London stocks ended Monday mixed in a thin session, with US markets closed for Washington’s Birthday.
The FTSE 100 closed up 0.3% while the FTSE 250 dipped 0.2%, in a quiet start to the week as investors returned from the weekend.
NatWest led the FTSE 100, climbing 4.8% after starting its previously announced £750 million share buyback programme, scheduled to complete by 15 January next year. The bank was also recovering from a 4.1% fall on Friday following its annual results.
Defence stocks were among the day’s gainers after UK Prime Minister Keir Starmer said Britain must “go faster” on defence spending. He has already committed to increasing spending to 2.5% of GDP next year and 3% after the next election, with reports suggesting he is considering bringing forward the 3% target to 2029.
Melrose Industries rose 3.9%, Babcock International advanced 3.5% and BAE Systems added 3.0%.
On the FTSE 250, Pinewood Technologies plunged 33% after private equity firm Apax Partners confirmed it will no longer make a takeover offer. The company had been in discussions over a possible cash bid of 500p per share but Apax cited “prevailing challenging market conditions” as the reason for walking away.
Among smaller stocks, Pebble Beach Systems jumped 25% after winning a five-year contract worth an initial £1.3 million to support a tier-1 US streaming company expanding into live sports broadcasting. Pebble will provide ongoing support and maintenance under the contract, drawing on a long-standing relationship with its global partner.