By Sara Sjolin and Victor Reklaitis, MarketWatch

Drugmakers recover after Trump-fueled selloff

U.K. stocks gained for a 14th straight day on Friday, extending their record winning run as a soft pound helped spur investors to buy into British multinationals.

The FTSE 100 index rose 0.6% to finish at 7,337.81, scoring another record close. The gauge marked a 12th consecutive all-time closing high, the longest such streak ever.

For the week, the London benchmark nabbed a 1.8% gain, achieving its sixth straight weekly advance.

Sterling pressure: The index ended marginally higher on Thursday (http://www.marketwatch.com/story/ftse-100-falls-after-retailers-reveal-christmas-trading-figures-2017-01-12) after the pound was driven lower.

The resumed selling pressure on sterling followed media reports that Prime Minister Theresa May will deliver a landmark speech Tuesday (http://www.marketwatch.com/story/uk-pm-theresa-may-to-deliver-major-brexit-speech-tuesday-2017-01-12) on plans for negotiating the U.K.'s exit from the European Union.

Critics have accused May (https://twitter.com/TheEconomist/status/817110825206956032) of being unclear and not providing details on Brexit efforts. But the British leader has denied the government's approach (http://www.marketwatch.com/story/dollar-kicks-off-week-higher-still-juiced-by-jobs-data-2017-01-09) is "muddled," while signaling a so-called "hard Brexit" is likely.

A hard Brexit refers to a scenario where the U.K. regains control of its borders, but gives up access to the EU's single market. Economists fear losing access to the single market -- the U.K.'s biggest export market -- will hurt domestic business activity, and particularly the financial sector.

The pound recovered somewhat Friday, with sterling buying $1.2202 compared with $1.2163 late Thursday in New York. But it was still down by nearly 1% against the dollar for the week.

A weaker pound helps lift FTSE 100 companies, as it tends to aid multinationals that generate the bulk of their revenue outside of Britain.

Movers and shakers: Drugmakers rebounded, having fallen after U.S. President-elect Donald Trump's press conference on Wednesday. Trump hinted at forthcoming legislation (http://www.marketwatch.com/story/biotech-etfs-fall-as-trump-says-more-bidding-needed-on-drugs-2017-01-11) that could erode the sector's profitability.

Shares of Shire PLC (SHPG) (SHPG) climbed 2.3%, Hikma Pharmaceuticals PLC (HIK.LN) gained 2%, and AstraZeneca PLC (AZN.LN) (AZN.LN) added 1.2%.

"Markets have pared bets the president-elect's hostile attitude to drug pricing would spill over to international markets," said Jasper Lawler, senior market analyst at London Capital Group, in a note.

Precious-metals miners declined as gold and silver prices moved lower (http://www.marketwatch.com/story/gold-heads-for-2-weekly-gain-as-dollar-wobbles-2017-01-13). Shares of Fresnillo PLC (FRES.LN) gave up 0.6%, and Randgold Resources Ltd. (RRS.LN) (RRS.LN) fell 1.3%.

Outside the main index, SIG PLC (SHI.LN) soared 16% after the building products supplier reported a rise in sales and reassured investors by forecasting underlying pretax profit within its previous guidance.

(END) Dow Jones Newswires

January 13, 2017 11:57 ET (16:57 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Sig (LSE:SHI)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Sig Charts.
Sig (LSE:SHI)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Sig Charts.