FTSE 100 latest: Index breaks 7100 barrier as Barclays activist dumps stake

EDWARD Bramson’s three-year tussle with Barclays boss Jes Staley ended with a whimper today when the activist investor dumped his entire stake in the banking giant.

The New York tycoon’s Sherborne investment arm has been agitating for change since 2018, arguing that Barclays should shed its powerhouse trading division in order to free up billions of capital for higher payouts to investors.

Staley stood firm, however, insisting that the investment banking operation was a vital part of the bank’s future success. Bramson’s attempts to secure a place on the Barclays board were also frustrated after failing to win over sceptical fellow shareholders.

Bramson raised the white flag on the campaign today, selling Sherborne’s entire 6% stake with Barclays shares still trading about 12% lower than where they were in March 2018.

Sherborne said it had found a new investment opportunity that offers a better return than a continuing investment in Barclays. Investors shrugged off his departure, with the bank’s shares up another 3.5p to 180.62p to continue their rally from 133p at the end of January.

Today’s 2% rise for Barclays was one of the factors helping the FTSE 100 index to power through the 7,100 barrier, with Anglo American among others performing well. The top flight rose 29.83 points to its highest level since February last year, at 7,106.09.

The engines giant Rolls-Royce and GKN engineer Melrose Industries were the biggest risers, up 3% to 106.08p and 169.1p respectively, amid encouraging signs over the recovery in international travel.

Next shares remained close to their record high after rallying 2% yesterday following the retailer’s better-than-expected trading figures. The stock clung to those gains at 8,272p after analysts at Liberum today raised their price target to 9,000p.

The mood in the domestic-focused FTSE 250 index was particularly strong after the Bank of England yesterday raised its growth forecast for 2021 to 7.25% and as investors digested takeover developments involving St Modwen Properties and John Laing.

The FTSE 250 lifted 81.59 points to 22,709.45, with Virgin Money up 8.4p to 208p in the week that the challenger bank posted robust half-year results.