 2024, up from £900 million the previous month. This uptick in consumer credit might signal increased spending or borrowing pressures, relevant for sectors sensitive to consumer demand.

Overall, Wednesday’s session highlighted a market in cautious but persistent growth mode, with investors reacting positively to strong corporate earnings and resilient sectors such as energy and telecommunications, while remaining wary of less robust performers and volatile commodity prices.

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  • [1] (Investing.com) - Paragraphs 1, 2, 3, 5, 6, 7
  • [2] (Marketscreener) - Paragraphs 1, 2, 5, 6, 7
  • [3] (RTT News) - Paragraphs 2, 4, 7

Source: Noah Wire Services