Energy firms recharge as windfall tax fears ease

Investors today piled back into London-listed energy firms that were pummeled earlier this week by rumours they will be spiked by the government including them in a windfall tax on the energy sector.

The capital’s premier FTSE 100 index jumped 0.51 per cent to 7,522.75 points, while the mid-cap domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, bumped 0.42 per cent higher to 19,934.04 points.

Some of the UK’s largest energy firms suffered heavy losses on Tuesday due to UK lawmakers allegedly drawing up plans to levy electricity suppliers alongside oil and gas titans to yield funds to fund a package to offset the cost of living squeeze on households.

SSE was among the biggest fallers earlier this week, but pared back some of those losses today, advancing 5.75 per cent.

FTSE 250-listed Drax Group, which also tumbled on Tuesday, was among the biggest risers on the index today, initially adding 6.71 per cent, before losing some of those gains.

Reports today suggested the government is unlikely to include electricity and other energy providers in a windfall tax and will instead isolate the levy to the likes of Shell and BP.

FTSE 250-listed food retailer M&S today warned profits would come in lower this year due to rising living costs prompting a cool down in consumer spending.

However, a rise in profits over the last year offset concerns about the firms’ sales, sending its shares up nearly five per cent.

But, Brits are still keen to treat their animal friends, Pets at Home said, lifting its shares up over 13 per cent. 

The pound was broadly flat against the dollar.