FTSE Hits Record High as AI Chip Stocks Extend Sell-Off

The FTSE 100 surged to a fresh all-time high yesterday, shrugging off a bruising technology-led sell-off that weighed heavily on stock markets around the globe.

London’s blue-chip index rose as much as 0.7 per cent, adding 80 points to touch an intraday peak of 10,951 and surpassing the previous high reached in February.

Some momentum faded before the close, but the index still ended 0.3 per cent higher, up 37.39 points at 10,908.41, leaving it just below its record closing level set earlier this year.

The move underlined a striking recovery for the FTSE 100, which had slipped beneath 10,000 in March after Donald Trump launched his war on Iran, but is now once again pressing close to the 11,000 milestone.

Its resilience stood out against a far gloomier backdrop overseas, with South Korea’s Kospi suffering the steepest blow, dropping 6 per cent yesterday after an 11 per cent slide on Tuesday.

The Korean benchmark is heavily influenced by technology heavyweights Samsung and SK Hynix, both of which have come under intense selling pressure.

On Wall Street, leading chipmakers including Nvidia, AMD and Micron also fell sharply, helping pull the main US stock indices into the red.

London, which has missed out on high-value technology listings in recent years, benefited as it was insulated from the rout.

It was also boosted by a clutch of positive earnings from the likes of engineering firm Weir, whose shares were up 8.7 per cent, or 220p, to 2744p, software group Sage – ahead 8.8 per cent, or 82.2p, at 1022p – and consumer goods giant Reckitt, which rose 4.3 per cent, or 224p, to 5400p.

At the same, time a rebound in the price of oil, which has climbed to more than $90 a barrel driven by the latest upheavals in the Middle East, lifted the UK-listed energy giants.

BP climbed 3.4 per cent, or 17.8p, to 543.5p, while Shell rose 2.8 per cent, or 89p, to 3323.5p.

Susannah Streeter, chief investment strategist at Wealth Club, said: ‘The Footsie has lost a little momentum after hitting a fresh intraday high but is hanging on to gains despite fresh geopolitical tensions and market turbulence elsewhere.

‘The index appears to have found its mojo once again, with investors drawn in by its defensive qualities in a volatile world.

‘There has been a surge of interest in London-listed blue-chips after a raft of positive corporate results, amid an ongoing rotation away from volatile technology companies.

‘Investors are gravitating back towards companies with tangible cash flows, reliable dividends and established pricing power, qualities the FTSE 100 has in abundance.

‘Having been on the back foot for so long, the index is still considered to be largely undervalued, trading at a sizeable discount to US equities on earnings multiples, and if more shine comes off the biggest tech stars, it’s well placed to benefit from a swing towards more stability.’

The rally to a new record high was a rare bright spot for the London market, which has been badly hit by an exodus of constituents being taken over by foreign predators on the cheap.

Many blame the weak valuations attached to FTSE companies compared to those achieved on other stock markets for making them vulnerable to overseas bidders.

So far this year, five FTSE 100 companies have already backed takeover approaches, with energy group DCC the latest to do so this week after it received a £5.75billion offer from a private equity consortium.

Laboratory testing firm Intertek, Lloyd’s of London insurer Beazley, City institution Schroders and warehouse and data centre giant Segro have also been picked off.