FTSE Another Leg Higher As Bank Of England Mute Rate Cuts -

FTSE Another Leg Higher As Bank Of England Mute Rate Cuts

May 09, 2024Jeremy ParkinsonFinance, No picture0

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On Thursday, the pound and gilt yields decreased as Britain’s leading stock index reached a new high following the Bank of England’s move to lower interest rates. This decision was supported by a second official, resulting in a drop of 0.4% in the pound against the dollar to $1.2447 and a decrease to 86.18 pence per euro, down 0.2%. The FTSE 100 stock index rose by 0.4% to 8387.82 points, reaching a new intraday record. Gilt prices also increased, causing the yield on the 10-year benchmark gilt to remain relatively stable at 4.138%. The BoE’s Monetary Policy Committee voted 7-2 to maintain rates at 5.25%, with Deputy Governor Dave Ramsden and Swati Dhingra advocating for a cut to 5%.IMI Plc, a UK engineering firm, has reached a two-and-a-half-year high in its stock price due to strong quarterly revenue growth. The company’s shares have jumped 1% to 1,864.50 pence, marking their highest level since November 19, 2021. This increase has positioned the stock as one of the top gainers on the FTSE 100 index. IMI Plc has reported a 4% increase in quarterly group organic revenue and has reiterated its guidance for the fiscal year 2024, expecting adjusted EPS to be between 120 pence and 126 pence. The company has also confirmed that its restructuring program is on track to deliver additional benefits of Â£15 million in 2024 and Â£7 million in 2025. As of the last close, the stock is up 9.6% year-to-date.On the negative side of the ledger Airtel Africa Plc, a company listed on the London Stock Exchange, experienced a 2.8% drop in its stock price to 112.70p, making it one of the top percentage losers on the FTSE 100 index. The telecommunications and mobile money services provider, operating mainly in East, Central, and West African countries, reported an annual loss of $89 million after-tax, compared to a profit of $750 million the previous year. The UK-based company attributed this annual loss to significant foreign exchange challenges, resulting in a net exceptional loss of $549 million after tax. Airtel Africa also noted a 5.3% decline in reported currency revenues to $4.98 billion for the fiscal year, primarily due to currency devaluation, particularly in Nigeria. As a result of these developments, the company’s stock has decreased by approximately 13% year-to-date.
FTSE Bias: Bullish Above Bearish below 8300