Blue-chip shares in London extended their rally on Friday, with the FTSE 100 closing at a record high as renewed optimism, fresh listings and upbeat broker calls helped offset concerns about slowing UK growth.
The FTSE 100 ended up 0.7% at 9,491.25, setting a new closing high and coming within a whisker of an intraday record of 9,494.64. The mid-cap FTSE 250 also gained 0.7% to 22,197.62, while the AIM All-Share rose 1.0% to 796.52.
The upbeat session came despite lingering uncertainty over the ongoing US government shutdown and weaker domestic economic data. The UK services PMI slipped to 50.8 in September from 54.2 in August, with S&P Global pointing to delayed corporate spending ahead of the Autumn budget.
Still, investor sentiment in the city improved after food and drink giant Princes Group confirmed plans to float on the London Stock Exchange. The owner of brands including Princes tuna, Branston, Flora and Napolina reported £2.1 billion in 2024 revenue and adjusted EBITDA of £122.3 million. Chief executive Simon Harrison said the firm had built “an international £2 billion food and drink portfolio” through organic growth and targeted acquisitions.
Meanwhile, Beauty Tech Group made a strong market debut, closing at 288p — above its 271p IPO price. The company sells at-home beauty technology under the Tria Laser, CurrentSkin and Ziip Beauty brands.
Broker upgrades added fuel to the rally. Bunzl climbed 4.5% after Goldman Sachs dropped its ‘sell’ rating, while Diploma gained 2.3% after a double upgrade to ‘outperform’ from RBC Capital Markets. Schroders rose 3.7% as Citi upgraded the asset manager to ‘buy’, citing strong exposure to equity markets and potential recovery in private assets. Intertek added 2.6% after Bank of America began coverage with a ‘buy’ rating.
Banks were also in favour, with NatWest up 3.8%, Standard Chartered up 1.7%, Barclays up 1.4% and HSBC up 1.7%.
Not all stocks joined the party. JD Wetherspoon fell 5.6% despite record sales and a profit rebound, as analysts warned higher wages and energy costs could squeeze margins in the year ahead.
Away from the FTSE, Audioboom surged 18% after reports from Sky News suggested the podcast producer — known for Formula One’s official show — is exploring takeover talks, with Fox Corp and iHeartMedia among potential bidders.
Across the Atlantic, US stocks were higher at London’s close, with the Dow up 0.8%, the S&P 500 gaining 0.4% and the Nasdaq up 0.2%.
Despite the upbeat tone, strategists at Bank of America cautioned that markets may be “under-pricing the risk of weakening growth momentum” and “over-pricing the support from productivity growth,” suggesting scope for a pullback in the months ahead.