By Shashwat Chauhan and Johann M Cherian
(Reuters) -UK’s FTSE 100 closed at its highest since May 2018 on Friday, with AstraZeneca among the top gainers, while investors were relieved by how the domestic economy performed in November.
The blue chip FTSE 100 closed 0.6% higher, recording its second straight week of gains.
In November, the economy unexpectedly eked out a modest growth, lifted by higher spending in pubs and bars from World Cup cheerers and video game sales.
“It is too soon to conclude the economy will be able to get through this period of high interest rates and high inflation largely unscathed and we still think a recession is on its way,” said Ruth Gregory, senior UK economist at Capital Economics.
Among stocks, AstraZeneca advanced 1.8% after it signed a cooperation agreement with China’s Genertec Meheco for a COVID antibody drug Evusheld.
Banks like HSBC Holdings and Lloyds Banking Group were the biggest boost on the benchmark index gaining 1.7% and 2.8% respectively.
The mid-cap FTSE 250 also clocked two-straight weeks of gains, with British stocks riding on better than expected economic data both domestic and across the Atlantic.
Also this week, sectors like retailers and automobiles and parts that were among laggards in 2022, added between 4.5% and 7.5%, respectively.
“We had some encouraging trading statements from the retail sector, suggesting the Christmas holidays shopping season wasn’t as bad as expected and banks have performed well because there is a sense now that economic conditions in the first half of the year are going to be less adverse than people thought (before),” said Andrew Bell, chief executive of Witan Investment Trust.
The more domestically-focussed FTSE 250 midcap stocks ended 0.6% up, wile C&C Group slumped 9.0% after a dour full-year profit outlook.
888 Holdings fell 4.5% after the bookmaker said its CEO Yariv Dafna will step down from the role, while the group reported a 3% fall in quarterly revenue.
(Reporting by Shashwat Chauhan and Johann M Cherian in Bengaluru; Editing by Dhanya Ann Thoppil, Shailesh Kuber and David Evans)
