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The UK’s benchmark FTSE 100 index opened higher on Thursday, buoyed by a rise in energy shares, while Britain’s largest supermarket chain Tesco climbed after raising its annual profit forecast. The blue-chip FTSE 100 index is trading with a modest gain of 0.3%. Shares of major oil and gas companies increased by 0.6%, continuing their upward trend for the fifth consecutive day, as crude oil prices rose due to the potential for an escalating conflict in the Middle East, which could disrupt supply from the key oil-exporting region.UK housebuilders’ shares rise 1.4% after Bank of England Governor Andrew Bailey suggests the central bank could cut interest rates more aggressively if inflation continues to improve. Bailey notes the possibility of the BoE becoming “a bit more activist” in lowering rates, but warns that Middle East conflicts could push up oil prices. Lower BoE rates lead to reduced mortgage rates, boosting housing demand. Persimmon is the top gainer in the sector and FTSE 100 indexes, up around 3%, while Barratt, Vistry, and Taylor Wimpey gain between 1% and 1.7%.Tesco’s shares rose 1.6% to 361 pence. The company expects full-year retail adjusted operating profit of around £2.9 billion, up from the previous forecast of at least £2.8 billion. Tesco reported H1 retail adjusted operating profit of £1.56 billion, up from £1.42 billion a year earlier. CEO Ken Murphy said the significant investments in value, quality, and service have delivered volume growth ahead of expectations in H1. Jefferies said Tesco’s ability to generate free cash flow and deliver consistent income is still underappreciated, setting it apart in the consumer sector, and the current 8.1% free cash yield shouldn’t limit its continued strong performance. Tesco’s stock is up 22.2% year-to-date.Shares of British Land, a UK property company, declined by 1.3%. The company placed 69.5 million shares at 422 pence per share, a discount of 3.6% to the previous closing price, to raise equity. Additionally, British Land acquired a portfolio of seven retail parks from Brookfield Asset Management for 441 million pounds ($580.5 million). Prior to the closing price, the stock had risen approximately 10% so far this year. More By This Author:FTSE Supported By Oil Majors As Mid-East Tensions Escalate
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