Mining stocks also rallied today after the price of gold set another record high.
FTSE 100 Live Wednesday
GSK lifts sales outlook
Car registrations down last month
SSE renewables output up 26%
Market update: GSK guidance boosts shares, Grainger up 4% in FTSE 250
10:09 , Graeme Evans
GSK dominated a steady FTSE 100 index today after the drugs giant’s long-term guidance helped to revitalise shares following their dismal showing in 2024.
The blue-chip rallied 5% or 76.5p to 1456.5p as investors also cheered plans for an increased 2025 dividend and a £2 billion buyback of shares.
Total 2024 sales in today’s annual results were 3% higher at £31.4 billion, or 7% at constant exchange rates. That included a 19% rise in sales of speciality medicines, 13% for HIV treatments and 98% for oncology drugs.
Vaccine sales dropped by 4% for the year, reflecting a sharp drop for its Arexvy lung disease treatment.
GSK is looking for 2025 turnover growth at constant exchange rates of between 3% and 5%, with core operating profit growth in the range of 6% to 8%.
The shares, which were 1800p in May before dipping to below 1300p in the middle of January, are valued at 2100p by Shore Capital.
The City firm said: “Vaccine-related downgrades last year have clearly been a source of disappointment, but these alone do not warrant the depth of discount relative to peers.”
The easing of trade war fears helped the FTSE 100 index to steady 6.87 points below its opening mark at 8563.90, with GSK joined on the risers board by several mining stocks.
Mexico’s Fresnillo rallied 4% or 25.5p to 739p as geopolitical uncertainty helped the price of gold to set a fresh high above $2870 an ounce. Endeavour Mining also lifted 21p to 1686p.
Vodafone recovered some of the ground lost after yesterday’s results-day reverse as shares lifted 2% or 1.2p to 66.3p.
On the fallers board, thermal engineering firm Spirax dropped 3% or 230p to 7710p after HSBC cut its target price to 8200p.
The FTSE 250 index fell 0.3% or 55.99 points to 20,597.27, with gold-focused Hochschild Mining 3% or 5.6p higher at 185p.
Grainger, the UK's largest listed provider of private rental homes with a 3.4 billion operational portfolio, led the mid-cap benchmark after reporting 15% growth in total net rental income for the four months to the end of January.
The promise of significant earnings growth in the medium term also helped shares to lift 4% or 8p to 217p, having fallen from 269p in May.
Grainger said: “The fundamentals of the UK residential rental market remain exceptionally supportive, as demand continues to grow and rental supply continues to be constrained as small, private landlords face increasing headwinds.”
The decline was driven by a 15.3% drop in deliveries of petrol cars. There was a 41.6% spike in the uptake of pure battery electric cars, resulting in a market share of 21.3%.
SMMT said January's figures show EV demand is growing – but not fast enough to deliver on current ambitions.
It added: Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers."
Miners drive robust FTSE 100, Future shares higher on US progress
09:09 , Graeme Evans
GSK’s 6% results-day share price advance is the standout performance in an otherwise subdued FTSE 100 index.
Miner Fresnillo is the next best stock, lifting 3% or 21.5p to 735p after the price of gold set a new record. Endeavour Mining lifted 15p to 1680p.
Vodafone steadied after yesterday’s heavy fall as shares rallied 0.9p to 66p, placing it ahead of BT Group after an advance of 0.9p to 142.75p.
On the fallers board, thermal engineering firm Spirax dropped 205p to 7735p after HSBC cut its target price to 8200p.
The FTSE 250 index reversed 0.3% or 55.93 points to 20,597.33, with Raspberry Pi surrendering some of its recent strength through a decline of 27p to 717.5p.
Publisher Future lifted 18.5p to 954p after reiterating full-year guidance on the back of a continued improvement in US digital advertising.
It added: “Magazines have remained more resilient, led by premium titles, whilst the UK advertising market continues to be challenging.
“After a standout 2024 financial year, performance of Go.Compare has moderated, reflecting the expected slow-down in the car insurance switching market.”
GSK shares rally on new long-term guidance
08:19 , Graeme Evans
GSK shares have risen 6% or 89p to 1469p after the drugs giant improved its long-term sales guidance alongside 2024 annual results.
The company also forecast an improved dividend for 2025 and said it planned to buy back £2 billion of its shares in the next 18 months.
Today’s share price compares with May’s level near 1800p.
Richard Hunter, head of markets at Interactive Investor, said: “Despite the warm reaction to the numbers in opening trade, it seems that a cure for all GSK’s ills may yet be a touch too early to call, with the market consensus of the shares as a hold likely to remain intact for the time being.”
Gold price hits fresh high, FTSE 100 opens flat
08:06 , Graeme Evans
Gold today rose another 0.8% to trade above $2850 per ounce for the first time.
The increase comes as investors continue to hedge against geopolitical risks, particularly on fears over the impact of a US-China trade war.
The price is up by more than 8% in the past month, adding to the record levels seen during 2024.
The FTSE 100 index has opened 3.65 points lower at 8567.12.
Weather slows SSE renewables output growth
07:56
Energy giant SSE today reported a 26% rise in renewables generation for the first nine months of its financial year to 31 December.
This compares with the 45% increase reported in November’s half-year results, when the company’s output benefited from a period of favourable weather conditions as well as additional capacity.
SSE said the variable weather conditions of the third quarter continued in January.
The company expects earnings per share for the 2024/25 year of between 154p and 163p a share, which compares with 158.5p for the previous year.
SSE continues to target a figure for 2026/27 of between 175p and 200p.
The company’s operations include onshore and offshore wind farms, hydro, electricity transmission and distribution networks.
Finance chief Barry O'Regan said: "We are pleased to report good operational performance during the quarter and, more recently, we were able to provide a swift and effective response to Storm Eowyn, with our teams expertly managing widespread network disruption.”
GSK today increased its 2031 sales outlook to more than £40 billion, up from £38 billion amid stronger progress in its late-stage drugs pipeline.
Total 2024 sales in GSK’s annual results published today were £31.4 billion, a rise of 3%. This improves to 7% at constant exchange rates.
Core operating profit rose 11% without currency fluctuations, although the total fell 40% to £4 billion when including a one-off charge of £1.8 billion relating to the settlement of Zantac litigation.
GSK sees 2025 turnover growth at constant exchange rates of between 3% to 5%, with core operating profit growth of between 6% to 8%.
It declared a dividend of 16p for the fourth quarter and expects to increase the total for 2025 to 64p a share from 61p last year. A £2 billion share buyback programme is set to be implemented over the next 18 months.
Chief executive Emma Walmsley said: "GSK delivered another year of excellent performance in 2024, with strong sales and core profit growth driven by accelerating momentum of our specialty medicines portfolio.
“This, together with outstanding phase III pipeline progress, means we expect another year of profitable growth in 2025, and have further improved our long-term outlook, with sales of more than £40 billion now expected by 2031.
“In particular, we are increasing and prioritising R&D investment to promising new long-acting and specialty medicines in Respiratory, Immunology & Inflammation, Oncology and HIV.”
FTSE 100 seen down, China stocks lower after Lunar New Year
07:03 , Graeme Evans
US markets posted a stronger session last night as tech stocks including Apple rose despite fears over the impact of a US-China trade war.
The Nasdaq Composite recovered the previous session’s losses by lifting 1.4%, while the S&P 500 added 0.7% and the Dow Jones Industrial Average rose 0.3%.
The Shanghai Composite is 0.7% lower after China markets reopened following the Lunar New Year holiday. The Hang Seng index has dropped 1.2%.
