FTSE 100 Snaps 3-Day Drop; Home Retail Soars on Sainsbury Offerby
U.K. stocks rose to interrupt a three-day slump in its first week in the New Year, led by gains in miners and Home Retail Group Plc.
The FTSE 100 Index added 0.7 percent to 6,137.24 at the close in London, bringing its 2016 drop so far to 1.7 percent.
Home Retail surged 41 percent after J Sainsbury Plc said it was considering making an offer for the company in a deal that would combine two of the U.K.’s largest retailers. The announcement sent Sainsbury down 5.5 percent. Tesco Plc added 1.5 percent after Deutsche Bank AG raised its rating on shares to buy. Glencore Plc, Rio Tinto Group and Anglo American Plc added at least 1.9 percent.
Next Plc slumped 4.6 percent after posting full-price sales in the fourth quarter that missed analysts’ estimates by a wide margin.
The broader FTSE All Share-Index rose 0.7 percent today, following its worst yearly decline since 2011. Ireland’s ISEQ Index rose 0.5 percent, after jumping 30 percent in 2015.