The FTSE 100 index surged back above the 9,300 level on Monday, up 46 points, reaching 9,331 points, marking a near six-week high. Gains were led by pharmaceuticals giant GSK, whose shares rallied following news of a leadership change, alongside strength in mining, defence, and financial names.
GSK was the standout performer, advancing 3.5% (£52) to £1,538 after announcing that Luke Miels will succeed Emma Walmsley as chief executive from early next year. Walmsley’s tenure was marked by solid financial discipline, but investors have long questioned GSK’s muted growth profile.
Derren Nathan, head of equity research at Hargreaves Lansdown, commented that while GSK has consistently met guidance, long-term revenue momentum remains subdued.
The market appears to be backing Miels for now, as optimism grew that he can steer the company towards its ambitious $40 billion sales target for 2031.
The index’s gains were broad-based, with AstraZeneca shares also climbing 1% (£140) to £11,140. The drugmaker announced plans to directly list ordinary shares on the New York Stock Exchange while retaining its London listing and UK headquarters.
The move is aimed at broadening its investor base as it increases investment in the US, including a $50 billion expansion programme spanning manufacturing and R&D.
Industrial heavyweight Rolls-Royce advanced £5.5 to £1,188, edging closer to the symbolic £100 billion valuation mark, while insurers and miners also contributed to the market’s rise.
From the FTSE leaderboard, Antofagasta rose £63 (2.36%) to £2,729, Prudential added £23.5 (2.27%) to £1,058.5, and Convatec gained £5.2 (2.31%) to £230.4.
JD Sports Fashion shares climbed 2.7% to £91.4, while Metlen Energy & Metals added 2.45% to £48.05.
Investor sentiment was also supported by gold trading above $3,800 an ounce for the first time, reflecting safe-haven demand and hopes of further US Federal Reserve rate cuts later this year.
On Wall Street, optimism over inflation data saw the Dow Jones climb 0.7%, the S&P 500 rise 0.6%, and the Nasdaq Composite up 0.4%. In Asia, the Nikkei 225 fell 0.9%, but Hong Kong’s Hang Seng index advanced 2%, underscoring mixed regional sentiment.
Meanwhile, concerns about a potential US government shutdown eased slightly after reports that President Trump would meet both Democratic and Republican leaders to avoid a funding deadlock.
As the FTSE 100 index is approaching its all-time high, most of the momentum is driven by the pharmaceutical stocks and a rebound in global risk appetite. However, geopolitical risks and US fiscal uncertainty continue to loom large, leaving investors wary despite the current rally.
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