MT Newswires -Shutterstock
London’s FTSE 100 ended 0.26% lower on Monday as investors assessed developments alongside fresh economic data pointing to continued weakness in the UK construction sector.
Ocado (OCDO.L) fell 0.05% after the online grocery technology group said Chief Executive Officer Tim Steiner will remain in the role through the start of the 2028 financial year, when its succession planning process is expected to conclude. “We think this provides an orderly resolution to the reported boardroom struggles over the last couple of months and enables Ocado to find the right candidate,” Bernstein said.
In the FTSE 250, EasyJet (EZJ.L) jumped 9.28% after agreeing to the key financial terms of a takeover proposal priced at 6.90 pounds sterling per share from alternative investment firm Castlelake. This is Castlelake’s fifth proposal, up from the previous 6.50 pounds per share.
“We view the acquirer’s status as a major player in the aircraft leasing business, but not a traditional private equity firm, as likely indicating a future break-up of the company and separation of its valuable assets: fleet, orders, slots, and Holidays business. While this differs from public statements thus far, if this is indeed the plan, it indicates further supply tightness in intra-European aviation,” Bernstein said in another note.
British media company ITV (ITV.L) agreed to sell its media and entertainment business to Comcast-backed Sky in a deal worth 1.6 billion pounds sterling. The mid-cap constituent rose 0.06% in the closing trade.
On the economic front, the UK’s construction sector remained in contraction in June. The S&P Global UK Construction PMI edged up to 38.4 from 38.2 in May but stayed well below the 50 threshold separating expansion from contraction and missed the consensus estimate of 40.1.
“June data indicated a recovery in business activity expectations across the construction sector since May, although confidence levels remain well short of historic trends. A number of survey respondents suggested recent new contract awards and an expected improvement in broader market conditions had underpinned optimism,” S&P Global Market Intelligence Economics Director Tim Moore said.
Meanwhile, new car registrations in the UK climbed 11.4% year over year to 213,166 units in June, according to data from the Society of Motor Manufacturers and Traders.
