FTSE ends week up 2% despite Friday blues

It is the second week in a row that London’s top index has finished higher.

Shares dropped on global markets (Jonathan Brady/PA) (PA Wire)

After a poor morning, the FTSE 100 regained some of its ground on Friday afternoon after markets in the US opened.

The index closed down after a strong week that has seen it gain nearly 2%.

The 11.38 point drop, or 0.2%, left the index at 7661.02.

“Having started the day very much on the back foot, after yesterday’s steep falls in the US, European markets have clawed back the worst of the day’s losses, with the FTSE 100 finishing higher for the second week in a row,” said CMC Markets analyst Michael Hewson.

“The rest of Europe has also seen a positive week, despite today’s pullback, buoyed by the ability of most companies to be able to pass on price rises and maintain their earnings guidance thresholds.”

Unilever shares rebounded to the top of the FTSE, more than making up the losses they suffered on Thursday following the company’s results.

After its results the business addressed its botched attempt to take over consumer giant GlaxoSmithKline.

“On the upside Unilever shares look set to finish the week higher in the aftermath of this week’s full year results, as they continue to recover their post Glaxo bid losses,” Mr Hewson said.

“The decision by management to rule out the prospect of an acquisition appears to have prompted investors to allow the benefit of the doubt to management, as they look to embark on a turnaround plan.

“There is also the fact that despite the sound and fury of recent events, the shares still look cheap on a relative basis.”

In the US the S&P 500 was trading down 0.5% while the Dow Jones had dropped 0.2% by the time European markets were wrapping up.

In Germany the Dax fell 0.4% while France’s Cac 40 closed down 1.3%.

The cost of a pound dropped by 0.07% to 1.3593 dollars and 0.04% to 1.1925 euros.

In company news, British American Tobacco said that sales of vaping products has soared, while cigarette sales fell.

The maker of Dunhill, Lucky Strike and Kent said that it had made £22 billion in sales from its cigarettes, but this is more than 3% lower than in 2020.

More than 18 million people brought one of BAT’s vape or non-cigarette products in 2021, up by nearly five million.

It expects sales from this division to reach £5 billion by the middle of the decade.

The biggest risers on the FTSE 100 were Unilever, up 135.5p to 3,914.5p, British American Tobacco, up 99.5p to 3,368.5p, Evraz, up 13p to 444.7p, Flutter Entertainment, up 310p to 11,360p, and Airtel Africa, up 3.8p to 336.6p.

The biggest fallers on the FTSE 100 were Spirax-Sarco, down 480p to 12,195p, Experian, down 110p to 2,925p, Segro, down 45p to 1246.5p, Ashtead, down 157p to 4969p, and Halma, down 70p to 2359p.