Skip to content

FTSE 100 at the close: Mondi, abdrn, Endeavour Mining

FTSE 100 at the close: Mondi, abdrn, Endeavour Mining

By Patrick Munnelly, Market Strategist, Tickmill

On Monday, the UK’s FTSE 100 experienced  early gains, reaching its highest levels in over a week.

The rise was primarily driven by the energy sector, as top oil exporter Saudi Arabia made a commitment to reduce oil supplies.

This announcement led to a 1.2% surge in energy stocks and propelled the resource-heavy FTSE 100 to its highest level since May 24.

However, the bullish sentiment and risk appetite faded as the London close approached with the index ending the day down 7 points at 7599.99.

FTSE 100 biggest movers

Miners were weighing the index as metals remain under pressure, Endeavour Mining [LON:EDV] sat at the bottom of the index, nursing losses of just over 3.7%, with Fresnillo LON:FRES near the bottom, down 1.5% on the session.

In single stock news Mondi LON:MNDI has decided to cancel a deal with an investment vehicle owned by Russian billionaire Viktor Kharitonin for its largest plant in Russia due to a “lack of progress” in obtaining the required approvals.

Following this announcement, shares in the paper and packaging company declined by over 2.4%.

The deal, valued at approximately 95 billion Russian rubles (equivalent to around £944 million), will not proceed as initially anticipated.

On the positive side of the ledger, shares of investment company abrdn LON:ABDN saw a notable increase, rising as much as 4.3% to 212.3 pence before closing up 3.19%.

The company emerged as the top percentage gainers on the UK’s blue-chip index.

This positive movement came after abrdn announced the initiation of a share repurchase program, valued at up to £150 million ($185.90 million).

The program will be carried out by J.P. Morgan Securities Plc, which will purchase up to 300.1 million ordinary shares of abrdn between June 5 and September 5.

Despite the stock receiving mixed ratings from brokerages, with two rating it as “buy,” three as “hold,” and eleven as “sell” or lower, the median price target stands at 190 pence.

UK service sector maintains growth

On the fundamental front, the UK’s service sector maintained its strength in May, with growth remaining close to the 12-month peak reached in April.

According to the seasonally adjusted S&P Global/CIPS UK Services PMI, the index recorded a reading of 55.2 in May.

This was slightly lower than April’s figure of 55.9 but still above the neutral 50.0 mark for the fourth consecutive month.

Survey respondents highlighted resilient customer demand and expressed cautious optimism about the near-term growth prospects, despite the challenges posed by elevated inflation and budget constraints.

Increased output in the service sector was often attributed to higher consumer spending on services such as tourism and leisure.

Additionally, there were numerous reports indicating a surge in demand for technology-related services.

Podcast: Everything you need to know about the FTSE 100 Index

Subscribe to our podcast on your favourite platform

Don’t miss out on our weekly podcast. You can find us on SpotifySoundcloudAmazonAppleYouTube and many other popular platforms

Share this article

Invest with these platforms

Hargreaves Lansdown

IG

Interactive Brokers

Interactive Investor

Charles Stanley

IG

Interactive Brokers

Charles Stanley

Looking for great investing ideas? Get our free newsletter.
Join our UK news channel on WhatsApp

This article does not constitute investment advice.  Do your own research or consult a professional advisor.

Learn with our free 'How to' Guides

Our latest in-depth company reports

On the podcast

Sign up for great investing stock tips

Thanks to our Site Partners

Our partners are established, regulated businesses and we are grateful for their support.

Aquis
CME Group
FP Markets
Pepperstone
Schroders

TMX
WisdomTree
ARK
FxPro
CMC Markets
Back To Top