Financial Planning

FTSE 100 moves higher as GKN soars

Financial Planning
Published: 12 January 2018

A sharp jump in engineering group GKN helped the FTSE 100 (INDEXFTSE:UKX) maintain its record highs this morning.

The blue chip share index rose at 0.19%, up 15 points at 7,778.24 by 10.52 GMT.

GKN (LON:GKN) shares soared 25% after the engineering group rejected an unsolicited £7bn cash and stock merger offer from rival Melrose Industries. The company said the offer undervalued its business and would not benefit its shareholders. Under UK takeover rules, Melrose will need to make a firm offer for GKN by the 9th of February. Melrose (LON:MRO) shares have risen 5.5% this morning.

Shares in Smiths Group (LON:SMIN) rose 4.3% as the engineering firm said that the reforms to US corporate income tax would benefit the company over the medium term.

Packaging and paper firm Mondi (LON:MNDI) shares were up 1.8% on an upgrade from Investec.

In the mid-caps, housebuilder Bovis (LON:BVS) shares gained 1.0% as the company reaffirmed its profit expectations for 2017 and that it was beginning the year with an “excellent” forward sales position.

Food and drink concessions operator SSP Group (LON:SSPG) shares rose 3.9% as JPMorgan upgraded the stock from Neutral to Overweight.

On the currency markets, sterling rose 0.59% against the dollar to $1.3620 and fell 0.07% against the euro to €1.1232.