FTSE 100 Soars to Record High Amid Strong Earnings and Strategic Moves

FTSE 100 reached a record high driven by robust earnings from British firms like IAG and IMI. Despite challenges for Morgan Advanced Materials, market sentiment was buoyed by strategic moves such as IAG's share buyback and a weaker pound, while mid-cap index saw a dip.

The UK's FTSE 100 index achieved a record high close on Friday, bolstered by strong corporate earnings, particularly from British Airways owner IAG. Meanwhile, a drop in Morgan Advanced Materials affected the mid-cap index.

The FTSE 100, which includes a high number of exporters, rose 0.6% aided by a depreciating British pound, and ended February up 1.5% after a significant 6% increase in January. IMI, a British engineering company, led gains by rising 6.2% due to an increased dividend and a new share buyback plan.

IAG shares soared 4%, marking a five-year high following a 27% increase in annual operating profit, which surpassed estimates. Concurrently, Weir Group's stocks rose by 6.3%, attributed to a nearly 10% rise in adjusted annual profits and its purchase of mining software provider Micromine for 657 million pounds.

Conversely, the FTSE 250 mid-cap index dropped 0.4%, driven by Morgan Advanced Materials' 16.2% decline after predicting a decrease in organic revenue. The homebuilders' index rose 2.1% as data showed a 0.4% uptick in UK house prices in February.

Rightmove, the largest UK property portal, gained 4.3% post-strong revenue growth projections for 2025. In contrast, other European stocks were pressured after President Trump announced substantial tariffs on Canadian, Mexican, and Chinese goods. However, Wall Street saw a bounce back from recent declines during Friday's volatile trading.

(With inputs from agencies.)