27th May 2026 12:20
(Alliance News) - Stock prices in London were higher at midday on Wednesday, as investors took a more optimistic view on progress in peace talks between the US and Iran.
The FTSE 100 index was up 15.67 points, 0.2%, at 10,507.06. The FTSE 250 was up 185.35 points, 0.8%, at 23,512.84, and the AIM all-share was up 4.55 points, 0.6%, at 817.01.
The Cboe UK 100 was up 0.1% at 1,045.32, the Cboe UK 250 was up 0.5% at 20,352.33, and the Cboe small companies was up 0.2% at 18,839.29.
In European equities on Wednesday, the CAC 40 in Paris was up 0.9%, while the DAX 40 in Frankfurt was 0.7% higher.
Sterling was at USD1.3444 at midday on Wednesday, little changed from USD1.3443 at the London equities close on Tuesday. Against the euro, sterling eased to EUR1.1543 from EUR1.1567.
The euro was higher at USD1.1639 from USD1.1622. Against the yen, the dollar was marginally higher at JPY159.37 versus JPY159.33.
The FTSE 100 started the day in the red, before strengthening through the morning.
"The FTSE 100 started Wednesday on the back foot as a weak showing for energy and defensive stocks outweighed a continuing push higher for stocks in line to benefit from any peace deal between the US and Iran," said AJ Bell analyst Russ Mould.
"This meant the FTSE 100 meaningfully underperformed European and Asian markets which continued to rise on hopes for an end to the conflict in the Middle East."
Mould said investors will hope a "real breakthrough" can be achieved in peace talks between the US and Iran this week, but market patience could "wear thin" if negotiations fail.
Brent oil was trading lower at USD97.19 a barrel at midday on Wednesday from USD100.18 on Tuesday.
AJ Bell's Russ Mould added: "Even if an agreement is reached, it will take time to get energy infrastructure fully back online and shipments flowing through the Strait of Hormuz at anywhere near pre-war levels."
Iran's intelligence ministry said that the goal of the US and Israel remained to overthrow the Islamic republic and break up the country.
"The enemy is now pursuing through other means the objective of overthrowing and partitioning the country, which it openly declared at the beginning of the recent war but failed to achieve through military attack," the ministry said in a statement carried by Iranian media.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.4%, the S&P 500 index 0.3% higher, and the Nasdaq Composite up 0.5%.
The yield on the US 10-year Treasury was quoted at 4.47% on Wednesday, narrowed from 4.51% on Tuesday. The yield on the US 30-year Treasury slimmed to 5.01% from 5.03%.
Back in London, shares in Pets at Home climbed 6.2%.
The pet supply store and veterinary practice operator reported lower earnings, in line with previous guidance, but said it is making progress in stabilising its Retail business under its new chief executive officer.
Pretax profit was GBP86.5 million in the 12 months that ended March 26, down 28% from GBP120.6 million the year prior, as revenue edged down 0.8% to GBP1.47 billion from GBP1.48 billion.
It cut its annual dividend by 43% to 7.4p from 13.0p, and plans a further GBP50 million share buyback programme during financial 2027.
"Material progress has been made over the past six months stabilising the Retail business, delivering improved satisfaction and better availability," Chief Executive Officer James Bailey said.
AJ Bell analyst Russ Mould said: "Britons famously love their pets but in tough times, it’s no surprise nice-to-have items are on the back burner. The company is cutting costs and slashing prices in an effort to revive its retail fortunes and there was at least a return to growth for this part of the business in the second half of the year and a robust start to the current financial year."
Shares in HICL Infrastructure climbed 3.5% after it posted a portfolio return ahead of expectations.
As of March 31, the company's net asset value per share was 160.2 pence, improved from 153.1p a year earlier. After the payment of the fourth-quarter dividend, NAV per share was 158.1p, versus 151.0p on-year.
The company paid dividends of 8.35p per share in financial 2026, in line with guidance and ahead of 8.25p the year prior. It plans to raise this to 8.50p in financial 2027 and 8.65p the following year.
From the 2028 annual general meeting, the company's board intends to propose a continuation vote, which will be triggered if its shares trade at an average discount to NAV per share of more than 10% over the prior financial year.
Chair Mike Bane's term is approaching nine years in mid-2027, and HICL Infrastructure on Wednesday said the search for its next chair is underway.
On the AIM market, Hardide shares jumped 20%.
The Bicester, England-based surface treatment technology firm received a GBP2.4 million order from its "large North American energy sector customer" to cover the remainder of the client's requirements to the end of the financial year in September.
"This will have the effect of materially improving revenue and overall financial performance expectations for [financial 2026]," Hardide said.
Shares in Nanoco sank 51% as it said it plans to delist from the London Main Market after failing to find a buyer for its trading business.
"The board believes that by taking further measures to reduce the company's operating costs and carefully investing its remaining resources in existing high-potential business areas, greater value can be generated for shareholders," the nanomaterials developer said.
Nanoco said this cancellation will save around GBP700,000 a year. The firm said it is not experiencing any financial difficulty, nor does it expect to in the near term.
"Conversely, were these cost savings to not be achieved, and were there further delays in the commercialisation of the company's products, the group's ability to break even in the medium term and achieve its strategic objectives would be further hindered by the current cost and resource burden associated with being a listed company," it added.
Gold was lower at USD4,448.70 an ounce at midday on Wednesday, down from USD4,504.21 late Tuesday.
Still to come on Wednesday's economic calendar is US ADP employment change data and the Richmond Fed manufacturing index.
By Michael Hennessey, Alliance News reporter
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Related Shares:
Pets at homeHICL InfrastructureHardideNanoco