FTSE flat as subdued investor mood persists

The FTSE 100 eked up just 0.05% on Thursday, closing 3.84 points higher at 7,902.61.

The FTSE 100, which is more internationally focused, eked up just 0.05% on Thursday (Alamy/PA)

It was a mellow session for London’s top stock exchange, which was flat on Thursday as losses from packaging giants cancelled out meagre gains.

A subdued mood among investors came as fresh UK inflation figures on Wednesday prompted a flurry of experts to caution over a prolonged series of interest rate hikes.

Former Bank of England policymaker Michael Saunders predicted the Bank will opt to increase the base rate one last time in May, to 4.5%, before inflation begins to fall sharply through the rest of the year.

More interest hikes could be on the cards to control sticky inflation which remained above 10% in March, other analysts cautioned.

Nevertheless the FTSE 100, which is more internationally focused, eked up just 0.05% on Thursday, closing 3.84 points higher at 7,902.61.

Shares in real estate investment trust Segro jumped by around 3.5% after the group said the year had got off to a good start thanks to higher occupier demand.

There were also modest gains for GSK’s pharmaceutical spin-off Haleon and business insurance giant Beazley.

But they were offset by losses for packaging giants DS Smith, Smurfit Kappa, and Mondi.

There was also little movement for the pound, which edged up just 0.1% against the US dollar to 1.25 and was flat against the euro at 1.1347 at the close.

Stock markets elsewhere in Europe failed to keep their head above water, with the German Dax down 0.62% and the Cac 40 down 0.14%.

And US markets started the day’s trading firmly in the red, with the S&P 500 down 0.45% and Dow Jones down 0.25% when European markets closed.

In company news, WH Smith said its profit more than doubled to £45 million before tax as the business was helped by the easing of pandemic restrictions in the six months to the end of February.

The retailer also announced plans to open more than 120 new shops, and said that by the end of this year around 85% of its profits will come from shops in travel locations.

Shares in WH Smith dipped by 1.7%.

Elsewhere shares in Deliveroo fell by 0.6% after the takeaway company reported a slowdown in demand.

Orders fell by 3% in the first three months of the year. But because of rising prices, the value of the orders increased by 6%, the company revealed on Thursday.

Airline Jet2 upgraded its profit target for the second time in just three months on Thursday, saying it had seen “encouraging” summer bookings.

But shares, which originally rose earlier in the morning, closed down 0.4%.

The biggest risers on the FTSE 100 were Segro, up 27.4p to 799.2p, Haleon, up 9.95p to 353.55p, Beazley, up 14.5p to 593p, Smith & Nephew, up 23p to 1,246p, and Croda International, up 128p to 7,018p.

The biggest fallers on the FTSE 100 were DS Smith, down 8.6p to 317.7p, Antofagasta, down 40.5p to 1,574p, Smurfit Kappa, down 74p to 2,968p, Mondi, down 28p to 1,281p, and Persimmon, down 24p to 1,249p.