FTSE Continues Constructive Consolidation -

FTSE Continues Constructive Consolidation

Mar 27, 2024Jeremy ParkinsonFinance, No picture0

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The FTSE 100 index in Britain experienced a mixed trading day on Wednesday. Initially, it opened slightly lower, primarily due to declines in energy and bank stocks. However, losses were limited by positive news regarding DS Smith shares, which surged after the paper and packaging firm confirmed it was in discussions with International Paper for a deal. As the trading day progressed, the FTSE 100 managed to recover some ground and was marginally higher by the close of the session, up 0.16%. The energy industry saw a 0.9% decline due to a second consecutive drop in oil prices following a report indicating a rise in U.S. crude stockpiles. Additionally, bank stocks also underperformed, lagging behind by 0.8%.DS Smith’s stock reaches a more than 2-year high as it engages in discussions with International Paper for a $7.22 billion all-stock offer. The British paper and packaging company’s shares are up 7.9% at 338.1p, marking its highest value since January 21, 2022. If the proposed deal goes through, DS Smith shareholders will hold approximately 33.8% of the combined company. This offer from International Paper represents a 48% premium to DS Smith’s closing price on February 7, the day before Mondi announced its preliminary bid. Prior to this development, DS Smith’s stock has risen by nearly 30% since February 7, making it the second top gainer on the FTSE 100 index.Diploma Plc, a provider of technical products and services, saw its shares surge by 11% to a record high of 3,840p following the announcement of its acquisition of specialty fastener distributor, Peerless Aerospace Fastener, for 236 million pounds ($297.88 million). This acquisition is expected to immediately boost earnings and drive an 8% increase in earnings per share over the first year of ownership. Jefferies expressed the opinion that Diploma has potential for further mergers and acquisitions. The company’s shares have risen by 6.6% year-to-date, including movements in the current session, and it is the top percentage gainer on the FTSE 100 index.
FTSE Bias: Bullish Above Bearish below 7800