London, Jan 21, 2026, 09:21 GMT — Regular session
- Shares of Smiths Group edged up 1.0% to 2,596 pence shortly after the open, nearing a 52-week peak.
- The company revealed an additional tranche of share repurchases, confirming the stock buyback remains active
- UK inflation came in a bit higher than expected, leaving the path for interest rates uncertain
Shares in Smiths Group climbed 1.0% to 2,596 pence by 0921 GMT following news of an additional buyback program. The stock added 26 pence on the session, pushing the company’s market capitalization to roughly £8.2 billion. (London South East)
Risk appetite remains fragile across Europe. The STOXX 600 slipped in early trading while investors grappled with fresh trade concerns, and London’s blue-chip index held mostly steady. (Reuters)
In Britain, inflation data picked up noise again. Headline inflation climbed to 3.4% in December from 3.2% in November, surpassing the 3.3% median forecast in a Reuters poll. Services inflation edged higher to 4.5%. “For now it’s a speed-bump, rather than an indication we are veering off course,” said Adam Deasy, an economist at PwC. (Reuters)
Smiths revealed it snapped up 150,000 ordinary shares on Jan. 20 via HSBC Bank, with prices ranging from 2,530 to 2,580 pence per share depending on the trading venue. The company confirmed, “Smiths Group will cancel the purchased shares.” (Investegate)
Smiths disclosed the purchase of 241,118 shares the previous day, also via HSBC, at prices between 2,570 pence and 2,598 pence. The company confirmed these shares are set to be cancelled too. (Investegate)
Buybacks act as a mechanical boost since a company becomes a constant buyer of its own shares. However, they don’t alter the underlying business performance by themselves. When shares are canceled, the total share count drops, potentially increasing earnings per share, assuming profits remain steady.
The wider UK market held steady in early trade following a steep drop the previous day. The FTSE 100 hovered near 10,128 points in delayed figures, having fallen roughly 0.7% on Tuesday. (Investors Chronicle)
Smiths faces a near-term puzzle: how fast will it keep buying back shares, and will the market remain supportive enough for this to make a difference? Traders are also watching for clues on how rate expectations might influence valuations of steady industrial earners.
There’s a clear downside risk here. Should inflation remain stubborn, the Bank of England might hold policy tight for an extended period. Higher discount rates usually squeeze multiples. And any sharper risk-off move sparked by trade news would probably overwhelm the boost from modest buybacks.
Smiths Group will reveal its FY2026 interim results on March 20. Investors will be keen to hear any news on trading momentum and plans for capital returns. (Smiths)
