London's stock markets experienced a subdued session on Monday, the first trading day after the Christmas break, with the FTSE 100 index closing marginally lower while a major takeover deal boosted the FTSE 250.
Market Movers and Takeover News
The headline event was a significant acquisition in the financial services sector. International Personal Finance (IPF) saw its shares surge by 5.9% after agreeing to a £543 million all-cash takeover by BasePoint Capital. The deal, expected to complete in the third quarter of 2026, offers shareholders 235 pence per share, a premium of approximately 31% to the share price in late July.
IPF's board unanimously recommended the offer. Chairman Stuart Sinclair stated that while the board believed in the company's standalone prospects, the acquisition allowed shareholders to "monetise their entire investment for cash at a fair price."
Index Performance and Global Context
Against this backdrop, the FTSE 100 index closed down 4.15 points at 9,866.53. The more domestically-focused FTSE 250 index ended the day 93.01 points higher, a gain of 0.4%, finishing at 22,407.51. The AIM All-Share index was virtually flat, down just 0.09 points.
In European markets, both the French CAC 40 and the German DAX 40 edged up by 0.1%. In New York, stocks were weaker, with the Dow Jones, S&P 500, and Nasdaq Composite all losing ground.
The trading week is shortened by the New Year holiday, with markets closing early on Wednesday and remaining shut on Thursday.
Commodities, Currencies, and Corporate Shake-ups
In the currency markets, the pound was quoted at $1.3491 at the London close, slightly softer than its level the previous Wednesday. The euro also dipped against the dollar.
Commodity prices were mixed. Brent crude oil traded at $61.48 a barrel, down from last week but up from its Friday close in New York. Gold fell sharply to $4,336.60 an ounce, retreating from the record high above $4,549 it hit on Friday.
Elsewhere on the corporate front, cinema chain Everyman Media Group saw its shares close flat after chief executive Alex Scrimgeour stepped down with immediate effect. His departure follows a recent profit warning and the resignation of the finance director. Analysts at AJ Bell noted the share price had fallen 76% during his tenure and that "time had run out."
The biggest risers on the FTSE 100 were: Fresnillo, Glencore, Convatec, Anglo American, and Entain. The biggest fallers were: Babcock International, Hiscox, British American Tobacco, BT Group, and Halma.
Looking ahead, market attention this week turns to the minutes from the US Federal Reserve's December meeting and a series of global manufacturing surveys due on Friday.
