The FTSE 100 Index: a week in review

October 11, 2021 0 Comments

The FTSE 100 index closed at 7,095.55 last week, showing an increase of 84 points over the past seven days. The rollercoaster five-day trading period came to an end on a positive note despite opening in red mid-week. The index closed with a 1.2% increase amid the inflation frenzy and the negative effects of the US market downfall. Furthermore, mining stocks have been under the radar on account of unpredictable gas prices.

There are some excellent dividend shares to watch out for on this blue-chip company index. But let’s take a closer look at what happened in the UK markets last week.

Oil and pharma stocks save the FTSE 100 over supermarket takeover slump

On Monday, the FTSE 100 index closed higher due to heavyweight oil stocks and a rise in the pharma stock, AstraZeneca. Meanwhile, Morrisons share price dropped over the confirmed news of a takeover.

After the private equity firm Clayton, Dubilier & Rice (CD&R) won the bid for the supermarket chain, shares fell 3.7% in a single day. But the index continued to climb thanks to AstraZeneca receiving a breakthrough therapy designation. Furthermore, the shares of Sainsbury’s rose by approximately 3.7% in anticipation of earning SoftBank’s Fortress Investment’s interest. SoftBank’s Fortress Investment lost the takeover war with CD&R over Morrisons.

Bank stocks pushed the FTSE 100 higher

On Tuesday, the FTSE 100 index closed at 7,077, with a roughly 1% increase during the day. The banking stocks led the market as investors anticipated a hike in interest rates. Barclays and Lloyds rose by approximately 1.7% and 1.63%, respectively. Also, the sportswear and fashion brand JD sports spiked by approx. 3% because of an expected stock split.

Negative investor sentiment saved by the US stock market recovery

On Wednesday, the FTSE 100 index opened in red due to increased investors distress over rising energy prices, inflation threats and concern over the Chinese economy. Investor sentiments have been negatively affected by the inflation pressure in the hometown. Moreover, the skyrocketing natural gas prices along with an increase in world oil prices over the past week made investors rush towards securing their invested capital.

The recovery in the US stock market was positively reflected on the FTSE 100 index the next day. Mining stocks were the highest risers as the increase in precious metal prices brought positivity back into the markets. Anglo American and Fresnillo were the top performers, rising by 2.8% and 1.2%, respectively.

Last trading day of the week

The FTSE 100 index concluded the week with a 0.25% intraday increase. Tesco was the star performer on Friday, with an approximate 11% gain over the week. Due to a better than expected growth in sales of the first half of 2021, the retailer raised its full-year profit guidance which spiked investor interest.

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Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and therefore may differ from the opinions of analysts in The Money Cog Premium services.

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