Stock prices in London opened lower on Friday, tracking weakness across European equity markets, but losses were reversed as the session progressed.
By 10:20 GMT, the FTSE 100 (UKX), was up 0.1%, while the FTSE 250 had gained 0.2%.
InterContinental Hotels was the strongest performer on the FTSE 100, rising 2.6%.
Defence stocks also moved higher. BAE Systems gained 1.9%, Babcock rose 1.8%, and Rolls-Royce added 1.6%.
Pearson was the biggest faller on the FTSE 100, down 3.5%. The education group slipped after Barclays cut its price target to 1,070p from 1,175p, while maintaining an equal weight rating.
Next was the second-largest decliner, down 2.9%. The retailer confirmed that the redemption of B shares under its previously announced capital return scheme would take place on Friday. Eligible shareholders are expected to receive payment on or before January 28.
The redemption forms part of Next’s planned £421.3 million return of capital, announced on December 19 following a strong 2025. The B share scheme was priced at 360p per share and received shareholder approval at a general meeting on Thursday.
HSBC shares fell 0.5%. The bank said it is reviewing its insurance business in Singapore as part of Chief Executive Georges Elhedery’s broader overhaul of the group.
HSBC said the review will cover HSBC Life Singapore and that all options are being considered, including a potential sale that could be worth over $1 billion. The bank said Singapore remains a priority market and it will continue offering insurance products there.
On the FTSE 250, Genus was the top performer, up 9.9%.
The animal genetics company lifted full-year expectations after a stronger-than-expected first half and confirmed its Chinese porcine joint venture remains on track.
Genus said adjusted pretax profit for the six months to December 31 is expected to be about £50 million, or £55.6 million including a $7.5 million milestone payment linked to the joint venture.
Trading in its PIC division remained strong, while ABS performed in line with expectations. Full-year adjusted pretax profit, excluding the milestone payment, is now expected to come in moderately above the top end of guidance.
Close Brothers rose 6.0% after RBC upgraded the stock to outperform from sector perform and lifted its price target to 625p from 475p.
Watches of Switzerland gained 4.4% after Bank of America raised the stock to buy with a 550p price target.
Among smaller companies, Imaging Biometrics slumped 35% after saying it will not proceed with a phase two trial of gallium maltolate for glioblastoma.