London's FTSE 100 index touched a fresh high on Wednesday, driven by strong corporate results while investors fled technology and semiconductor stocks during a global sell-off. The blue-chip index rose to 10,951 points in morning trading, its highest level since 27 February, the day before US and Israeli attacks on Iran sparked market volatility.
The FTSE 100 closed up 0.3% at 10,908, marginally below its record closing value of 10,910 set in February. The index is heavily weighted towards finance and energy sectors, shielding it from the tech slump that has hit markets in Asia and New York. Standard Chartered and Rio Tinto both announced higher shareholder payouts on Wednesday.
Meanwhile, shares in AI-linked companies plunged for a second day on concerns about spending on the technology, sending South Korea's Kospi and Japan's Nikkei lower. The Kospi closed down 6% after falling almost 11% the previous day, reaching its lowest level since early April and marking a nearly 40% decline from its peak a month ago. Trading was halted for 20 minutes after an 8% plunge triggered a circuit breaker.
Chipmaker SK Hynix reported record second-quarter profits but undershot investor expectations, prompting its shares to fall by as much as 20% before closing 10% lower. Samsung Electronics also tumbled 5%. The two firms account for more than half of the Kospi's market capitalisation. Analysts said the disappointment highlighted concerns about how long tech companies can sustain their AI spending spree.
Oil prices climbed after the US military said it had intercepted an Iranian missile barrage and struck sites in Iraq used by Tehran-backed militias. Brent crude rose above $90 a barrel, up more than 7%. In the US, Apple benefited from the sell-off as investors sought a safe haven, briefly reaching a valuation above $5tn. Taiwan's TSMC fell 3% in Taipei.
Russ Mould, investment director at broker AJ Bell, said the FTSE 100 was helped by its lack of exposure to technology and AI stocks, along with strong results from index heavyweights Standard Chartered, Reckitt Benckiser and Rio Tinto. South Korea's finance minister said the government was reviewing market stabilisation measures.
