London stocks muted in run-up to budget

Losses in the mid-cap index were led by Hipgnosis, falling 9.6% to a hit a record low after steep declines in its asset valuations led the UK music investor to freeze dividend payments for the "foreseeable future. Losses on the FTSE 250, however, were limited by a 2.8% gain in Senior after the aerospace engineer raised its dividend on Monday as 2023 profits nearly doubled.

UK shares edged lower at the open on Monday as investors exercised caution ahead of the domestic budget this week, although gains in heavyweight oil firm BP capped further declines. The blue-chip FTSE 100 index was down 0.1%, as of 0819 GMT.

While signs of easing inflation have kept investor sentiment afloat, the focus will turn to Finance Minister Jeremy Hunt's presentation of the pre-election budget on Wednesday for cues on potential tax cuts and the economic condition. Automobiles and personal goods led sectoral declines, down more than 1.4% each.

BP advanced 1.2% after Jefferies upgraded the oil heavyweight to "buy" from "hold", with the oil and gas index rising 0.3%. Meanwhile, the FTSE 250 was off 0.2%. Losses in the mid-cap index were led by Hipgnosis, falling 9.6% to a hit a record low after steep declines in its asset valuations led the UK music investor to freeze dividend payments for the "foreseeable future.

Losses on the FTSE 250, however, were limited by a 2.8% gain in Senior after the aerospace engineer raised its dividend on Monday as 2023 profits nearly doubled.