In advance of the Bank of England’s (BoE) interest rate announcement, the UK’s FTSE 100 index grew little on Thursday as a drop in the value of the pound lifted shares of companies focused on exports.
As the central bank tackles double-digit inflation, traders are expecting on the BoE to announce a 25 basis point (bp) rate hike at 1100 GMT, raising borrowing costs to their highest level since 2008.
The blue-chip FTSE 100 (.FTSE) increased 0.4% as consumer goods companies like Unilever Plc (ULVR.L) and healthcare stocks (.FTNMX201030) soared as the pound fell. On Wednesday, the currency reached a five-month high.
Mid-cap FTSE 250 (.FTMC), which has a stronger domestic focus, was up 0.2% as of 0718 GMT.
After the broadcaster disclosed a 10% decline in its total ad revenue in the first three months of 2023, ITV Plc (ITV.L) dropped 3.3% and reached a low of almost five months.
As the equities traded ex-dividend, HSBC Holdings Plc (HSBA.L), BP Plc, and Tesco Plc (TSCO.L) were among the other losers, falling between 0.6% and 2%.