Today in the UK stock market: Mining stocks rebound, pushing the FTSE 100 to a new high; unexpected by-election results cause the pound to weaken

Investing.com - The UK stock market rose to another all-time high on Friday, mainly supported by gains in mining stocks, while European markets showed mixed performance. The pound was pressured after the Green Party won in a by-election.

After the Green Party’s victory in the Gotton and Denton by-elections, the pound came under pressure. Gotton and Denton are constituencies in Manchester, long considered strongholds of the Labour Party.

As of 11:56 GMT, the blue-chip FTSE 100 rose 0.4% to 10,887.88 points, having touched 10,900 earlier in the session, while GBP/USD fell 0.1% to 1.3473.

Germany’s DAX index increased by 0.08%, and France’s CAC 40 index declined by 0.1%.

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Wizz Air Holdings’ stock fell after an investment fund managed by Indigo Partners LLC sold 10 million ordinary shares of the budget airline through accelerated bookbuilding.

The stock declined after the secondary offering, with Indigo Hungary LP and Indigo Maple Hill, L.P. selling shares at 1,250 pence per share, raising approximately £125 million.

Senior PLC (LON:SNR) shares rose after the aerospace and automotive parts manufacturer disclosed multiple takeover proposals.

The company confirmed that, following board discussions, it received two higher cash offers from potential acquirers. Senior PLC also announced it would delay its planned share buyback program.

Melrose Industries PLC (LON:MRON) fell sharply despite reporting full-year profits above expectations and achieving positive free cash flow for the first time in two years. However, its 2026 profit guidance was below analyst forecasts.

This FTSE-listed company, which manufactures engine structures and fuselage components for aircraft such as the F-35 and Airbus A320, saw its stock hit multi-month lows. It expects adjusted operating profit for 2026 to be between £700 million and £750 million.

Hays’ stock declined in London trading after the recruitment firm reported first-half profits that met market expectations.

Adjusted EBITA fell 25% year-over-year to £20 million (per peer comparison), in line with Jefferies’ consensus estimate of £20 million. Adjusted EPS dropped 43% to 0.46 pence, below the forecast of 0.53 pence.

Rathbones Group Plc announced on Friday a 4.6% increase in underlying profit for 2025 and expanded its share buyback plan to up to £20 million, pushing the stock up over 5%. The UK wealth manager said the cost synergies from the acquisition of Investec Wealth & Investment exceeded targets.

Pre-tax profit rose from £227.6 million last year to £238.1 million, above the consensus estimate of £235.5 million. Statutory pre-tax profit increased 53.5% to £152.9 million, aided by lower integration costs, down from £75.5 million in 2024 to £39.9 million.

Rightmove Plc (LON:RMV) announced a £90 million share buyback after reporting full-year revenue growth of 9%, in line with analyst expectations, which helped the stock rise over 5%. Since November, the stock has been heavily sold off.

The London-listed company said that revenue for the year ending December 31, 2025, increased from £389.9 million to £425.1 million, matching the company’s compiled consensus of just over £213.3 million for the second half.

Pearson Plc’s stock remained flat after the UK education company’s full-year results met expectations. Despite efforts to position itself as a beneficiary of AI-driven skills training demand, market reaction was muted.

Just Group reported a decline in annual profits on Friday, weighed down by weaker new business profit margins and sluggish retirement income sales. Full-year underlying operating profit fell 39% to £305 million, below last year’s £504 million. Adjusted pre-tax profit dropped from £482 million to £120 million.

International Airlines Group reported full-year profits exceeding expectations, driven by lower fuel costs and strong demand on transatlantic routes, especially in premium cabins. The parent of British Airways saw adjusted operating profit rise 3.5% to €5.02 billion, surpassing the €4.97 billion forecast from LSEG surveys. Revenue increased 3.5% year-over-year to €33.21 billion, above the €32.1 billion in 2024.

UBS maintained a neutral stance on UK stocks, citing limited fundamental improvement despite a strong start to 2026, according to Chief Investment Officer Matthew Gilman in a report. UK equities benefit from sector rotation into capital-intensive companies, partly due to investor concerns over AI disruption.

UBS expects around 5% earnings growth in 2026 and 15% in 2027. The firm noted that recent rises in oil and copper prices could lead to earlier-than-expected profit improvements, though faster growth in 2026 might slow down in 2027.

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