London's FTSE 100 index reached a new record high on Wednesday morning, climbing to 10,951 points before easing slightly. The blue-chip index was buoyed by strong corporate results as investors rotated out of technology and semiconductor stocks amid a global AI-driven sell-off.
Corporate Results Lift FTSE
The FTSE 100, heavily weighted toward finance and energy, benefited from gains in Standard Chartered and Rio Tinto, both of which announced increased shareholder payouts. The index has been largely shielded from the tech rout that has rattled markets in Asia and New York.
AI Sell-Off Continues
Shares in AI-related companies fell for a second consecutive day on concerns over spending. South Korea's Kospi index, dominated by chipmakers, closed 6% lower after a 12.6% intraday drop triggered a 20-minute trading halt. Japan's Nikkei fell 1.5% to a two-month low.
SK Hynix, a key AI chip supplier, reported record profits but missed investor expectations, prompting a sell-off that erased as much as 20% of its share value before recovering to a 10% loss. Samsung Electronics also declined 5%.
Oil Prices Climb
Brent crude rose to $89.47 a barrel, up over 6%, after the US military reported striking Iranian-backed militia sites in Iraq and intercepting a missile barrage. The oil price increase added to market volatility.
Apple benefited from the tech sell-off as a safe haven, briefly surpassing a $5 trillion valuation. Meanwhile, Taiwan's TSMC fell 3%.
Analysts noted that retail investors, many using borrowed money, had driven up chip stocks but were now exiting, exacerbating the decline. South Korea's finance minister said the government was reviewing market stabilisation measures.
Russ Mould, investment director at AJ Bell, said the FTSE 100 was "helped by its lack of exposure to technology and AI stocks, and a slew of strong corporate results." He highlighted Standard Chartered, Reckitt Benckiser, and Rio Tinto for delivering better-than-expected profits or bumper cash returns.
