# FTSE 100 extends gains, Micro Focus soars on buyout deal
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-26
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: FTSE 100 Index Climbs 0.5% on Commodity Gains
Meta Description: Get the latest updates on the UK's blue-chip index with gains in commodities and banking sectors. Stay informed with Reuters for valuable insights.
URL: https://financedigest.com/ftse-100-extends-gains-micro-focus-soars-on-buyout-dealhtml

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By Johann M Cherian and Sruthi Shankar

(Reuters) -UK’s blue-chip index rose for a second straight day on Friday on gains in commodities and banking sectors, while shares of software firm Micro Focus nearly doubled after a $6 billion buyout deal.

The FTSE 100 index rose 0.5%. The industrial metal and mining index climbed 1.7% as [hopes of fresh stimulus in China](https://www.financedigest.com/european-shares-rally-as-china-stimulus-lifts-recovery-hopes.html "European shares rally as China stimulus lifts recovery hopes") aided copper and other metal prices. \[MET/L\] \[IRONORE/\]

Still, the main index was heading for weekly losses after data highlighted the impact of surging prices on business activity and central [bank policymakers stuck to an aggressive tone on interest rate hikes despite](https://www.financedigest.com/seven-out-of-ten-uk-adults-aged-25-44-never-seek-advice-on-dealing-with-debts-despite-depending-on-the-bank-of-mum-and-dad.html "Seven out of ten UK adults aged 25-44 never seek advice on dealing with debts despite depending on the bank of mum and dad") signs of economic slowdown.

British energy bills will [rise 80% to an average of 3,549 pounds](https://www.financedigest.com/dollar-slips-after-upbeat-china-data-euro-pound-rise.html "Dollar slips after upbeat China data; euro, pound rise") ($4,188) a year from October, said regulator Ofgem, calling it a “crisis” that needed to be tackled by urgent and decisive government action.

It’s what people have been anticipating already,” said Oliver Allen, [markets economist at Capital Economics](https://www.financedigest.com/wall-street-bounces-oil-slides-as-markets-mull-murky-economic-picture.html "Wall Street bounces, oil slides as markets mull murky economic picture").

When we find out who won the Conservative Party leadership election, people might get a bit more of a clue on what the [government in the UK is going to give households in terms of assistance with gas prices.”](https://www.financedigest.com/carrefour-unveils-30-euro-shopping-basket-in-spain-after-government-price-cut-proposal.html "Carrefour unveils 30 euro shopping basket in Spain after government price cut proposal")

The two candidates, Liz Truss and [Rishi Sunak](https://www.financedigest.com/british-pm-rishi-sunak-pledges-further-action-on-strikes-to-protect-lives.html "British PM Rishi Sunak pledges further action on strikes to ‘protect lives’"), have clashed over how to respond. Their proposals, which [include suspending environmental levies or cutting a sales](https://www.financedigest.com/stanchart-weighing-options-including-sale-of-aircraft-lessor-unit.html "StanChart weighing options, including sale, of aircraft lessor unit") tax, have been dismissed by economists as too little to avert the unprecedented hit to household budgets.

[Investors will be watching Federal Reserve Chair Jerome Powell’s speech later in the day for clues](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") on where U.S. [interest rates](https://www.financedigest.com/ecb-raises-interest-rates-again-cuts-bank-subsidies.html "ECB raises interest rates again, cuts bank subsidies") are headed.

Drugmaker GSK [gained 2% after Citigroup said it was on “a positive catalyst watch”](https://www.financedigest.com/dollar-gains-after-fitch-watch-heightens-debt-ceiling-jitters.html "Dollar gains after Fitch watch heightens debt ceiling jitters") following the Zantac legal developments that could materially reduce its exposure, compared to the $17 billion that is discounted. GSK’s recently spun-off consumer health unit Haleon added 2.6%.

The domestically-focussed FTSE 250 index rose 0.6% but was also on [course to record](https://www.financedigest.com/britain-on-course-for-hottest-day-on-record.html "Britain on course for hottest day on record") a sharp weekly decline.

Micro Focus [International Plc soared](https://www.financedigest.com/international-investment-soars-as-albania-steps-into-global-spotlight.html "INTERNATIONAL INVESTMENT SOARS AS ALBANIA STEPS INTO GLOBAL SPOTLIGHT") 91.9% to hit more than one-year highs after Canada’s OpenText said it would be acquiring the enterprise software maker in an all-cash deal of $6 billion including debt.

(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Rashmi Aich and Sriraj Kalluvila)


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