The FTSE 100 Index Closes 0.32% Lower

The FTSE 100 Index decreased 35 points or 0.32 percent on Monday to close at 10867 points. The decline was led by Imperial Brands (-5.28%), Coca-Cola (-4.40%) and British American Tobacco (-4.05%). On the upside, the strongest performers were Fresnillo (3.25%), Metlen Energy & Metals (2.52%) and Glencore (2.21%).

The FTSE 100 fell on Monday as weakness in several heavyweight stocks outweighed gains in energy and mining shares. Imperial Brands dropped more than 5% following reports that the tobacco company is preparing to cut thousands of jobs across key markets, including the US and Europe. British American Tobacco also fell more than 4%, while HSBC, Unilever and GSK declined between 0.4% and 1.8%. In contrast, oil majors Shell and BP gained 0.7% and 1.5%, respectively, as crude prices extended their recent advance amid uncertainty over a potential US-Iran agreement to end the conflict and reopen the Strait of Hormuz. Mining stocks also benefited from stronger metals prices, with Fresnillo rising 3.3% and Glencore gaining 2.2%. Elsewhere, Plus500's trading update showed stronger first-half growth driven by higher trading income. Pharos Energy confirmed it would not increase its offer, while Vistry reduced coverage for the housebuilder’s suppliers.

The FTSE 100 traded flat to slightly lower on Monday as investors awaited further developments in the Middle East and assessed mixed signals from the US and Iran over the prospects of reopening the Strait of Hormuz. Market activity was subdued, with gains in technology stocks offset by weakness among major defensive names. BAT, Unilever and Diageo all declined, weighing on the index, while a modest rise in oil prices provided some support to energy-related stocks. More broadly, Plus500 was among the stronger performers after its latest trading update showed first-half growth driven by higher trading income. Pharos Energy was one of the biggest fallers after confirming it would not increase its offer for the oil and gas company, while Vistry declined following reports that its insurer was reducing coverage for the housebuilder’s suppliers.