London, June 17, 2026, 15:15 BST
- Legal & General shares edged up, outpacing a weaker FTSE 100.
- UK inflation stayed at 2.8% in May, giving the Bank of England a little breathing room before its rate call on Thursday.
- L&G’s latest buyback update kept its capital-return story in focus.
Legal & General Group shares moved up in late quotes on Wednesday, outpacing the broader FTSE 100. Investors were watching after a mild UK inflation reading before the Bank of England rate call. Hargreaves Lansdown priced the shares at 283.30p/283.40p, a gain of 1.60p or 0.57%. The FTSE 100 slipped 0.16%.
This shift stands out because Legal & General does more than standard insurance. The business leans on institutional retirement, asset management, insurance and retail retirement. That leaves shares with exposure to rates, annuity appetite and long-term savings. AJ Bell put L&G’s market cap near £15.53 billion and the yield at 7.73%.
UK consumer price inflation stayed at 2.8% in May, matching April’s 13-month low and coming in under forecasts that had called for 3.0%, Reuters said. “Today’s data strengthens the case for a continued cautious approach,” KPMG chief economist Yael Selfin said. Rob Wood at Pantheon Macroeconomics said “a chunk of inflation is locked in the system now.” Reuters
London stocks slipped in early trade, with the FTSE 100 down 0.14% at 10,479.77 by 0936 GMT. Losses in consumer staples and energy stocks dragged the index lower. “For the investor it is a dilemma,” said Nick Saunders, CEO of Webull UK, pointing to economic strength that might support tighter monetary policy. Reuters
With little company-specific news moving the stock, the buyback has been the main support. Legal & General said Monday it bought 3.82 million ordinary shares between June 8 and June 11, using Barclays Capital Securities. The shares will be cancelled. A buyback is when a company buys back its own shares, usually cutting the share count.
The programme is part of a bigger capital-return plan announced with March results. Legal & General posted 2025 core operating profit of £1.62 billion, a rise of 6%. Core operating earnings per share climbed 9%. Chief Executive António Simões said L&G had made “meaningful progress in reshaping L&G.” L&G Group
Sector action was uneven, with Aviva up 0.34% and M&G down 0.12%. Prudential dropped 0.30% on Hargreaves Lansdown’s FTSE 100 sheet, but Legal & General added 0.28% on the same list.
Traders say a surprise move by the Bank of England, or another jump in energy or food prices, could flip the rates outlook fast. The Guardian quoted Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales, saying a U.S.-Iran peace deal might keep inflation from climbing, but warned it could still take months for energy prices and supply chains to settle.
