FTSE 100 hits record high amid rising BP shares
- The FTSE 100 index surged by 67.27 points, reaching a record close at 8,767.80.
- Key stocks, including BP and Prudential, led the gains in the market.
- The overall market resilience indicates a positive sentiment despite global economic concerns.
On Wednesday, February 12, 2025, London's FTSE 100 stock index experienced strong trading, buoyed by gains in commodity and housing stocks. Investors were mostly optimistic despite global concerns regarding potential impacts of tariffs introduced by US President Donald Trump. The index saw a significant rise partly due to BP's shares, which surged after news that Elliott Investment Management had acquired a stake in the company, driving up BP's stock price by 7.4% on the day. Other notable companies like Prudential also saw their values increase as the market remained resilient to external worries. Despite apprehensions about US tariffs on steel and aluminium and their implications for inflation, the FTSE 100 finished 67.27 points higher at 8,767.80. Analysts noted that the markets showed a capacity to rebound from previous concerns that had rattled investors two weeks prior. This was evidenced by a general rise in values among leading firms, suggesting a stronger market confidence. Additionally, the price of Brent crude oil rose slightly, indicating positive sentiment around resource shares. While the US markets experienced slight declines due to higher-than-expected inflation figures, the corresponding dip in the value of the pound against the dollar was expected to favor UK exporters. As UK stocks fluctuated alongside other global indices, domestic firms bolstered their performances supporting a notable rise in several stock values. The news of BP's share increase and other notable gains like those from Prudential played a crucial role in reassuring the equity markets. In the midst of all this, there were reports affecting some individual stocks; for example, Drax received positive indicators from the UK Government about continued subsidies, resulting in a rise of 3.8% in their shares. However, the same day saw warnings issues from Close Brothers, with their shares dropping due to a forecast of potential cost provisions tied to a scandal. Overall, trading continued to be driven by the fluctuations within the largest stock entities while broader economic concerns simmered under the surface, keeping investors alert for further developments.