FTSE 100 shares round-up: BT, M&S, Hiscox
UK investors were quick to price in concerns about high bond yields, but not all blue-chip stocks are in the red. Graeme Evans reports on the winners and losers.
22nd May 2025 15:31
by Graeme Evans from interactive investor
A fresh bout of US-inspired volatility today stalled the march of the FTSE 100 index during weaker sessions for housebuilders including Persimmon (LSE:PSN) and Taylor Wimpey (LSE:TW.).
The blue-chip index retreated more than 1% at one stage after a rise in bond yields weighed on Wall Street stocks, with the Dow Jones Industrial Average down 1.9% last night.
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A steadier performance by US stocks at today’s opening bell failed to provide much relief as the FTSE 100 faded from near-record territory following gains in seven of the past nine days.
Among the biggest risers, BT Group (LSE:BT.A) staged a significant turnaround over the course of today’s session to maintain the run that has now lifted shares by 17% this year.
The widely held stock returned near the two-year high seen in April as investors eventually warmed to annual results, including reassuring guidance for the current financial year.
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BT also pledged to accelerate the full fibre broadband rollout programme, having passed the point of peak capital expenditure in the 2024 financial year. By the end of the decade, the capex figure is set to decline by more than £1 billion from the 2025-26 level.
Bank of America, which lifted its price target by 2p to 210p following the results, said: “BT is 12 months away from free cash flow inflection as network build matures and current dividend growth can accelerate. UK consolidation is an upside optionality.”
Favourable broker comment in the wake of yesterday’s annual results also led to a stronger session for Marks & Spencer Group (LSE:MKS), which added 8.2p to 382.9p.
The shares, which topped 410p prior to last month’s cyber-attack, were backed by Barclays with a 445p price target, while Jefferies switched to a Buy stance and 440p estimate.
They drew encouragement from the strength of 2024-25 trading, as well as the optimism of M&S boss Stuart Machin after he described the incident as a bump in the road and said that the retailer will emerge in better shape to continue its resurgence.
Specialist insurer Hiscox Ltd (LSE:HSX) topped the FTSE 100 after its capital markets presentation for investors and analysts included new guidance for a step-up in shareholder returns.
It pledged 20% growth in the dividend alongside 2025 results, with a progressive dividend per share thereafter. It increased the payout by 15% in 2024.
Hiscox said the enhanced return profile reflects the changing shape of the group, with Retail expected to represent a greater proportion as each of its businesses grow over time.
The fallers’ board showed falls for rate-sensitive homebuilding stocks against the backdrop of a rise in the UK’s 10-year gilt yield to the highest level in six weeks.
Persimmon fell 46p to 1320p and Barratt Redrow (LSE:BTRW) dipped 12.9p to 455.8p, while other fallers in the FTSE 100 included BP (LSE:BP.) following a reverse of 7.1p to 355.1p.
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The global spike in bond yields came amid unease over the impact of President Trump’s tax and spending bill, which could widen the US budget deficit by $3 billion over the next decade.
The jitters were reflected in a weak 20-year Treasury auction, which pushed the 30-year yield up 12 basis points to 5.08% and near its highest level since 2023.
Meanwhile, Federal Reserve futures are pricing 48 basis points of interest rate cuts for the rest of the year, lower than previously anticipated.
UBS Global Wealth Global Management: “Market volatility has resurfaced amid renewed uncertainty surrounding trade policy and the fiscal outlook.
“With bond yields elevated and tariff and budget risks in focus, this volatility may persist as investors monitor further developments in policy.”
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