FTSE 100 watch: GKN rally props up Footsie

Smiths share price gains ground as group updates on US taxes impact

FTSE 100 watch: GKN rally props up Footsie

The UK benchmark index has advanced in London this Friday, finding support in a hefty rise in GKN (LON:GKN), whose shares have been in demand as the company rejected a takeover approach from Melrose Industries (LON:MEL). Smiths Group (LON:SMIN) is also one of today’s most notable FTSE 100 risers after updating investors on the impact from the tax reform on the other side of the Atlantic.

FTSE 100 continues uptrend

As of 12:16 GMT, the Footsie had added 16.41 points to stand 0.21 percent higher at 7,779.35, continuing a week of record gains.

“The grind higher continues for FTSE 100, with no sign that the sellers can assert control for any meaningful length of time,” Chris Beauchamp, market analyst at IG, commented in a note, adding that the potential areas of short-term support were marked at 7,732 points and then 7,705 points.

Blue-chip risers

In the absence of major macroeconomic announcements, investors have instead focused on corporate news. GKN is lending support to the blue-chip index after reporting that it had rebuffed an ‘opportunistic’ takeover approach by Melrose. The company further announced that it was planning to separate its aerospace and automotive businesses. GKN’s shares are changing hands 29.25 percent higher at 430.00p.

Smiths Group has been another prominent FTSE 100 riser after saying that the net impact of the new US tax legislation on the company will be favourable over the medium term. Smiths’ share price is 4.66 percent up at 1,640.50p.

Marks & Spencer (LON:MKS) is also recovering following yesterday’s results-prompted sell-off and currently stands 2.22 percent higher at 307.90p.

The FTSE 100 was 0.21 percent up at 7,779.01 points as of 12:41 GMT on Friday, January 12, 2018.

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