British equities closed Wednesday in negative territory, with the FTSE 100 finishing 0.18% lower as geopolitical tensions around the Strait of Hormuz unsettled investors.
Markets received a stream of conflicting signals regarding the US-Iran conflict, making it difficult for traders to take a clear directional stance through the session.
Pakistan’s defense minister, Khawaja Asif, told Bloomberg that the US and Iran were nearing a possible “arrangement” to resume traffic through the Strait of Hormuz, offering some relief to markets.
Qatar’s Foreign Ministry spokesperson told Al Jazeera that Oman and Iran were at an advanced stage of negotiations, adding further cautious optimism to the geopolitical picture.
However, a Houthi strike in the Bab el-Mandeb Strait was suspected during the session, and a US attack on a vessel in the Gulf of Oman was also reported by media outlets.
President Donald Trump struck a confident tone, stating “we totally control the Strait of Hormuz” and adding that “right now, we’re in a very good position.”
Bunzl (BNZL.L) fell 1.71% after Deutsche Bank Research downgraded the distribution and outsourcing group to hold from buy, while lifting its price target to 30 pounds from 29.5 pounds.
Deutsche Bank analysts noted that “with the shares having largely recovered the ground lost after the 2025 profit warning, and now trading closer to its long-run average valuation multiples, we believe these positives are more fairly reflected in the price.”
The bank acknowledged that 2026 had brought positive volume growth, a return to inflation, and restored availability in Bunzl’s North America Distribution business, but concluded the recovery was already priced in.
Hill and Smith (HILS.L) dropped 5.35% after profit attributable to owners of the parent fell to $47.7 million for the six months ended June 30, down from $61.4 million a year earlier.
Chief Executive Officer Rutger Helbing pointed to “challenging” UK trading conditions but said the company remained on track strategically, noting “sustained US momentum” heading into the second half.
Helbing added that “overall, we are making good strategic progress, and we are well positioned to continue delivering against our medium-term financial framework.”
He also said that following a strong first half, the company now expects FY26 underlying operating profit to be “modestly ahead of our previous expectations,” providing some reassurance to investors.
Balfour Beatty (BBY.L) was the standout performer of the session, climbing 7.91% after the infrastructure group significantly upgraded its financial outlook for the full year.
The company revised its 2026 net finance income guidance to between 35 million pounds and 40 million pounds, up from a previous range of 28 million pounds to 32 million pounds.
Balfour Beatty also raised its growth outlook for underlying profit from operations from earnings-based businesses to low double digits, having previously guided for high single digit growth.
