16th Mar 2026 11:57
(Alliance News) - Stock prices in London were mixed on Monday, while the FTSE 100 was supported by energy stocks as investors continued to watch developments in the Middle East, particularly the Strait of Hormuz.
The FTSE 100 index was up 50.72 points, 0.5%, at 10,311.87. The FTSE 250 was down 13.11 points, 0.1%, at 22,057.99, and the AIM all-share was down 2.62 points, 0.4%, at 756.75.
The Cboe UK 100 was up 0.5% at 1,023.78, the Cboe UK 250 was down 0.2% at 19,283.97, and the Cboe small companies was 0.2% lower at 17,557.75.
In European equities on Monday, the CAC 40 in Paris was marginally higher, while the DAX 40 in Frankfurt was up 0.2%.
Sterling was at USD1.3280 at midday on Monday, up from USD1.3233 at the London equities close on Friday. The euro was higher at USD1.1483 from USD1.1437. Against the yen, the dollar was lower at JPY159.12 versus JPY159.58.
"The FTSE 100 ticked higher at the start of the week as its material weighting towards energy continued to offer some ballast during the Iran conflict," said AJ Bell analyst Russ Mould.
"Defensive names, including in the utility sector, property stocks and housebuilders were among the fallers in London while BP and Shell, as well as a smattering of industrial stocks, were among the gainers."
Shares in Shell and BP were up 1.2% and 0.6% respectively. Both stocks hit 12-month highs on Monday.
Mould added: "Until we get some signs of a meaningful resolution to the situation in the Gulf, the markets are likely to remain choppy."
Brent oil was trading higher at USD103.44 a barrel on at midday on Monday from USD101.57 on Friday.
UK Prime Minister Keir Starmer said he is working with allies on a plan to reopen the Strait of Hormuz.
He said the UK was working with countries, including European allies, on a "viable plan" to ease the crisis.
He said: "We're working with all of our allies, including our European partners, to bring together a viable collective plan that can restore freedom of navigation in the region as quickly as possible and ease the economic impacts."
Meanwhile, expectations of future finances among UK consumers worsened in March as labour market optimism weakened amid the first signs of the war in Iran having an impact, data published by S&P Global showed.
The S&P Global UK consumer sentiment index fell to a 14-month low of 44.1 points in March from 44.8 in February. Falling further away from the neutral 50-point mark separating growth from contraction, it indicates the pace of deterioration in consumer sentiment accelerated in March.
Notably, the future index for expected finances in 12 months' time deteriorated to a 27-month low of 43.9 points in March from 46.1 in February.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.6%, the S&P 500 index 0.8% higher, and the Nasdaq Composite up 0.9%.
The yield on the US 10-year Treasury slimmed to 4.25% at midday on Monday from 4.29% at Friday's close. The yield on the US 30-year Treasury narrowed to 4.88% from 4.91%.
Back in London, Haleon shares climbed 2.8%, after the firm started a GBP500 million share buyback programme late last week.
Ratings changes were also in focus on Monday. Morgan Stanley raised property developer Segro and consumer goods firm Reckitt Benckiser to 'overweight'.
Shares in Segro were up 3.0%, and led the FTSE 100, while Reckitt was 2.3% higher.
On the FTSE 250, Hammerson shares were up 3.7% after Morgan Stanley raised its rating on the stock to 'overweight' with a price target of 400 pence.
Partners Group Private Equity shares were 2.3% lower after it reported a decreased portfolio value, noting that its exposure to the software industry "remains deliberately underweight".
The Guernsey-based private equity investor, which is managed by Swiss investment firm Partners Group Holding, said its net asset value decreased 2.4% on-month to EUR867.4 million, or EUR12.69 per share, as of January 31.
Noting "recent volatility across the sector", the firm said it maintains a conservative allocation of less than 10% to software.
As for the "sharp escalation" this month in the Middle East, PGPE said its portfolio "has negligible exposure to the region". Its investment manager "does not expect the situation to have a material direct impact on the portfolio at this stage," but "will continue to monitor developments closely."
CRH shares were up 0.4% as it said it intends to delist from the London Stock Exchange, meaning its shares will be solely listed on the New York Stock Exchange.
The Dublin-based building materials provider last month announced a review of its listing and capital structure last month. The New York Stock Exchange which has been its primary listing since September 2023. It had cancelled its London primary listing back then, relinquishing its status on the FTSE 100.
CRH expects the last day of trading on the London Stock Exchange to be April 17, with the delisting to become effective on April 20.
It also proposed the cancellation of its two classed of preference share, the 7% preference shares listed in London and the 5% preference shares listed in Dublin, valued at a total value of approximately EUR1.2 million.
Among small caps, Kendrick Resources shares jumped 35% after it said assays from a drill hole at the Bonya rare earth project, Namibia have "significantly exceeded expectations".
It reported drill intercepts over "notable mineralised widths" and at grades that place the Bonya carbonatite complexes "amongst the best rare earths projects worldwide".
"The results are extremely impressive and as good a start as the company could wish for. What is particularly encouraging is the correlation between surface work and actual drill results since there is much channel sampling and trenching that we are able to use to target our future drilling," said Chair Colin Bird.
On the AIM market, System1 shares climbed 18% after it said it expects to report record revenue for the second half of the financial year to the end of March 2026, with its performance for the full year in line with guidance.
It said the "strong level of new business wins" throughout the year provide a positive outlook for the 2027 financial year.
The company said it remains comfortable with consensus revenue forecasts for financial 2027.
System1 now expects adjusted earnings before interest, tax, depreciation and amortisation to be "materially ahead" of current market forecasts in financial 2027, with a margin of at least 15% with the opportunity for further margin expansion as revenue scales.
"The step up in new business wins, together with the completion of our investment phase and the benefits of cost optimisation activities, are now driving clearer commercial momentum and revenue growth, including double-digit growth in Innovation sales, deepening our customer engagement and strategic relevance," said Chief Executive Officer James Gregory.
Gold was lower at USD5,011.10 an ounce at midday on Monday from USD5,043.40 late Friday.
Still to come on Monday's economic calendar is US industrial production data and a consumer price index reading for Canada.
By Michael Hennessey, Alliance News reporter
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Related Shares:
BPShellHaleonSegroReckittHammersonPartners Grp ECRHKendrick ResourcesSystem1 Group