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On June 6, British stocks edged up on the day with a 0.25% increase in the FTSE 100 and a 0.3% rise in the FTSE 250. This was driven by the European Central Bank rate cut, and was further supported by gains from mining company Antofagasta. Antofagasta has surged after signing a $1.5 billion investment deal to enhance water supply at its Chilean mining operations. The London-listed shares of the Chilean miner jumped 2.4%, making it the top gainer on the FTSE 100 index. The deal aims to establish a water transportation system that will provide non-desalinated seawater for the company’s Centinela mining operations. Additionally, Centinela operations are also set to receive $600 million in 2024 from a consortium owned by Madrid-based Almar Water Solutions and Chile-based power transmission company Transelec. As of the last close, the stock is up 27.1% year-to-date.Mitie Group, a UK outsourcing firm, has seen a 2.8% increase in its shares making it one of the top gainers on the FTSE midcap index. The company reported a 30% rise in FY EBITDA to 210 million pounds, surpassing its guidance of 200 million pounds. Additionally, it posted an 11% growth in FY revenue, reaching 4.51 billion pounds. Mitie Group remains on track to meet high single-digit revenue growth expectations for the year and its medium-term targets. The company also increased its FY dividend by 38% to 4.0p per share. Despite the strong performance in FY24, consensus EBITA forecasts are expected to remain unchanged due to sales/IT investment and mobilisation costs. Analysts believe that the shares should re-rate as the margin rises further towards the FY27 target of 5% and as the company continues to deploy capital in M&A and share buybacks. The stock is currently up approximately 21% year-to-date.Wood Group experienced a significant increase and is open to discussing a takeover proposal with Sidara. In early trading, Wood Group’s shares rose by 9.5% to 203.8p, making it the top percentage gainer on the FTSE mid cap index. After the market closed on Wednesday, the company decided to engage in discussions with Sidara regarding an improved takeover offer and allow access to due diligence materials. As of the last close, the company’s shares have increased by 8% year-to-date.S4 Capital, a UK advertising group, has experienced a 3.6% decrease in its shares, which are currently trading at 50p. The company has reported a slowdown in demand from some of its major technology services clients, which is attributed to the volatile global macroeconomic conditions. Despite this, S4 Capital has maintained its targets for the fiscal year. Following this decline, S4 Capital’s shares have reached their lowest levels since May 10, and overall, they are down 5% year-to-date.Royal Mail’s parent company, International Distributions Services PLC, is being shorted by a New York hedge fund. This may be a bet on the potential collapse of the postal service group’s £3.6 billion takeover by Czech billionaire Daniel Kretinsky. Sessa Capital initially opened a 0.73% net short position with IDS last Friday, shortly after the board recommended the offer. This week, the investment group increased its position to 0.83%, with analysts describing the move as “bold” and “intriguing”.
FTSE Bias: Bullish Above Bearish below 8365

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