UK Stocks Climb After GDP Report; 3i Group Retreats
London's FTSE 100 closed 0.36% higher on Thursday as earnings from corporate heavyweights poured in, while the latest gross domestic product data surprised to the upside.The British economy expanded 0.3% month over month in March, following a revised 0.4% growth in February, the Office for National Statistics said. Analysts expected a 0.2% decline during the month."The UK economy's strong start to the year was probably part truth, part statistical illusion," Berenberg said. "Nonetheless, that gain alongside the pickup in surveys of economic activity suggest that the economy regained some momentum before the Iran war."In corporate news, Legal & General (LGEN.L) became the top gainer at 6.16% on the index after Chief Executive António Simões told the Financial Times that the financial services group was not engaged in sale talks despite growing market speculation over its future.National Grid (NG.L), up 1.14%, outlined its capital investment plans of 70 billion pounds sterling in five years through fiscal 2031, including 31 billion pounds for UK electricity transmission. The utility's attributable profit for fiscal 2026 rose year over year to 3.24 billion pounds from 2.90 billion pounds."NG reported solid FY25/26 results, in line with consensus. EPS guidance for 26/27 is 13-15%. The group reiterates longer term EPS and asset growth guidance," Barclays noted, raising its price target with a reiterated overweight rating.Meanwhile, 3i Group (III.L) was the worst performer on the blue-chip index, falling 12.76%, after reporting weaker trading at its main investment, Action, citing cautious consumers in France and lower traffic in Germany amid heightened Middle East tensions. The private equity and venture capital company also logged annual growth in profit and gross investment return for the 12 months ended March 31."3i reported FY25 results and gave a trading update on Action which will likely disappoint with deteriorating [like for like], weak France and Germany and margin compression," Bernstein said. "The only sweetener was the announcement of a GBP750m buyback (c. 3% market cap.; higher than the GBP500m expected)."
