MARKET REPORT: Footsie positive for 2022 despite a year of turmoil

The London stock market resumed trading on the front foot – putting it on course to end a turbulent year on the up.

On the first day back following a long weekend, the FTSE 100 rose 0.3 per cent, or 24.18 points, to 7497.19 while the FTSE 250 climbed 0.3 per cent, or 55.42 points, to 18,885.50.

The rally fuelled hopes that the blue-chip index will end the year above the 7384 level it started at, despite 12 months of turmoil.

The same cannot be said of the FTSE 250 however, which remains well below its starting point of 23,480. 

Benchmarks across Europe and the US are also down on the year, with the technology-heavy Nasdaq off some 35pc since the start of 2022.

Investors have endured a roller-coaster year as war in Ukraine, sky-high inflation and rising interest rates hit shares worldwide.

Technology stocks in the US have suffered in particular as higher interest rates cast doubt over their lofty valuations.

The UK has experienced problems of its own on top of that, in a year that saw two monarchs, three prime ministers and four Chancellors of the Exchequer.

The September mini-Budget sent the pound, government bonds and the stock market into free fall – so the recovery in recent weeks will have come as a welcome relief to investors.

Victoria Scholar, at Interactive Investor, said: ‘UK markets have reopened higher, playing catch-up after the FTSE 100 was closed on Tuesday. 

The index could end the year in positive territory despite the broad pressures on global equity markets, weighed down by rising interest rates, inflation, and the threat of recession.

Stock Watch –  Applied Graphene Materials

Applied Graphene Materials’ shares jumped after several bid approaches.

The graphene producer said that the non-binding bids related to its ‘sale of the group’s trade and assets or of the shares in the group’s main operating subsidiary’.

It comes after it last month warned it needed fresh funds to continue operating beyond January 31.

It hopes to receive final offers in early January before choosing one. Shares shot up 20 per cent, or 0.9p, to 5.4p.

‘BAE Systems, Shell and BP are some of the best performing stocks on the FTSE 100 this year, driven by the war in Ukraine.’

BP (up 0.3 per cent, or 1.5p, to 480.4p) and Shell (down 0.7 per cent, or 16.5p, to 2350p) had mixed fortunes having benefited from higher oil prices for much of the year.

BAE Systems rose 1.4 per cent, or 12p to a fresh record high of 867p as it continued to benefit from increased defence spending in the aftermath of Russia’s invasion of Ukraine. The stock has now gained nearly 60 per cent this year, valuing BAE at close to £27billion.

AstraZeneca rose 0.1 per cent, or 12p, to 11,250p after Japanese regulators approved two treatments for use in patients with cancer.

Meanwhile engineering group IMI completed its acquisition of Heatmiser in a deal worth up to £118million. Its shares fell 0.8 per cent, or 10p, to 1309p.

There was good news for Fresnillo which began commissioning work for its Juanicipio mine after completing additional tests required by Mexico’s state-owned power firm. 

The Mexican miner expects the project to reach its full capacity in the second quarter of 2023. Shares rose 2.2 per cent, or 19p, to 891.6p.

But Ferrexpo’s difficult year following the invasion of Ukraine took another turn after its former boss, who is the iron ore miner’s top shareholder, was detained in France.

Kostyantyn Zhevago, who owns a 50 per cent stake, was held on suspicion of embezzlement and money-laundering. It sank 4.9 per cent, or 8.4p, to 164.5p.

James Fisher & Sons has agreed to sell its Swordfish marine services vessel to the India-based company Seamec Limited for around £19.8million.

The group, which provides marine engineering services, will use the money to reduce its debt burden. Shares rose 2.5 per cent, or 9.5p, to 395p.

Over-50s insurance firm Saga rose 6.6 per cent, or 8.3p, to 133.8p after a new investor snapped up a 3 per cent stake. 

Kernow Asset Management Limited is now the tenth-largest shareholder, with 4.24m shares.