FTSE 100 movers: BAE surges on Trump’s defence spending plans; Shell drops.


London’s FTSE 100 was down 0.1% at 10,035.63 in afternoon trade on Thursday.

BAE Systems Typhoon alongside Spitfire

Source: Sharecast

Associated British Foods tumbled as it cut its profit outlook due to weaker performances at its Primark retail chain and US foods operations in the 16 weeks to 3 January.

The conglomerate said Primark’s sales growth in the period was below previous expectations and it now expected sales growth in the first half of 2026 to be in the low single digits.

"We now expect group adjusted operating profit and adjusted EPS to be below last year," AB Foods said.

Tesco slumped as it said full-year earnings were expected to be at the top end of forecasts but reported a slowdown in underlying sales growth over the key Christmas selling season. Sainsbury’s, which is due to update the market on Friday, also fell.

Energy major Shell gushed lower as it said it expected to post a loss in its chemicals and products division in the fourth quarter, but left guidance for the rest of the business largely unchanged.

BAE Systems surged to the top of the index, while Rolls-Royce also gained after Donald Trump said US defence spending should be boosted to $1.5tn in 2027 - a 50% increase from this year’s budget - in "these very troubled and dangerous times". This followed his capture over the weekend of Venezuelan leader Nicolas Maduro.

Marks & Spencer rose as it left its full-year guidance unchanged after what it called "solid" Christmas trading. The high street bellwether saw like-for-like food sales rise 5.6% in the 13 weeks to 27 December, to £2.72bn

That helped offset a 2.9% decline in fashion, home and beauty, to £1.27bn.

FTSE 100 - Risers

BAE Systems (BA.) 2,033.00p 5.56%
Coca-Cola HBC AG (CDI) (CCH) 3,870.00p 4.26%
Marks & Spencer Group (MKS) 337.60p 2.77%
Aviva (AV.) 690.40p 1.68%
NATWEST GROUP (NWG) 640.80p 1.33%
Phoenix Group Holdings (PHNX) 741.50p 1.23%
Rolls-Royce Holdings (RR.) 1,274.00p 1.19%
Legal & General Group (LGEN) 265.00p 1.15%
Standard Chartered (STAN) 1,810.00p 1.12%
LondonMetric Property (LMP) 197.90p 0.97%

FTSE 100 - Fallers

Associated British Foods (ABF) 1,845.50p -14.20%
Tesco (TSCO) 423.50p -6.43%
Mondi (MNDI) 881.00p -3.78%
Sainsbury (J) (SBRY) 325.40p -3.33%
Kingfisher (KGF) 319.80p -3.00%
Ashtead Group (AHT) 5,312.00p -2.96%
Barratt Redrow (BTRW) 373.70p -2.94%
Croda International (CRDA) 2,647.00p -2.90%
Shell (SHEL) 2,587.00p -2.58%
3i Group (III) 3,100.00p -2.55%

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