London close: Stocks mixed in quiet post-Christmas trade

(Sharecast News) - London markets closed on a mixed note Friday in subdued trading, as the ongoing holiday period kept activity light with little news to influence sentiment. The FTSE 100 index rose 0.16% to end at 8,149.78 points, while the FTSE 250 index slipped 0.4% to 20,488.65.

In currency markets, sterling was last up 0.34% on both the dollar and the euro, to trade at $1.2567 and €1.2060, respectively.

"For the FTSE 100 it's been yet another year of underperformance, barely eking out a gain in 2023, at least this year we've seen the UK benchmark index break above the 8,000 level and achieve a new record high in the first half of the year," said CMC Markets chief market analyst Michael Hewson, reflecting on the year on Friday.

"The performance since that record high has been symptomatic of the FTSE 100 over the years, a brief pop to new highs and then the rally fizzles out and the index slips back into a range again.

"On the plus side, since the new record highs, we haven't seen the index move below the 8,000 level with any dips being bought into."

Hewson noted that London's top-flight index had still been left behind by its peers the DAX, S&P 500 and the Nikkei 225, adding that "it should be once again reiterated" that the FTSE was not a total return index in the way that the DAX is.

"On a total return basis, the FTSE 100 has done much better keeping track with the DAX, nonetheless it can't disguise the fact that the UK stock market appears to be suffering from a significant lack of enthusiasm on the part of global investors, especially when you look at its performance relative to its peers."

More UK retailers in 'critical financial distress', industrial profits fall more slowly in China

In local economic news, the number of UK retailers in "critical financial distress" surged by over 25% in the final quarter of the year, according to a fresh report on Friday.

Restructuring firm Begbies Traynor reported 2,124 struggling retailers between October and mid-December, up from 1,696 in the preceding quarter.

The rise was attributed to weak consumer confidence and escalating costs, although the figure was slightly below the 2,142 reported at the close of 2023.

"This year has highlighted the resilience and adaptability of some UK retailers, but the sector remains under significant strain," said Julie Palmer, a partner at Begbies Traynor.

"Clearly, some retailers have found ways to manage financial pressures effectively, but others, particularly in general retail, are struggling under the weight of rising operational costs and squeezed consumer spending."

Elsewhere, China's industrial profits fell 7.3% year-on-year in November, marking an improvement from October's 10% decline, according to the National Bureau of Statistics.

Analysts linked the narrower drop to initial effects of government stimulus, which also slowed the producer price index's contraction.

Despite that, profits for the year remain on track for their steepest decline since at least 2000, with persistent challenges from weak domestic demand, a sluggish property market, and international trade risks.

From January to November, industrial profits contracted by 4.7%, deepening from a 4.3% decline through October.

Policymakers had responded with aggressive fiscal and monetary measures, including record special treasury bonds and increased direct fiscal support for households.

Meanwhile, in Tokyo, core consumer prices rose 2.4% year-on-year in December, slightly below expectations but up from November's 2.2% increase.

The rise, driven by higher utility bills and food prices, reinforced speculation that the Bank of Japan might consider raising short-term interest rates.

However, signs of economic weakness, such as a 2.3% drop in November factory output, were tempering expectations.

Centrica rises on share buyback expansion, Raspberry Pi in the green

On London's equity markers, Centrica edged up 1.63% after announcing the launch of a £300m extension to its share buyback programme, which was expected to conclude by September 2025.

Elsewhere, shares of microcomputer maker Raspberry Pi Holdings surged 6.35%.

Life sciences investor Syncona gained 0.58% after its portfolio company, Achilles Therapeutics, announced the sale of technology assets to AstraZeneca for $12m (£9.58m).

The deal would see the transfer of commercial rights and data from Achilles' TRACERx non-small cell lung cancer study, signaling a key monetisation step for Syncona's investment.

Outside of the main market, Gemfields Group saw an 8.13% rise on AIM following an update on the unrest in Mozambique affecting its Montepuez Ruby Mining venture, in which it holds a 75% stake.

The company reported further incidents of violence and looting tied to political instability, including two fatalities among individuals attempting to breach its facilities.

Operations, suspended since 24 December, were reportedly gradually resuming with heightened security measures.

Reporting by Josh White for Sharecast.com.