Experience the latest market update: UK stocks rise with gains in mining and life insurance sectors, while Bank of Georgia and Rotork lead mid-cap advances. Get insights into the market’s response to recent developments.
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On Wednesday, UK equities made strides with support from mining companies and life insurers, while Bank of Georgia and Rotork bolstered mid-cap stocks through brokerage actions. The FTSE 100, which is weighted towards exporters, gained 0.5% as of 0815 GMT, while the midcap FTSE 250 index surged by 0.7%. Both indices appeared set for a consecutive second day of increases.
British stocks rebounded on Tuesday following a harsh recent sell-off prompted by data hinting at ongoing inflationary pressures, stoking concerns of further interest rate hikes by the Bank of England.
According to Craig Erlam, Senior Market Analyst at OANDA, “There was likely some profit-taking earlier in the month, leading to stock market retractions and the current high level of fluctuations.”
Life insurance company shares rose by 1.7%, driving sectoral gains. This sector had suffered a significant decline this year, plummeting nearly 14%. Precious metal miners also experienced a boost of 1.3%, mirroring the movement of gold prices.
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Bank of Georgia saw a 2.9% rise after brokerage firm Jefferies more than doubled its price target for the stock to 5,900 pence from 2,120 pence. This was the loftiest target among six analysts covering the stock, as per Refinitiv data. Bank stocks overall climbed by 0.8%. Additionally, Rotork increased by 3.7% after brokerage Peel Hunt upgraded the stock from “add” to “buy”. Both Bank of Georgia and Rotork secured positions among the top gainers on the FTSE 250.
In the midst of this, a survey indicating a decline in factory output and broader vulnerability in the face of increased interest rates suggested that Britain’s economy might contract in the current quarter, carrying the risk of recession.
On the corporate front, Reckitt Benckiser announced that Chief Financial Officer Jeff Carr would retire in March 2024, with Nike’s Shannon Eisenhardt set to take over. Shares of Reckitt Benckiser rose by 1%.
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