The FTSE 100 Index Closes 0.16% Lower

The FTSE 100 Index dropped 18 points or 0.16 percent on Friday to close at 10879 points. Losses were led by IG Group Holdings (-8.56%), Melrose (-4.25%) and Experian (-3.21%). Offsetting the fall, top gainers were Natwest (4.53%), Centrica (2.11%) and BAE Systems (2.02%).

The FTSE 100 edged lower on Friday due to weakness in heavyweight consumer goods, healthcare, and banking stocks. Unilever dropped more than 2%, while AstraZeneca and GSK each declined around 0.5%. Major lenders HSBC Holdings and Lloyds Banking also fell. IAG fell more than 1% after reporting second-quarter revenue below expectations, reflecting the impact of ongoing disruption from the Middle East conflict on air travel. In contrast, NatWest surged more than 4% after raising its full-year guidance and indicating it could launch additional share buybacks. Sainsbury's gained around 2% after announcing the sale of its Argos business. Energy stocks also advanced, with BP and Shell rising between 1.3% and 1.8% as oil prices extended their sharp monthly rally of more than 20%. Despite Friday's decline, the FTSE 100 finished the week up more than 1% and posted a monthly gain of roughly 3.5%, its strongest performance since February.

The FTSE 100 climbed more than 0.5% on Friday to a fresh record high near 10,970, putting the index on track for a weekly gain of around 2.2% and a monthly advance of roughly 4.5%, its strongest performance since February. Investors continued to monitor weaker oil prices and renewed volatility in semiconductor stocks. NatWest jumped nearly 4% after raising its full-year guidance and announcing plans for a share buyback alongside its 2026 annual results. J Sainsbury gained more than 3% after agreeing to sell its Argos business to Swift Partners for at least £120 million. On the downside, Pearson fell almost 4% despite reaffirming its outlook, while IG Group dropped over 5% after announcing a deal worth up to $1.3 billion to acquire US sports prediction platform Underdog. IAG lost around 1.6% after missing revenue estimates and warning of higher fuel costs and prolonged Middle East route suspensions.