UK stocks boosted by industrials and financials

The blue-chip FTSE 100 ended 0.2 per cent higher, while the midcap FTSE 250 gained 0.3 per cent

UK stocks rose on Thursday, boosted by gains in industrials and financials shares.

The blue-chip FTSE 100 ended 0.2 per cent higher, while the midcap FTSE 250 gained 0.3 per cent.

Aerospace and defence shares gained for a third straight session, up 2.5 per cent, after Russia-Ukraine peace talks stalled. Rolls-Royce and BAE Systems added nearly 2.6 per cent each.

The investment banks and brokerages sector increased 2.2 per cent. Investment firm 3i Group rose 5.1 per cent, to top the FTSE 100 index.

Personal goods advanced 2.8 per cent with Burberry adding 3 per cent after HSBC raised the price target on the stock.

On the flip side, beverages declined 2.9 per cent, with Diageo dropping 3.9 per cent after UBS downgraded the stock and cut the target price.

Pharma stocks shed around 1 per cent. AstraZeneca slipped 1.3 per cent.

SSP Group added 11.3 per cent after the airport outlet operator said it expects annual profit at the top end of its forecasts.

AJ Bell dropped 7.6 per cent after the investment platform warned of added costs and said the budget would add complexity to the individual savings account landscape.

Frasers shed 2.7 per cent after the sportswear and fashion retailer reported a 2.8 per cent decline in first-half profit.

Meanwhile, a survey showed British construction activity contracted last month at the fastest pace since May 2020.

Other surveys showed similar concerns about investment, hiring and demand in the lead-up to finance minister Rachel Reeves’ annual budget on November 26.

British investors sold equities worth £3 billion in November, marking the sixth straight month of net selling, according to data from funds network Calastone.