By Johann M Cherian
(Reuters) -London’s FTSE 100 rose for a seventh straight session on Tuesday, boosted by gains in financials and commodity-linked stocks, while OKYO Pharma tumbled following its plan to delist from UK markets.
OKYO Pharma Ltd fell 14.6% to a ten-month low after the bio-pharmaceutical company said it plans to delist from the London Stock Exchange next month, citing tepid trading volumes and low valuations.
“U.S.-listed stocks have a higher valuation and they could probably get better shareholder value there,” said Michael Hewson, chief market analyst at CMC Markets.
“London has become less attractive because of a corporation tax here and consequently you’re seeing some companies (moving out).”
OKYO’s plans come on the heels of Flutter Entertainment considering an additional listing in the United States, while construction materials firm CRH is planning to move its primary listing to the U.S.
from London.
The blue-chip FTSE 100 edged up 0.1% and the mid-cap FTSE 250 added 0.3%, with investors awaiting fresh catalysts including U.S. labour market data and the earnings season which could set the tone for markets in April.
Boosting the FTSE 100, banks rose 0.4% while industrial metals miners climbed 0.3%.
Both the FTSE indexes ended the first quarter with gains. However, a recent spike in oil prices and signs of weakness in the U.S.
economy and uncertainty about further monetary tightening have weighed on the mood recently.
Rathbones Group Plc advanced 2.3% as the wealth manager said it had agreed to buy the UK wealth business of Investec Plc in an all-share deal valued at 839 million pounds ($1.04 billion).
Shares of Investec climbed 2.9%.
Saga Plc dropped 8.3% after the holiday group noted that its insurance unit — which includes its underwriting arm whose potential sale to Australia’s Open was terminated last month — has been battling high claims inflation.
(Reporting by Johann M Cherian in Bengaluru; Editing by Subhranshu Sahu and Shailesh Kuber)
