London stocks closed higher on Thursday, buoyed by hopes that the Bank of England could ease monetary policy after data showed the UK economy slipped into a technical recession in the fourth quarter.
The FTSE 100 gained 0.4% to finish at 7,597.53. The FTSE 250 climbed 0.5% to 19,099.62, and the AIM All-Share added 0.3% to close at 752.98.
UK gross domestic product declined 0.3% quarter-on-quarter in the three months to December, a sharper contraction than the 0.1% expected. The economy had shrunk 0.1% in the third quarter as well.
The weak data stoked optimism over BoE rate cuts. However, oil giants BP and Shell fell 1.6% and 1.3% respectively amid falling crude prices. Tobacco company Imperial Brands dropped 3.4% as its shares went ex-dividend.
In the FTSE 250, Close Brothers crashed 23% following a warning of potential financial impact from an FCA investigation into historical car loan arrangements. The bank also suspended its dividend.
Animal genetics firm Genus plunged 16% after projecting lower revenue and adjusted pretax profit for the first half of fiscal 2023 amid challenging Chinese porcine markets.
Among small-caps, North Sea producer EnQuest jumped 8.1% after highlighting its deleveraged balance sheet and strong 2023 output. CEO Amjad Bseisu said EnQuest now aims to pivot towards future growth in 2024.
FTSE All-Share Gainers
Petra Diamonds 9.5%, Enquest 8.07%, Hostelworld 7.88%, Schroders Cap 7.66%, Trifast 6.63%, Bloomsbury 6.18%, Regional Reit 5.96%, Motorpoint 5.59%, SIG 5.32%, Ithaca Energy 5.26%.
FTSE All-Share Fallers
Close Bros -22.51%, Genus -16.2%, NextEnergy Solar -4.42%, Smiths News -4.23%, Cab Payments -3.35%, Ultimate Prod -3.34%, Imperial Brands -3.25%, Aberforth Spli. -2.88%, Capricorn Energy PLC -2.73%, Octopus Energy -2.68%.
