FTSE 100 watch: Footsie rises as political concerns recede

DS Smith shares in demand after Europac deal

FTSE 100 watch: Footsie rises as political concerns recede

The UK benchmark index has gained ground in today’s session, with investor sentiment improving as political worries over the situation in Italy and Spain took a back seat to corporate developments. DS Smith (LON:SMDS) has been one of the most prominent FTSE 100 performers after announcing a deal to buy Spain’s Europac.

FTSE 100 gains ground

As of 12:12 BST, the Footsie had added 55.18 points to stand 0.72 percent higher at 7,756.95. The blue-chip index has started the week on the front foot, amid receding worries over Italy and Spain which weighed on sentiment last week.

“A solid defence of 7,600 last week helped the FTSE 100 to recover from its first meaningful pullback in weeks,” Chris Beauchamp, market analyst at IG, commented in a note, adding that the next major targets came in at 7,800 points, and then the all-time high of 7,903, while a move back below 7,600 points would “suggest that a more bearish view is developing”.

Individual blue-chip risers

In individual stock news, investors have reacted positively to DS Smith’s announcement that it has inked a deal to buy for €1.9 billion (£1.66 billion). The blue-chip packaging group’s shares are currently changing hands 2.75 percent higher at 577.87p.

National Grid (LON:NG) has been another prominent Footsie riser as Credit Suisse lifted its price target on the stock, while maintaining its ‘hold’ rating on the shares. WebFG News quoted the analysts as pointing to the group’s asset growth, greater clarity for returns and improvements to its balance sheet. National Grid’s share price is 2.41 percent better off at 848.40p.

The FTSE 100 index was 0.71 percent up at 7,756.27 points as of 12:47 BST on Monday, 04 June 2018.

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