March 19 (Reuters) - The FTSE 100 closed higher on Tuesday led by Unilever which had its strongest day in over a month after a decision to spin off a business unit, though caution prevailed ahead of a domestic inflation print.
The blue-chip FTSE 100 (.FTSE), opens new tab ended 0.2% higher. Unilever (ULVR.L), opens new tab rose 3.1% as the consumer goods group plans to spin off its ice cream unit, home to popular brands such as Magnum and Ben & Jerry's, and cut 7,500 jobs.
Unilever's shares drove a 0.9% gain in the personal care sector index (.FTNMX452010), opens new tab.
"It costs the company more to sustain the ice cream business, there is a different supply chain because it is dealing with frozen goods and it's more seasonal than the company’s other roster of brands," said Russ Mould, investment director at AJ Bell.
Investors however refrained from placing big bets ahead of key domestic inflation data on Wednesday, following which the global focus will be on the U.S. Federal Reserve's monetary policy verdict.
Later in the week, the Bank of England's rate decision is also due. Traders widely expect rates to be held at current levels, although the focus will be on clues on the timing of the first rate cut. 0#BOEWATCH
The FTSE 100 has underperformed its European and U.S. counterparts so far this year, owing to uncertainty over rate cuts and the lack of exposure to technology stocks, which have led global euphoria around artificial intelligence.
On the other hand, the mid-cap FTSE 250 (.FTMC), opens new tab closed 0.3% lower, bogged down by a 9.1% slump in Crest Nicholson (CRST.L), opens new tab after the homebuilder said it could build up to 11% fewer homes in fiscal 2024.
The homebuilding (.FTNMX402020), opens new tab sub-index dropped 1.4%.
Among others, Close Brothers (CBRO.L), opens new tab jumped 4.0% after the lender said it expects to sustain underlying loan book growth in the second half of the year.
Reckitt (RKT.L), opens new tab lost 4.5% after brokerage Citigroup slashed its price target on the stock by 400p to 5,500p after estimating a 4 billion pound potential settlement liability in relation to Enfamil baby formula related lawsuits.
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Reporting by Pranav Kashyap, Johann M Cherian and Shristi Achar A in Bengaluru; Editing by Mrigank Dhaniwala, Sherry Jacob-Phillips and Nick Macfie
