The UK stock market continued its upward movement Thursday as traders processed a wave of corporate earnings and news of potential U.S.-Iran negotiations. The FTSE 100 index climbed 0.1%, reaching 10,899.86, adding to three days of consecutive gains. Investors were also encouraged by reports suggesting the Strait of Hormuz might soon reopen, easing some geopolitical concerns.
WPP showed the strongest performance, surging 25% after it revealed unexpectedly strong first-half profits. The company recorded pre-tax earnings of 106 million pounds, a rise from the 98 million pounds a year prior. Despite a significant drop in reported earnings per share—falling by 57.5% to 1.7 pence per share—the results were welcomed as better than expected. Diageo also saw notable progress, with its shares rising 7.5% following the announcement of a $1 billion cost-cutting initiative. Homebuilder Persimmon added 3.5% as it forecasted higher annual house deliveries than previously estimated. Outsourcing firm Serco experienced a near 7% increase after disclosing improved underlying profits and expanding its share buyback strategy.
Tullow Oil, an oil and gas explorer with a West-Asia focus, initially dropped sharply due to worries about its debt balance. It later bounced back to trade 1% lower. Budget airline Wizz Air lost 4.3% after disclosing a larger-than-expected quarterly loss. The S&P Global UK Construction PMI increased to 44.7 in July. It was up from 38.4 in the prior month. This signaled some improvement in the construction sector. The sector had previously hit a six-year low in May.