UK stocks end up on earnings bump; Haleon, Howden shine

UK's FTSE 100 closed higher on Thursday underpinned by a positive batch of earnings from the likes of Haleon and Howden, setting the main index up for monthly gains, but a jump in Drax did little to offset monthly losses on the mid-cap index. Haleon gained 5.6% after the Sensodyne toothpaste maker announced a share buyback plan given firm demand for its products and progress in reducing debt.

UK's FTSE 100 closed higher on Thursday underpinned by a positive batch of earnings from the likes of Haleon and Howden, setting the main index up for monthly gains, but a jump in Drax did little to offset monthly losses on the mid-cap index.

Haleon gained 5.6% after the Sensodyne toothpaste maker announced a share buyback plan given firm demand for its products and progress in reducing debt. "The solid outlook combined with a reducing base of shares and falling interest expense should help to accelerate earnings per share growth in 2024," said Derren Nathan, head of equity research at Hargreaves Lansdown.

The FTSE 100 index closed up 0.1%, ending the second month in the year with a 0.2% gain. The exporter-heavy index however, underperformed Europe's STOXX 600 that hit a record high earlier in the month and notched a 1.9% gain in February. Top gainer on the FTSE 100 was Howden Joinery with a 7.0% surge after the kitchens products supplier said it saw "encouraging" revenue growth in 2024.

The more domestically exposed FTSE 250 closed up 0.2% with Drax Group, the UK's largest source of renewable electricity, jumping 11.2% after posting a 66% jump in annual profit and raising its dividend. The mid-cap index underperformed the large-cap FTSE index in February, down 1.2% as worries of domestic slowing growth and uncertainty about the timeline for interest rate cuts hurt risk appetite.

Bucking the broader trend, International Consolidated Airlines dropped 3.6% as concerns over costs, supplies of new jets, and geopolitical risks the British Airways owner's overshadowed strong 2023 results. London Stock Exchange Group dipped 0.4% after reporting preliminary full-year income largely in line with estimates.

Among others, Man Group rose 1.0% after posting a 17% rise in assets under management, while Ocado gained 4.2% after the online supermarket and technology group said it would make a profit at the pretax level in about five or six years.

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