The FTSE 100 Index Closes 0.08% Lower

The FTSE 100 pared early gains to close virtually flat at 10,601 on Friday, but staying near the highest in a month, driven by cautious optimism ahead of weekend US-Iran talks. Deep divisions remain, however, starting with the issue of the Strait of Hormuz, coupled with the inclusion of the Lebanon on the ceasefire agreement. Metals and mining stocks, along with retailers, provided the main support, while the aerospace and defense sector struggled. In equities, Convatec Group led the gains, rising 4.5%, followed by Endeavor Mining and Antofagasta, each rising over 3%. Kingfisher and Burberry Group also advanced solidly, up 2.7% and 2.1%, respectively. On the flip side, Metlen Energy & Metals plunged nearly 9% following weak annual results reported the previous day. Defense names like BAE Systems and Babcock International fell 3.3% and 1.7%, respectively. Compass Group lost 1.9% after a weak update from French rival Sodexo. For the week, the index rose 1.6%.

The FTSE 100 Index dropped -8 points or 0.08 percent on Friday to close at 10595 points. Losses were led by B&M European Value (-5.19%), BAE Systems (-2.80%) and The Sage Group (-2.08%). Offsetting the fall, top gainers were Convatec Group (5.54%), Antofagasta (3.02%) and Endeavour (2.88%).

The FTSE 100 advanced 0.3% to 10,640 Friday afternoon, reaching its highest level since early March and heading for a third straight week of gains. Investors remained cautiously optimistic ahead of US-Iran negotiations this weekend, while also welcoming signs of potential progress in Ukraine-Russia peace talks, which could materialize sooner than expected. US President Trump struck a dual tone, expressing optimism about a possible deal with Iran but later warning Tehran over new fees imposed on ships transiting the Strait of Hormuz. Meanwhile, the Kuwaiti Foreign Ministry accused Iran and its proxies of new drone attacks, with the critical waterway remaining largely blocked. In corporate news, Unite Group rose 0.5% after reaffirming its occupancy and rental growth guidance, though it cautioned that results may come in at the lower end of expectations for the 2026/27 academic year. Conversely, Compass Group fell 1.6% after a weak update from French rival Sodexo.