Financial Wire

UK Shares Gain on Better-than-Expected GDP Report; Entain Shines

-- The UK's FTSE 100 rallied 0.29% on Thursday's close after government data showed better-than-expected economic growth in February, while the US blockade of Iranian ports continues as the Trump administration seeks a peace agreement with Iran.

The UK's gross domestic product expanded 0.5% month over month in February, following a revised 0.1% growth in January, the Office for National Statistics said. The reading beat market expectations for a 0.1% uptick.

"The large upside surprise to GDP growth in February will reignite concerns about residual seasonality in the GDP statistics, but nonetheless confirms that the economy made a good start to the year," Berenberg said. "On an annual basis, growth picked up from 0.7% yoy to 1.0% yoy as a strong February made up for a disappointing end to 2025. Sadly, the start of the Iran war on 28 February will stop the upswing in its tracks."

In corporate news, Entain (ENT.L) climbed 6.02% to become one of the top risers on the blue-chip index after reiterating its 2026 guidance for online net gaming revenue to rise between 5% and 7% on a constant currency basis. The sports betting and gaming company's net gaming revenue rose 3% for the first quarter, with online net gaming revenue rising 5% and retail net gaming revenue down 3%.

"Our strong and resilient business has started the year well, and we continue to build on this momentum. Our sharper focus and optimisation initiatives reinforce our conviction in delivering sustainable growth and improving cash generation. Entain remains well positioned to be a long-term industry winner, seizing the many opportunities ahead, and I am confident in our future," Chief Executive Officer Stella David said.

On the flip side, Rentokil Initial (RTO.L) fell 0.82% at closing. The pest control and hygiene services company logged a 4.3% yearly rise in first-quarter revenue while projecting full-year performance in line with market expectations.

"Q1 organic growth was slightly ahead at 3.4% (vs our forecast of 3.0%)," RBC Capital Markets said. "Within that US Pest Control Services growth was 2.8% - slightly better than Q4's 2.6%, despite the tough weather in Jan. This was partly offset by weaker growth in International, due to tough Pacific [comparables] and Middle East impacts."

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