(fxcue news) - U.K. stocks are modestly higher on Monday with the benchmark FTSE 100 hovering near record highs, led by gains defense shares like in most of the major markets across Europe, on prospects of increased spending on defense. The FTSE 100 was up 61.97 points or 0.7% at 8,871.71 a little past noon. BAE Systems is up with a hefty gain of 14%. Rolls-Royce Holdings is gaining about 5.5%. IMI, Antofagasta, Anglo American Plc and Intermediate Capital are up 2.5 to 4%. Glencore is rising 2.3%, while Haleno is advancing nearly 2% and Melrose Industries is gaining 1.8%. Fresnillo, Flutter Entertainment, Rightmove, Shell, Rio Tinto, GSK, F&C Investment Trust, Marks & Spencer, HSBC, Hikma Pharmaceuticals, Smurfit, Smith & Nephew and Vistry Group are also notably higher. Shares of distributor of non-food products, Bunzl Plc are down nearly 7% on weak results. The company posted statutory pre-tax profit of 673.6 million pounds for fiscal year 2024, down 3.6% from last year's 698.6 million pounds. Profit for the year declined to 501.0 million pounds or 148.7 pence per share from 526.2 million pounds or 156.0 pence per share a year ago. On an adjusted basis, Bunzl's pre-tax profit was 872.9 million pounds, compared to 853.7 million pounds a year ago. National Grid and Severn Trent are declining 2.5% and 2.4%, respectively. B&M European Value Retail, IAG, Taylor Wimpey, United Utilities, J Sainsbury, SSE, Airtel Africa, Croda International and BT Group are down 1.3 to 2%. A report from S&P Global said the UK manufacturing PMI fell to 46.9 in February from 48.3 in January, revised higher from preliminary expectations of 46.4. A report from the Bank of England said net net mortgage approvals for house purchases in the UK, a key indicator of future borrowing, remained largely stable at 66,190 in January 2025, slightly down from a downwardly revised 66,510 in December but exceeding market expectations of 65,650.