- FTSE 100 up 0.7% and FTSE 250 down 0.5%
- AI tools launch by Altruist impacts UK wealth managers
- LSEG climbs after reports Elliott Management has built stake
Feb 11 (Reuters) - UK midcap stocks fell on Wednesday, with British wealth managers slumping as the sector became the latest casualty of fears of disruption by artificial intelligence, while LSEG shares rose following reports activist investor Elliott has built a stake.
The FTSE 250 index of domestically oriented companies dipped 0.5% as of 1137 GMT, having closed on Tuesday at its strongest level in four years.
Shares of Aberdeen Group, Quilter, IG Group and AJ Bell fell in the range of 2.4% to 6%, tracking losses in their U.S. peers after wealth management startup Altruist introduced AI-enabled tax-planning features, fuelling fears over disruption to incumbents.
FTSE 100-listed St. James's Place tumbled 10.7%.
The blue-chip FTSE 100, however, rose 0.7%, helped by miners and bank stocks.
London Stock Exchange Group rose 2% after media reports said activist investor Elliott Management has built a stake and is engaging with the financial data and analytics group to improve its performance.
In a busy day for corporate updates, investors were also looking to U.S. payrolls data later in the day. The report is expected to show a pickup in job growth in January.
Preliminary reading of UK's fourth-quarter GDP is due on Thursday, while December jobs data will be released next week. The Bank of England said last week that borrowing costs were likely to fall if an expected drop soon in inflation was sustained.
Among other movers, London-listed miners Rio Tinto and Anglo American rose 2.5% each, as copper prices climbed on a weaker dollar.
Barratt Redrow fell 5.5% after the home builder reported a 13.6% decline in first half adjusted pre-tax profit amid subdued demand in the industry.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed
Source: Reuters