VT Markets APP

Trade CFDs on FX, Gold and more


FTSE 100 Hits Record High on Anglo American Buyout

April 25, 2024

Britain’s FTSE 100 stock index saw notable activity with miner Anglo American (AAL) surging 12.5% to a nine-month high following a buyout offer from BHP Group.

A chart showing FTSE 100's most recent upswing due to a buyout offer from BHP Group for Anglo American AAL.

SEE: FTSE 100 sees upswing today on the VT Markets trading app

BHP proposed acquiring Anglo American in a deal valued at 31.1 billion pounds ($38.91 billion), aiming to establish the world’s largest copper miner. This acquisition would position BHP with approximately 10% of the global copper output. Despite this positive development for Anglo American, BHP’s UK-listed stock experienced a decrease of 2.7%.

Fiona Cincotta, a senior market analyst at City Index, commented on the strategic benefits of the deal, noting BHP’s enhanced access to significant copper and iron ore resources, critical for future growth.

Perhaps echoing this sentiment, this perspective helped catalyse the rise in Anglo American’s share price, reflecting market optimism about the long-term benefits of the merger.

The broader market responded positively, with the FTSE 350 industrial metal miners index climbing by 1.7%. The blue-chip FTSE 100 itself rose by 0.6% to 8,083.90, reaching a peak of 8,098.14 at one point. Cincotta highlighted the composition of the FTSE 100, noting its fewer tech stocks compared to U.S. indices and the advantageous impact of a weaker pound on the UK index.

Influence of Other Markets and Economic Signals

In contrast, other European markets experienced declines, and Wall Street was anticipated to face challenges following a negative outlook from social media giant Meta Platforms. These broader market movements underline the interconnectedness of global financial markets and the influence of multinational corporate forecasts on investor sentiment.

Earnings Driving Index Growth

Several blue-chip firms reported earnings that exceeded market expectations. AstraZeneca’s shares increased by 5.1% after announcing quarterly revenue and profits that surpassed estimates. Similarly, Unilever enjoyed a 4.8% rise after posting better-than-expected sales growth for the first quarter. Barclays also saw a 4.5% increase in its shares, despite reporting a drop in first-quarter profits, suggesting that investor expectations had been set even lower.

The mid-cap FTSE 250 index, however, did not mirror the gains of the FTSE 100, dropping by 0.2%. This decline was partly due to WH Smith, which fell by 7% after indicating a slowdown in growth at the beginning of the second half of the year, particularly in its airport retail operations.

Start trading today. Click here to open a live account.