6 stocks that kept FTSE 100 above 7,200 this week

The FTSE 100 index continued to remain above 7,200 during the week, as companies reported positive developments. However, there were drags too.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

At the end of last week, the FTSE 100 index closed at highs not seen since February 2020, before the pandemic started. Just for this reason, I was cautious of what this week would bring. Going by the recent fluctuations in stock markets, I was braced for yet another correction. But the index has stood its ground. 

Improving trends for the FTSE 100 index

For four of the five trading sessions this week, the FTSE 100 index closed higher than 7,200, ending the week at 7,204.5. It closed below the level on Thursday but only just, at 7,190. As a result, the average index level in October is now 1% higher than it was during the month before. This is encouraging in any case, but particularly so because the month started on a poor note. And this followed a 1% fall in the index in September from the month before. 

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

AstraZeneca advances, UBS raises target price

Now, of course the general investor mood has shifted for the better as some stocks performed well. One of them was the pharmaceutical giant AstraZeneca, whose share price crossed 9,000p for the first time since July last year. This brings it much closer to the all-time highs of 9,320p touched then. The increase follows positive results from the trials of its liver cancer drug. Investment firm UBS raised its price target for the company to 10,000 from 9,200 earlier, which may have increased investor enthusiasm for the stock too.  

Burberry appoints new CEO

Luxury brand and retailer Burberry was another news-making stock, and also showed moderate gains this week. It said that Jonathan Akeroyd, who is currently CEO of Versace, will now be heading it. Its former CEO, Marco Gobbetti, who is credited for the company’s strong performance over the past few years, had put in his papers recently. 

Positive results’ season

Engineering company Renishaw was a big gainer this week. The company’s annual revenue grew by 11% for the year ending 30 June from the year before. And its adjusted pre-tax profits grew by a whole 146%. The stock gained around 10% this week. Analytics provider Relx also showed small gains after it upgraded its outlook due to increased demand for analytics. Chemicals company Croda International also rallied on good results.

Unilever, the fast-moving consumer goods multinational, also inched up a bit after it reported higher than expected underlying sales in the third quarter compared to the year before. The number stood at 2.5% compared to expectations of 2.2%. However, cost pressures are taking their toll on the company, which warned of price increases in the future. 

Inflation drag on the FTSE 100 index

In fact, inflation may have been one of the drags on the index, holding it back from further progress. Earlier this week, it came in above 3% for the second month running in September even as the economic recovery remains weak. While companies’ results are heartening this week, going by the latest price increases, I think more companies will allude to rising costs in the results expected next week as well. 

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Manika Premsingh owns shares of AstraZeneca and Burberry. The Motley Fool UK has recommended Burberry, Croda International, RELX, Renishaw, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

More on Investing Articles

young woman celebrating a victory while working with mobile phone in the office
Investing Articles

Here’s why I’ll buy this FTSE 250 growth stock next month

Andrew Woods likes this FTSE 250 growth stock and thinks it would be a good addition to his portfolio as…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

3 signs that shares could be set for a new bull market

Stock markets are cyclical, and investors go through phases of buying and selling. How can we best deal with the…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

How I plan to make passive income with just £3 a day

There are multiple ways to make passive income in 2022, but our writer considers a popular method that involves dividend…

Read more »

Middle-aged white man pulling an aggrieved face while looking at a screen
Investing Articles

Lloyds shares are down 10% in 2022. What next?

Lloyds shares have dropped by almost a tenth so far in 2022. But the bank is in good shape to…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

How to aim to use the Warren Buffett method to make a million, starting today

Why do investors love Warren Buffett so much? His 3.6 million percent investment return since 1965 probably has a lot…

Read more »

Various denominations of notes in a pile
Investing Articles

3 big income stocks hiding in plain sight

There are plenty of high-paying income stocks flying under the radar right now. Paul Summers offers three examples he likes.

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

2 FTSE 100 shares I’m buying in July

Andrew Woods wonders whether these two FTSE 100 shares could bring growth to his portfolio and if he should add…

Read more »

positive mental health woman
Investing Articles

2 dirt-cheap stocks investors should buy to hold until 2030!

Recent market volatility means lots of UK shares now offer brilliant value. Here are two ultra-cheap stocks on my radar…

Read more »