FTSE 100 Index Nears 8,800 on Strong Day – May Rally Continues

London's FTSE 100 index continued to rally today, adding 0.94% to reach 8,781.12 by the close of the session. With the index now nearing 8,800, after a 5.43% gain over the past month (+452.52 points), a move towards highs in the coming days cannot be discounted.

The rally was rather broadly based on the day, with plenty of stocks ending green. Diploma, Smiths Group, Burberry, and Ocado, led the way, although ably supported by other Footsie heavyweights such as J Sainsbury, Lloyds Bank, and Glencore.

Diploma's share price (LON: DPLM) surged 15.11% following the upward revision of its full-year organic revenue growth and operating margin guidance. For the first six months leading to March, Diploma saw a 25% increase in adjusted operating profit, totaling £156.9 million.

Revenue also climbed by 14% to reach £728.5 million. Organic revenue growth marked at 9% was a significant improvement from 5% the previous year, and the full-year expectation is set at 8%, higher than the initial 6%. The daily momentum was significant enough to move shares from red to green on a YTD basis (+13.82%).

Smiths Group (LON: SMIN) contributed positively with its third-quarter organic revenue growth of 10.6%, culminating in a 9.6% rise over nine months. This performance puts Smiths Group at the high end of the anticipated 6-8% growth range. Smiths Group's share price gained 4.26%, with the intra-day high of 2,156p with touching distance of the ATHs (2,188p). Momentum is firmly bullish in the name, with the YTD gain of 23.72% a significant outperformance on broader markets.

Centrica's (LON: CNA) market value also saw a boost. This was largely due to Ithaca Energy's acquisition of a 46.25% stake in the Cygnus gas field from Spirit Energy for £116 million, further solidifying its operational capacity in the energy sector.

Centrica's share price has also risen by 14.07% from the start of the year, and has been climbing steadily since Q4 2024.

With Marks & Spencer, and JD Fashion set to report financials tomorrow, there could be some significant moves in the related stocks, as well as potential sympathy plays from other names in the sectors. Strong reports could well set the index up for a push in early trading, with 8,800 to be first near-term level to watch.