UK Stocks Rise on Defense Spending Hopes; Bunzl Profits Drop

UK stocks rise with FTSE 100 near record highs, led by defense stocks. However, Bunzl Plc's profits decline, affecting its share prices negatively.

Date: 03-03-2025

AI Rating: 5

Market Performance Overview
The UK stock market shows a modest increase, with the FTSE 100 at record highs due to gains in defense shares, indicating positive investor sentiment regarding government spending in defense.

Company Specific Performance
BAE Systems saw a significant gain of 14%, while Rolls-Royce Holdings increased by 5.5%. Other companies like IMI and Anglo American also reported gains of up to 4%, reflecting a strong market reaction to the anticipated increase in defense budgets.

Bunzl Plc's Performance
Conversely, Bunzl Plc experienced a notable decline in its stock price by nearly 7% due to disappointing fiscal results for 2024. The company reported a statutory pre-tax profit of 673.6 million pounds, down 3.6% from the previous year, and a reduced earnings per share (EPS) of 148.7 pence compared to 156.0 pence a year prior. The adjusted pre-tax profit did see a marginal increase to 872.9 million pounds from 853.7 million pounds, highlighting a slight positive trend but insufficient to counter the overall negative outlook.

Indicators Affecting Investor Sentiment
The report indicated weakness in the UK manufacturing sector with a PMI drop, reflecting further concerns over economic strength, which could impact overall investor sentiment and spending.

Stocks: BAE RR BNZL