UK's FTSE 100 logs strongest week in six months on defensive-sector rally
UK's FTSE 100 logs strongest week in six months on defensive-sector rally Updates to markets close
Oct 16 (Reuters) - Britain's blue-chip stocks had their best week in six months, as investors flocking to defensive sectors offset a rout in AI-linked stocks, while finance minister John Healey's reassurances on fiscal discipline also helped risk appetite.
The export-heavy FTSE 100 .FTSE closed 0.38% higher at 10,881.90 points, logging a weekly gain of 3.1%, the biggest since early April, while the midcap FTSE 250 .FTMC gained 0.45%.
UK's large-cap ETFs attracted $3.38 billion in estimated net inflows year to date, already the biggest annual total since 2020, data from Morningstar showed
"Flows into passive funds typically follow performance, but they also reflect investors looking to diversify away from US mega-cap technology and broaden their equity exposure," said Michael Born, an analyst at Morningstar
Consumer staples supported gains. Cigarette maker British American Tobacco BATS.L rose 2.1%, while Johnnie Walker owner Diageo DGE.L gained 1.9%
The beverages .FTNMX451010 and medical equipment and services .FTNMX201020 sectors advanced 7.8% and 6.9%, respectively, in the week
Homebuilders .FTNMX402020 jumped over 6% in the week after Healey reaffirmed his commitment to fiscal discipline on Thursday
Banks .FTNMX301010 were muted on Friday, recovering from early losses triggered by a report that Healey was likely to tax the lenders in the budget
Bank of England Governor Andrew Bailey said signs of second-round inflation were limited ahead of next week's inflation data
Traders are pricing in four BoE rate hikes over the next 12 months, according to LSEG data
Defence stocks .FTNMX502010 extended a strong run on the day: BAE Systems BAES.L and Babcock International BAB.L rose 2.6% and 3.6%, respectively
THG THG.L had its best week in six months, surging 30% after the e-commerce firm raised its annual adjusted core profit forecast on Thursday
(Reporting by Darshan Kumar in Bengaluru; Editing by Sahal Muhammed)